This article shall be known as the "Tax, Tax Claim, Tax Lien, Municipal Claim and Municipal Lien Charges, Expenses, Fees, Penalty, Interest, Attorney Fees and Commissions Ordinance."
[HISTORY: Adopted by the City Council of the City of Hazleton as indicated in article histories. Amendments noted where applicable.]
[Adopted 9-12-2006 by Ord. No. 2006-17]
All sums paid or incurred by the City to file, preserve and collect unpaid claims, including but not limited to, prothonotary and sheriff fees, postage expenses, title search expenses, fees for non-sheriff's service of process, investigation of the whereabouts of interested parties and other necessary expenses shall constitute reimbursable charges, expenses and fees and shall be charges to and become a part of the amount of each delinquent claim.
To reimburse the City for the recordkeeping and time incurred with regard to the collection of delinquent claims, the City hereby adopts and approves a 10% penalty to be charged to and become a part of the amount of each delinquent claim. Servicing of claims may result in voluntary payment without the initiation of enforcement proceedings. It is the intent of this article to pass the cost of servicing on to the delinquent person or property as part of each claim. The recovery of the penalty established herein shall not be contingent upon the initiation of active collection efforts. However, such penalty is due even when active collection efforts are initiated. The purpose of this article is to pass the cost and expense associated with servicing delinquent claims on to the delinquent person or property and to make the City whole on all delinquent claims collected.
Interest at a rate of 10% shall be collectible on all claims from the date that a claim is filed as a lien.
A.
All claims that are filed as a lien by the City, but that do not require "active collection efforts," as hereinafter defined, by the City Solicitor for collection, shall have charged to and shall become a part of the amount of the claim the following approved attorney fees that are determined to be reasonable:
(1)
For municipal claims and liens, an amount equal to one hour of the Solicitor's standard hourly rate for the cost of the City's Solicitor to file the claim as a lien and an amount equal to one hour of the Solicitor's standard hourly rate for the cost of the City's Solicitor to satisfy the municipal claim as a lien.
(2)
For tax claims and liens, an amount equal to 5% of the amount of the tax claim for the cost of the City's Solicitor to file and satisfy the tax claim as a lien.
B.
In addition to attorney fees charged and collected pursuant to Subsection A above, for all claims that involve active collection efforts, as hereinafter defined by the City Solicitor, in addition to the filing of a claim as a lien, the City hereby adopts and approves the Solicitor's hourly rate as a reasonable fee pursuant to Act 1 and Act 20. All such fees charged by the Solicitor to collect a claim shall be charged to and become a part of the claim being collected. "Active collection efforts" shall mean all efforts by the Solicitor to collect delinquent claims, other than the filing and satisfying of liens. Active collection efforts shall include, but not be limited to, initiating and pursuing legal proceedings in assumpsit or a writ of scire facias, negotiating and documenting payment plans, filing claims with the sheriff's office for properties being sold by other parties, filing proof of claim forms in bankruptcy proceedings, and participating in and pursuing the collection of claims in bankruptcy proceedings.
All charges, expenses, fees and commissions agreed to be paid by the City by contract to a third-party collector for delinquent claims shall be charged to and become a part of the amount of each delinquent claim collected. All charges, expenses, fees and commissions agreed to be paid by the City by contract to a third-party collector for current claims shall be paid by the City.
Partial payments received by or on behalf of the City shall be applied to an outstanding claim in the following order:
A.
First, to current claim amounts due;
B.
Second, to the commissions to be paid to third-party collectors for delinquent claim amounts;
C.
Third, to the unpaid interest owed on liened claims; and
D.
Fourth, to the unpaid balance of a delinquent claim (which shall include the face or principal amount of the delinquent claim plus all charges, expenses and fees, penalty and attorney fees).
A.
This article shall take effect on the date of enactment set forth below.
C.
In no event shall the City's right to charge and collect an attorney commission of 5% for claims filed prior to January 1, 1996 be impaired or affected by this article. Any attorney fees approved by § 302-5 herein shall be in addition to the 5% commission previously included in any claim or judgment filed prior to January 1, 2006.
D.
All charges, expenses, fees, penalty and interest, incurred in pending liens or enforcement or collection proceedings as of the effective date of this article pursuant to prior ordinances adopted pursuant to Act 1, but not collected, shall remain due and owing in accordance therewith, in addition to the charges, expenses, fees, penalty and interest approved by this article.
[Adopted 10-23-2019 by Ord. No. 2019-12]
A.
Whereas, the City of Hazleton (the "City") has determined it to be in the best interest of all citizens and taxpayers of the City to establish a procedure for the City to recover promptly the amount of delinquent unpaid municipal charges in any manner permitted by law including, if necessary, legal proceedings;
B.
Whereas, the Municipal Claims Act[1] authorizes the adding to the amount of reasonable attorneys' fees to the total payable with respect to unpaid municipal claims, only if the municipality involved has approved by ordinance a schedule of reasonable attorney's fees; and
[1]
Editor's Note: See 53 P.S. § 7101 et seq.
C.
Whereas, the City has reviewed the subject of attorneys' fees for collection and enforcement matters and has determined that the fees set forth in the schedule hereby adopted are reasonable in amounts for the services herein described.
The City hereby approves the following schedule of attorney's fees for services in connection with the enforcement of an ordinance and the collection of charges and other items covered by the Municipal Claims Act, which is hereby determined to be fair and reasonable compensation for the services set forth below:
Legal Services | Fee For Services |
|---|---|
Standard collection letter | $35 |
Filing of municipal lien | $150 plus filing and service fees |
Municipal lien satisfaction | $100 |
Title search | Third party cost |
Preparation of Magisterial District Judge complaint | $50 plus filing and service fees |
Attendance at Magisterial District Judge hearing | $350 for single hearing $100 when multiple (3 or more) hearings are scheduled at or around the same time |
Installment payment agreement at taxpayer's request | $250 |
Services not covered above | Billed hourly at the current Solicitor's hourly rate |
This article shall apply to claims made or enforcement actions filed after the date of adoption.
If the provisions of this article conflict with any other laws or ordinances, the provisions of this article shall apply.