Pennsylvania Act 1937-493 — POLITICAL SUBDIVISIONS SET - OFF DELINQUENT TAXES AGAINST CLAIMS

Act text

POLITICAL SUBDIVISIONS SET - OFF DELINQUENT TAXES AGAINST CLAIMS
                 Act of Jul. 1, 1937, P.L. 2611, No. 493              Cl. 53
         (Act reenacted and amended Apr. 15, 1943, P.L.53, No.32)

                                  AN ACT

     Authorizing political subdivisions, other than cities of the
        first class, to set-off delinquent taxes, municipal claims
        and judgments held thereby, and penalties, interest, and cost
        due thereon, against claims and accounts due by such
        political subdivisions, and providing a procedure therefor.

        Section 1.  Be it enacted, &c., That the word "person" as
     used in this act shall be construed to include any individual,
     association, copartnership, and corporation.
        The term "delinquent taxes and municipal claims," as used in
     this act, shall include all delinquent taxes and municipal
     claims, whether or not liens for such taxes or claims have been
     filed in the office of the prothonotary of the county, and shall
     include also all penalties, interest, and costs due on such
     delinquent taxes and municipal claims.
        The term "political subdivision," as used in this act, means
     county, city, other than city of the first class, borough, town,
     township, poor district, institution district and school
     district within the Commonwealth.
        Section 2.  Every political subdivision, before approving or
     paying the claim or account of any person against such political
     subdivision, shall have power to inquire of the receiver of
     taxes of the political subdivision whether such person is
     indebted to it for or on account of any delinquent taxes or
     municipal claims. In any case where it shall be found that such
     person is so indebted to the political subdivision, or when such
     person is indebted to the political subdivision for any sum of
     money, which debt shall have been reduced to judgment in favor
     of such political subdivision, the approval and payment of such
     claim or account in whole or in part shall be withheld by the
     officer or employe authorized by law to make such approval or
     payment, until such person shall have entered into an agreement
     with the political subdivision as hereinafter provided.
        Section 3.  The political subdivision shall have power to
     enter into such agreements as it may deem necessary to assure
     the payment of delinquent taxes and municipal claims and unpaid
     judgments, interest, and costs thereon by persons having claims
     or accounts against the political subdivision, including therein
     provision for the application of moneys due by the political
     subdivision on any such claim or account to the payment of such
     delinquent taxes, municipal claims and unpaid judgments,
     interest, and costs and the satisfaction of such taxes,
     municipal claims and judgments, interest, and costs on the
     public records in whole or in part. If any person shall, upon
     demand of the political subdivision, refuse to enter into any
     such agreement, the officer or employe of the political
     subdivision authorized to approve or pay such accounts shall
     continue to further withhold his approval or payment of such
     claim or account against the political subdivision or any part
     thereof, and advise such person that the political subdivision
     has a set-off against his claim or account or the part thereof
     not approved or paid for delinquent taxes, municipal claims, or
     a judgment or judgments held against such person and the
     interest and costs thereon, and that payment thereof will be
     refused until such delinquent taxes, municipal claims or
     judgments with the interest and costs thereon are paid or
     provision for their payment made.
        Section 4.  If any person who is indebted to the political
     subdivision on account of delinquent taxes, municipal claims or
     judgment as aforesaid, and who has a claim or account against
     such political subdivision, shall, upon demand of the political
     subdivision, refuse, neglect or fail to enter into an agreement
     as hereinbefore provided, such political subdivision may
     petition the court of common pleas of the county, setting forth
     the facts of the case and asking for a rule to show cause why a
     decree should not be made that the amount of such delinquent
     taxes, municipal claim or judgment owing to the political
     subdivision, be set-off against the claim or account which such
     person has against the political subdivision, or against the
     proceeds of any judgment secured thereon. Thereupon the court
     shall grant a rule against all parties interested to appear and
     show cause why such a decree should not be made. The rule shall
     be returnable in not less than ninety (90) days from the date
     the petition was presented. If, during such period, prior to the
     return of such rule, the said person having such claim or
     account against the political subdivision shall enter into an
     agreement therewith, satisfactory to the political subdivision,
     the said proceedings upon notice given to the said court shall
     terminate.
        Section 5.  If, upon hearing, the court is satisfied that
     service of the rule has been made upon the parties interested,
     and that the facts stated in the petition are true, it shall
     order and decree that the amount of delinquent taxes, municipal
     claims and judgments owing to the said political subdivision by
     the said person having a claim or account against such political
     subdivision, shall be set-off against such claim or account and
     against the proceeds of any judgment secured thereon. The court
     shall in its order determine by whom the costs of the
     proceedings shall be paid.
        Section 6.  All acts and parts of acts inconsistent with this
     reenactment and amendment are hereby repealed.
        Section 7.  This reenactment and amendment shall become
     effective immediately upon its final enactment.