[HISTORY: Adopted by the Borough Council of the Borough of
Baldwin as indicated in article histories. Amendments noted where
applicable.]
GENERAL REFERENCES
Taxation — See Ch. 146.
[HISTORY: Adopted 12-18-2012 by Ord. No. 848]
This article shall be known as the "Tax, Tax Claim, Tax Lien,
Municipal Claim and Municipal Lien Attorney Fees and Servicing Charges,
Expenses and Fees Ordinance."
A.
Title search.
B.
In any enforcement proceeding, the actual cost of a title search
in an amount not to exceed $250 shall constitute a reasonable expense
for each title search necessary for the initiation of each proceeding
and compliance with Pa.R.C.P. 3129. The sum not to exceed $50 shall
constitute a reasonable expense for each bringdown or update of the
title search in connection with entry of judgment, issuance of execution,
listing for sale, or other action.
C.
Actual out-of-pocket expenses in connection with any enforcement
action, such as for postage, non-sheriff's service of process,
investigation of the whereabouts of interested parties and other necessary
expenses shall constitute reimbursable expenses as part of each delinquent
claim recovered.
A.
Flat fee matters. The following schedule of attorneys fees is hereby
adopted and approved as reasonable attorneys fees pursuant to Act
1 and Act 20 for all matters described, which fees shall be awarded
to the municipality, its agents, counsel or assigns in each action
initiated pursuant to the Act for the collection of unpaid delinquent
claims. The property owner's obligation to pay the full amount
of the flat fee for each phase of each action shall accrue upon the
initiation of any aspect of each phase. The full amount of each flat
fee for each prior phase of the proceeding shall carry over and be
due on a cumulative basis together with the flat fee for each subsequent
phase.
(1)
Filing of municipal claim. The sum of $150 shall constitute reasonable
Attorney fees for the preparation and filing of a municipal claim
as defined under the Act.
(2)
Preparation and service of writ of scire facias or complaint in assumpsit
as provided in the Act. The sum of $450 shall constitute reasonable
Attorney fees for the initiation of each proceeding and shall include
preparation and filing of the praecipe for writ of scire facias or
complaint in civil action, sheriff's direction for service, notice
pursuant to Pa.R.C.P. 237.1 and the preparation and filing of the
praecipe to settle and discontinue the proceeding. The above does
not include:
(a)
Federal tax liens, judgments and mortgages. Where there are
federal tax liens, federal judgments, federal mortgages or other record
federal interests, the sum of $200 shall constitute reasonable Attorney
fees for all matters necessary to properly notify and serve the United
States with all required additional notice and the presentation of
related motions to the court.
(b)
Alternative service of legal pleadings. In the event that a
special order of court is necessary to serve original process or any
other pleading, notice, court order or other document, the following
amounts shall constitute reasonable attorney fees as follows:
(3)
Amicable scire facias or consent judgment. The sum of $400 shall
constitute reasonable attorney fees for the preparation, filing, monitoring
and conclusion of an amicable scire facias or consent judgment, including
negotiation, preparation and filing of the pleading, acceptance of
service, installment payment and/or forbearance agreement and satisfaction.
See 53 P.S. § 7185. Municipality may, in its sole and absolute
discretion, hold the amicable scire facias or consent judgment and
file only in the event of a default in the terms and conditions of
the amicable scire facias or consent judgment or any related installment
or forbearance agreement. If a consent judgment is entered following
the filing of writ of scire facias or complaint in assumpsit, then
the flat fee for entry of the consent judgment shall be the same as
that amount provided for in Subsection D, Entry of judgment, below.
(4)
Entry of Judgment. The sum of $225 shall constitute reasonable attorneys
fees in connection with entry of judgment which shall include preparation
and filing of the praecipe to enter judgment notices of judgment,
affidavit of non-military status, and the praecipe to satisfy judgment.
(5)
Writ of execution - sheriffs sale of property or execution upon assumpsit
judgment. The sum of $700 shall constitute reasonable attorneys fees
for preparation of all documents necessary for each execution upon
any judgment pursuant to the Act. This sum shall include the preparation
and filing of the praecipe for writ of execution, all sheriff's
documents, preparation and service of notices of sheriff's sale,
staying the writ of execution, and attendance at one sheriff's
sale.
(a)
Postponements. The sum of $100 shall constitute reasonable attorney
fees for each continuance of sheriff's sale at the request of
the defendant.
(6)
Sale pursuant to § 31 of the Act, 53 P.S. § 7281.
The sum of $700 shall constitute reasonable Attorneys fees for the
sale of property pursuant to § 31 of the Act, 53 P.S. § 7281,
including preparation and service of necessary documents, court appearances,
attendance at sale and preparation of proposed schedule of distribution
of the proceeds realized from such sale.
(7)
Sale pursuant to § 31.1 of the Act, 53 P.S. § 7282.
The sum of $500 shall constitute reasonable Attorney fees for a sale
of property pursuant to § 31.1 of the Act, 53 P.S. § 7282,
including the preparation of necessary documents, service, court appearances,
and the preparation of proposed sheriff's schedule of distribution.
(8)
Installment payment agreement. The sum of $150 shall constitute reasonable
attorneys fees for the preparation of each written installment payment
agreement.
(9)
Motions. The sum of $200 shall constitute reasonable attorneys fees
for the preparation, filing, and presentation of motions, other than
for alternative service, which shall include, but are not limited
to, motions to reassess damages, motions to amend caption, motions
to continue the sheriff's sale.
B.
Hourly rate matters.
(1)
The following schedule of attorneys fees is hereby adopted and approved as reasonable attorneys fees pursuant to Act 1 and Act 20, which fees shall be awarded to the municipality, its agents, counsel or assigns as compensation in all contested matters, and in all other matters not specifically referenced in § 88-3A above, undertaken in connection with the collection of delinquent claims:
(2)
Each as recorded and charged in units of 1/10 of an hour for all
time devoted to enforcement and collection of the municipality's
delinquent claims. Counsel, whether duly employed or duly appointed
by the municipality, its agents or assigns, shall not deviate from
this fee schedule absent a subsequent ordinance amending the same.
Hourly rate matters include, but are not limited to, any matters where
any defense, objection, motion, petition or appearance is entered
in any phase of any proceeding by or on behalf of any defendant or
other interested party.
A.
Required notice. The notice required by the Act, as amended, 53 P.S.
§ 7106, shall be provided in accordance therewith and shall
be incorporated into an appropriate delinquency notice or notices
sent by the municipality, its agent, counsel or assigns.
B.
Fees to be accrued and delinquent claims to be filed. Fees shall
accrue for all efforts in collection after the 30th day after the
notice, or after the 10th day of any required second notice under
the Act, as amended, 53 P.S. § 7106, on all accounts referred
to counsel for enforcement. Fees accumulated as a result of enforced
collection shall be certified by duly appointed counsel for the municipality
authorized to pursue collection of delinquent claims pursuant to the
Act, or by counsel for the municipality's agents or assigns and,
if not collected in due course with the debt as by voluntary payment,
shall be included in any delinquent claims filed on behalf of the
municipality or by its agents or assigns in the course of enforcement
including any delinquent claims originally filed with the Department
of Court Records, any delinquent claims filed with the sheriff or
in any other delinquent claims filed or statements provided where
attorney fees are due.
C.
The amount of fees determined as set forth above shall be added to
and become part of the delinquent claim or delinquent claims in each
proceeding as provided by the Act and as provided herein.
A.
Pursuant to § 1, § 2 and § 3 of the Act of May 16, 1923, as amended, 53 P.S. § 7101, § 7103 and § 7106, and specifically in the schedule found in accordance with Act 83 of 2004, the municipality does hereby authorize the recovery of charges, expenses and fees set forth in Subsection D, below, that are incurred by the municipality or charged to the municipality by collectors retained by the municipality in connection with efforts to collect delinquent claims as a result of any persons' failure to promptly pay delinquent claims.
B.
The following schedule of charges, expenses and fees (hereinafter referred to as "servicing expenses," "out-of-pocket expenses," and "postage expenses") is hereby approved and adopted by the municipality pursuant to Act 83 of 2004 which amends § 1, § 2, and § 3 of the Act of May 16, 1923, as amended, 53 P.S. §§ 7101, 7103 and 7106, which amounts are the direct result of each person's or property's failure to pay delinquent claims promptly. The servicing expenses, out-of-pocket expenses and postage expenses established, assessed, and collected hereunder shall be in addition to the record costs, § 88-2, Expenses approved, and § 88-3, Attorneys fees, associated with legal proceedings initiated by or on behalf of the municipality to collect its delinquent claims.
C.
Servicing of a delinquent claim or delinquent claims may result in
voluntary payment without the initiation of enforcement proceedings.
It is the intent of this section to pass the cost of servicing on
to the delinquent person or property as part of each delinquent claim.
The recovery of servicing expenses, out-of-pocket expenses and postage
expenses established herein shall not be contingent upon the initiation
of enforcement proceedings. However, such servicing expenses out-of-pocket
expenses and postage expenses are due even where enforcement proceedings
are initiated. The purpose of this section is to pass the entire cost
and expense associated with delinquent collection on to the delinquent
person or property and to make the municipality whole on all delinquent
claims collected.
D.
Schedule. The following schedule of servicing expenses, out-of-pocket
expenses and postage expenses shall constitute reasonable and appropriate
charges, expenses and fees for each indicated category. The servicing
expenses, out-of-pocket expenses and postage expenses shall be added
to and become part of the municipality's delinquent claims, together
with the face, penalties, interest and costs, if any, and title search
expense, attorney fees and out-of-pocket expenses in connection with
enforcement proceedings, if any, and shall be payable in full before
the discharge or satisfaction of any delinquent claim. The below schedule
of servicing expenses, out-of-pocket expenses and postage expenses
is separate and distinct from any amounts imposed by the Sheriff,
Department of Court Records, court or any other public office in connection
with the collection of the municipality's delinquent claims.
(1)
Out-of-pocket expenses. The expenses of postage, title searches,
investigators, process servers and other necessary expenses incurred
in servicing shall constitute reasonable out-of-pocket expenses as
part of each delinquent claim recovered.
(2)
Municipal no-lien letter and tax certification. The sum of $25 shall
constitute a reasonable Servicing Expense for the preparation and
issuance of each municipal no-lien letter relating to the municipality's
delinquent municipal claims. The sum of $10 per year certified shall
constitute a reasonable servicing expense for the preparation and
issuance of each delinquent tax claim certification.
(3)
Postage expense: out-of-pocket expenses shall include the actual
cost of postage related to the collection of the municipality's
delinquent claims.
(4)
Servicing expense:
(a)
A servicing expense of 10% of gross collections shall constitute
a reasonable servicing expense for all servicing related to the collection
of the municipality's delinquent claims. Servicing expenses shall
accrue on the first of the month for the entire month, or part thereof.
There is no per diem servicing expense. Gross collections for the
purpose, of calculating servicing expenses shall include the face
together with penalty, interest and lien costs, if any, for each delinquent
claim collected. Lien costs shall mean charges imposed by the Department
of Court Records and/or by the municipality's collector for the
filing, satisfaction, revival, amendment and transfer of delinquent
claims. Gross collections shall not include any record costs, attorney
fees, or out-of-pocket expenses related to the collection of the municipality's
delinquent claims.
(b)
In addition, the following schedule of fees shall constitute
a reasonable and appropriate fee for each indicated service:
[1]
Assignments: $5 per delinquent claim;
[2]
Preparing/filing tax liens: $5.50 per item;
[3]
Satisfactions: $10 per delinquent claim; (for no consideration
passing receipts);
[4]
Tax claim revivals (i.e., S and A): $20 per delinquent claim;
[5]
Act 1/Act 20 compliance: $35 per Case;
[6]
Preparing/filing municipal claims and claim revivals (S and
A): $25 per delinquent claim;
[7]
S and As (tax or municipal) prepared but not filed: $10 per
S and A;
[8]
Municipal claim/short title examination: $40 per delinquent
claim; and
[9]
Sheriff sale claim certificates: $60 per case.
(c)
Liability for payment of charges, expenses and fees, including servicing expenses, out-of-pocket expenses and postage expenses, shall be for those delinquent claims identified in § 88-6 below, regardless of whether the delinquent claims are filed as claims in the Allegheny County Department of Court Records Office.
A.
This article shall take effect on the date of enactment set forth below ("Effective Date") and with respect to attorneys fees pursuant to §§ 88-3 and 88-4 shall apply to all taxes, tax claims, tax liens, municipal claims, municipal liens, writs of scire facias, judgments, or executions filed on or after December 19, 1990, or as otherwise provided by law.
B.
Liability for payment of servicing expenses, out-of-pocket expenses and postage expenses authorized in §§ 88-2 and 88-5, above, shall accrue as follows:
(1)
Immediately upon the effective date for all of the municipality's
unpaid delinquent tax claims for calendar years 2011 and prior.
(2)
January 15 of each year beginning January 15, 2013, for all of the
municipality's delinquent tax claims for calendar years 2012
and thereafter if not paid-in-full on or before January 14 of the
year after which the taxes first became payable.
(3)
Immediately upon the effective date for all of the municipality's
delinquent municipal claims due in 2012 and prior years originally
billed more than 30 days from the effective date.
(4)
On the 31st day from the initial billing date for all of the municipality's
unpaid delinquent claims for calendar years 2012 and thereafter not
paid-in-full within 30 days after the date of the initial billing
for the delinquent claims.
(5)
For Delinquent Tax Claims following tax bills resulting from additional
assessments:
(a)
By December 31st of the current year or on the 121st day from
the initial billing date, whichever is later, for a current year's
additional assessment, billed in the current year;
(b)
On the 121st day from the initial billing date for a prior year's
additional assessment, billed in a later year.
C.
In no event shall the municipality's right to charge and collect reasonable Attorney fees pursuant to § 88-3 of this chapter be impaired by the fact that any delinquent claim may also include an attorney commission of 5% for delinquent claims filed prior to December 19, 1990. Any attorney fees assessed and collected under this or any prior ordinances pursuant to Act 1 shall be in addition to any 5% commission previously included in any delinquent claim or judgment thereon.
D.
Attorney fees, servicing expenses and out-of-pocket expenses incurred
in pending enforcement proceedings prior to the effective date of
this article, pursuant to a prior ordinance adopted under Act 1 or
Act 20, but not collected, shall remain due and owing in accordance
therewith, and shall be incorporated in any future statement, delinquent
claim, pleading, judgment, or execution. Attorneys fees, servicing
expenses and out-of-pocket expenses in any pending or new action incurred
after the effective date of this article shall be incurred, charged,
and collected in accordance with the schedules and procedures set
forth in this article.
