Attorney’s Fees Collectable in Tax Sale

Cozen O'Connor
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A panel of The Commonwealth Court of Pennsylvania held that attorney’s fees are collectable in a tax sale, notwithstanding that Act 2003-20, which authorized the collection of reasonable attorney’s fees, was retroactive to 1996. Iacurci v. County of Allegheny, No. 1886 C.D. 2014 (Pa. Commw. May 14, 2014). In 1996, the General Assembly amended the Municipal Claims and Tax Lien Act to authorize the collection of reasonable attorney’s fees for municipal claims. However, the expanded authorization did not extend to the collection of municipal taxes. Pentlong Corp. v. GLS Capital, Inc., 820 A.2d 1240 (Pa. 2003). Act 2003-20 extended the authority to tax liens, retroactively. The Commonwealth Court held that Act 2003-20 did not impose new taxes; it authorized additional costs of collection. Thus, cases limiting retroactive taxation were not applicable. Neither did the Act constitute a violation of due process nor an unjust taking of property.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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