PennsylvaniaProposed law would allow approved fees for overdue local taxes
If enacted, the measure would let local tax collectors charge approved fees for certain overdue tax collection costs, with yearly records and a five-year limit on eligible costs.
What it does
Tax collectors, taxing districts, or designated private entities may charge reasonable fees for delinquency notices or similar collection steps, with governing-body approval and yearly accounting.
Taxpayers may not sue to recover certain fees for collection costs incurred before this provision takes effect; the text also does not authorize new fees for those earlier costs.
Collection of overdue per capita, poll, and occupation taxes may not be subject to a contingent-fee audit.
Argument forCollectors could recover reasonable notice costs, which may help local districts pursue unpaid taxes while yearly records track fees and a five-year limit bounds eligible costs.
Argument againstPeople behind on these taxes could face added collection fees, which may make it harder to pay what they owe.
More detail
A tax collector, taxing district, or designated private entity may charge a reasonable fee for certain costs of collecting overdue taxes. This applies to per capita, poll, and occupation taxes collected under the law. The fee may cover the cost of sending a delinquency notice or using a similar collection step, and the taxing district's governing body must approve it. A collector may keep fees it collects. The collector, district, or designated private entity must keep an itemized yearly account of fees collected. Fees may cover costs incurred during the five-year period that starts after the last day of the calendar year when the tax was due.
A delinquent taxpayer may not bring a civil case to recover, get a refund of, or remove certain fees for earlier collection costs. This applies to delinquent taxpayers and fees tied to costs incurred before the provision takes effect. The bar covers fees imposed on the taxpayer for costs incurred to collect that taxpayer's overdue per capita, poll, or occupation taxes before this provision takes effect. The text does not authorize adding fees for collection costs incurred before this provision takes effect. These limits apply to costs incurred before this provision takes effect.
Collection of these overdue taxes may not be subject to a contingent-fee audit. This applies to collection of delinquent per capita, poll, and occupation taxes. The act would take effect 60 days after enactment.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Oct 8Act No. 54 of 2026Latest
- Oct 8Approved by the Governor Josh ShapiroBecame Law
- Oct 7Presented to the GovernorTo Governor
- Oct 6Signed in Senate
- Vote recorded CONCURRENCE. Result: pass.Lower
- Vote recorded Committee vote (Rules): Re-report Bill As Committed. Result: pass.Lower
- Oct 6Signed in House
- Oct 6House concurred in Senate amendments
- Oct 6Re-reported on concurrence, as committedMinor
- Sep 30Referred to RulesMinor
- Sep 29Third consideration and final passagePassed Senate
- Vote recorded FINAL PASSAGE. Result: pass.Upper
- Jun 22Re-reported as committedMinor
- Vote recorded Committee vote (Appropriations): Re-Reported as Committed. Result: pass.Upper
- Jun 9Re-referred to AppropriationsMinor
- Jun 9Second considerationMinor
- Jun 3First considerationMinor
- Vote recorded Committee vote (Finance): Reported as Amended. Result: pass.Upper
- Vote recorded Committee vote (Finance): Adopt Amendment A02549. Result: pass.Upper
- Jun 3Reported as amendedMajor
- 2025
- Jun 9Referred to FinanceMinor
- Jun 3Third consideration and final passagePassed House
- Vote recorded FINAL PASSAGE. Result: pass.Lower
- Vote recorded Committee vote (Appropriations): Re-report Bill As Committed. Result: pass.Lower
- Jun 3Re-reported as committedMinor
- Jun 2Re-committed to AppropriationsMinor
- Vote recorded A746. Result: pass.Lower
- Vote recorded A744. Result: pass.Lower
- Vote recorded A743. Result: pass.Lower
- Jun 2Second consideration, with amendmentsMinor
- May 14Removed from table
- Apr 24Laid on the table
- Vote recorded Committee vote (Finance): Report Bill As Amended. Result: pass.Lower
- Vote recorded Committee vote (Finance): Adopt Amendment A00396. Result: pass.Lower
- Apr 24First considerationMinor
- Apr 24Reported as amendedMajor
- Mar 10Referred to FinanceIntroduced
Taxes & Budget