NOVEMER 2014
RESOLUTION
APPROVING PENALTY, INTEREST AND FEE SCHEDULE FOR COLLECTION OF
DELINQUENT REAL ESTATE TAXES:
WHEREAS, it is necessary and prudent for North Penn School District to recover
promptly its levied and unpaid delinquent real estate taxes, and if necessary, to accomplish
such recovery through legal proceedings; and
WHEREAS, the Municipal Claims and Tax Liens Act, 53 P.S. §7101, et seq. (the
“MCTLA”), authorizes the addition of interest, costs, charges, expenses and fees, including
reasonable attorney fees, to the total payable with respect to unpaid taxes collected through the
MCTLA; and
WHEREAS, North Penn School District has determined that it is in the best interest of all
taxpayers and residents to enforce the payment of delinquent real estate taxes;
WHEREAS, North Penn School District has determined that the addition of interest,
costs, charges, expenses and fees to the total payable with respect to unpaid taxes where it is
permitted to do so pursuant to the MCTLA is reasonable and just; and
WHEREAS, Montgomery County through its resolution of September 2012 and any
subsequent amendments to the same (the “September Resolution”) has set the amount of
costs, charges, expenses and fees it imposes for the collection of delinquent taxes by the
Montgomery County Treasurer (the “County”) at 5% of the amount of the delinquent tax
(including interest and penalties) and the amount it will charge as reasonable counsel fees at
1% of the amount of delinquent taxes (including penalties and interest), and to the extent that
Montgomery County has imposed the same by legislative action, those charges, expenses and
fees are approved by the North Penn School District;
NOW THEREFORE, BE IT RESOLVED BY THE NORTH PENN SCHOOL DISTRICT
that the following resolution is hereby adopted:
1. In addition to any authorization to the Montgomery County Tax Claim Bureau for the
collection of taxes and institution of tax sales authorized by the Real Estate Tax Sales Law
(“RETSL”), 72 P.S. §5860.201 et seq, the Montgomery County Treasurer’s office (the
“County”) is appointed as alternative collector and is authorized and directed to file liens for
existing delinquent real estate taxes with the Prothonotary of Montgomery County in
accordance with the provisions of the Municipal Claims and Tax Liens Act, 53 P.S. §7101, et
seq. The County may utilize its Tax Claim Bureau to take any actions authorized by this
resolution.
2. In accordance with the MCTLA and RETSL, interest shall be charged on taxes so returned
from and after but not before the first day of the month following the return. Interest shall be
charged at the rate of nine per centum (9%) per annum;
3. Pursuant to Section 7106 of the MCTLA, the North Penn School District directs that the
County add any amounts – including any costs, charges, expenses and fees imposed, and
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the reasonable attorney’s fees – charged by the County for the collection of the North Penn
School District’s delinquent accounts to the delinquent tax lien amount. The County shall be
the sole collector of the delinquent taxes, together with all costs, charges, expenses, fees
and reasonable attorney’s fees. The above charges for attorney’s fees and for all charges,
expenses and fees set forth herein, shall be paid to the County of Montgomery through the
Montgomery County Tax Claim Bureau in lieu of the 5% payment pursuant to Section 207 of
RETSL;
4. The proper officials of the North Penn School District are hereby authorized and empowered
to take such additional action as they may deem necessary or appropriate to implement this
Resolution.
5. If any portion of this Resolution shall be held invalid or unconstitutional by and Court of
competent jurisdiction, such decision shall not affect any other portion of this Resolution so
long as it remains legally enforceable without the invalid portion. Should such Court
invalidate the imposition of costs, charges, expenses, fees or attorneys fees on delinquent
taxpayers in the manner set forth herein, the North Penn School District reserves its ability
to challenge the imposition and reasonableness the same.
6. Indemnification and Defense:
(a) The North Penn School District takes these actions and imposes these fees based upon
the assertion by the County that it has agreed to indemnify and defend the District in any
action stemming from the District’s adoption of this resolution.
(b) Specifically, the County has agreed it will be solely responsible for defending any action
brought against the District as a result of the District’s imposition of the within 5% charge
assessed by Montgomery County pursuant to the September Resolution, and the
County will be solely responsible for any repayments of any amounts with any interest
and costs should such repayment be ordered against the District by a court of competent
jurisdiction as a result of the court invalidating the collection scheme as set in this
resolution or the County’s September Resolution.
(c) Finally, the County has agreed that for any tax year in which it seeks to collect costs,
charges, expenses and fees as outlined in its September Resolution, the County will not
thereafter seek payment from the District of the 5% payment contemplated under
Section 207 of RETSL, despite any ruling by a court of competent jurisdiction that
invalidates the collection scheme outlined in the September Resolution or any
subsequently formulated similar scheme.
7. That all Resolutions inconsistent with the above provisions are repealed to the extent of their
inconsistency.
8. This Resolution shall become effective immediately upon approval.
9. This Resolution is enacted by North Penn School District under the authority of North Penn
School District Board of School Directors and any other applicable law arising under the
laws of the Commonwealth of Pennsylvania.
RESOLVED this ______________ day of ____________________________, 2014.
ATTEST:
NORTH PENN SCHOOL DISTRICT
________________________________
Board Secretary
By: __________________________________
Vince Sherpinsky, Board President
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