On July 11, 2022, Governor Tom Wolf signed Act 57 of 2022 amending the Local Tax Collection Law.
Prior to Act 57, a taxpayer who claimed they did not receive notice of their real estate taxes was not relieved from paying the penalty, fee, interest, or other charges that may have accrued as a result of their failure to pay in a timely manner.
Act 57 now requires school districts to waive the penalty, fee, interest, or other charges when new homeowners do not receive a bill notice within the first year of owning a property. Additionally, Act 57 requires the Department of Community and Economic Development to create and distribute a form allowing taxpayers to formally request a waiver of the additional charges accrued for lack of payment.
Act 57 will go into effect on October 11, 2022.
In order for a taxpayer to qualify for a waiver, they must attest they did not receive notice; provide proof of the property transfer1 occurring within the previous twelve months to the tax collector; provide a waiver request to the tax collector; and provide payment of the face value of the taxes.
Bottom Line for Schools
Pursuant to Act 57, a school district must adopt a resolution within 90 days of the effective date, October 11, 2022. Accordingly, on or before January 7, 2023, a resolution must be passed requiring a tax collector to waive additional charges for taxpayers who have purchased a home within the previous twelve months and have not received their tax bill in the mail.
It is important to note, this resolution will only allow for the waiver of the penalty, fee, interest, or other charges accumulated as a result of late payments but does not allow for the taxpayer to benefit from the discounted amount.
These waivers are applicable for taxes assessed in the first tax year after October 11, 2022, the effective date of Act 57. For most schools, this means it will not apply until the 2023-2024 school tax year.
A standardized waiver request form will be created and distributed by the Department of Community and Economic Development, which will then be distributed to school districts and their tax collectors through Pennsylvania’s State Tax Collectors’ Association.
Schools with questions should contact their legal counsel or an education attorney at KingSpry.