Explanation of Real Estate Tax
and Municipal Charge Information

Real Estate Taxes
Real Estate taxes are assessed each year on property. The amount of tax due is calculated by multiplying the tax rate by the assessed value of the property. The tax rate is set by the appropriate governing body. An assessed value is assigned by the county Tax Assessor. The assessed value may not be the actual market value of the property. The total assessed value consists of the assessed value of the land and the assessed value of the buildings (or improvements) on the land.

Most tax rates are determined as a millage rate meaning that the rate posted is the amount due for every one thousand dollars ($1000.00) of assessed value. There may be different rates for the assessed value of the land and the assessed value of the buildings on the land.

Generally there are three main types of real estate taxes: County taxes, Municipal taxes, and School taxes. Additional real estate taxes may be assessed for specific purposes, such as, a library tax, a fire district tax, or an open space tax. For the purposes of determining the total tax due, these special purpose taxes are usually totaled into the three main tax types.

A complete tax search will provide information on all of the following

• County Taxes, which are assessed annually on a calendar year basis and are generally collected by the local tax collector; however there are some exceptions whereby the county taxes are collected directly by county departments (likely being the County Treasurer). 

• Delinquent County Taxes are county taxes that were not paid during the year the tax was assessed. These delinquent taxes are usually forwarded (returned) to the County Tax Claim Bureau for collection; however some tax collectors will collect delinquent taxes for a year or more before sending a delinquent tax return to the Tax Claim Bureau. Be aware that Tax Collector is an elected office and can change over time. If the Tax Collector has changed, you will need to contact the previous Tax Collector to be sure that they are no longer collecting for previous year taxes.

Additionally, some delinquent taxes are collected by private collection agencies. If a private collection agency is collecting for delinquent taxes, requests for information need to be directed to all collection entities, including the Tax Collectors, the Tax Claim Bureau, and the private Collection Agencies. 

• Municipal Taxes (also called Township taxes, Borough taxes, or City taxes) are assessed annually on a calendar year basis and are collected by the local tax collector.

Delinquent Municipal Taxes are municipal taxes that were not paid during the year the tax was assessed. These delinquent taxes are also usually forwarded (returned) to the County Tax Claim Bureau for collection. Again, some tax collectors will collect delinquent taxes for a year or more before sending a delinquent tax return to the Tax Claim Bureau. Be aware that Tax Collector is an elected office and can change over time. If the Tax Collector has changed, you will need to contact the previous Tax Collector to be sure that they are no longer collecting for previous year taxes.

Like delinquent county taxes, some delinquent municipal taxes are collected by private collection agencies. This may be separate collection agency than is used for delinquent county taxes. If a private collection agency is collecting for delinquent taxes, requests for information need to be directed to all collection entities, including the Tax Collectors, the Tax Claim Bureau, and the private Collection Agencies.  

• School Taxes are generally assessed on a fiscal year being July 1 to June 30; however be aware that some school districts assess school taxes annually on a calendar year basis. School taxes are also generally collected by the local tax collector. There are some exceptions whereby the school taxes are collected directly by the school district or by a private collection agency. Although rare, be aware that there may be multiple school districts in a municipality.

Delinquent School Taxes are school taxes that were not paid during the year the tax was assessed. These delinquent taxes are usually forwarded (returned) to the County Tax Claim Bureau for collection; however some tax collectors will collect delinquent taxes for a year or more before sending a delinquent tax return to the Tax Claim Bureau. Be aware that Tax Collector is an elected office and can change over time. If the Tax Collector has changed, contact the previous Tax Collector to be sure that they are no longer collecting for previous year taxes.

Delinquent school taxes can also be collected by private collection agencies. This may be separate collection agency than is used for delinquent county or municipal taxes. If a private collection agency is collecting for delinquent taxes, requests for information need to be directed to all collection entities, including the Tax Collectors, the Tax Claim Bureau, and the private Collection Agencies.  

• Tax Claims are the delinquent taxes that have been forwarded (returned) to the County Tax Claim Bureau for collection. The Tax Claim Bureau has statutory authority to sell the property in an effort to pay the delinquent taxes.

Generally the major types of services provided include: Rubbish services, Recycling services, Water services, Sewer services and to a lesser extent Gas and Electric services. These services can also be provided by a private service or utility company. These private companies do not have any right to file municipal liens unless they are contracted by the municipality or its municipal authority. We do not gather information from these private companies for our search if they cannot lien the property for their services. If you are not sure if these companies are private or are municipal authorities, you will need to ask if they are permitted to file municipal lien on properties when their bills are unpaid.

A complete search will provide all current and delinquent charges for services provided by the municipalities or their respective authorities. Delinquent charges that remain unpaid may give rise to a municipal lien that can be filed against the property. Municipal liens should be disclosed by a title search.

The municipality or authority could choose to hire a private collection agency to collect for delinquent charges. You may need to contact these private Collection Agencies to obtain the delinquent amounts due.

Liberty Bell Agency is pleased to be able to provide complete Tax Search & Municipal Certification Services for your transactions. Contact us today and allow us to do all the legwork for you. We hope we can be of service and look forward to hearing from you soon.