39 A.2d 271 | Pa. Super. Ct. | 1944
Argued April 11, 1944.
This case involves the interpretation to be given the Act of May 21, 1937, P.L. 787, as amended by the Acts of July 29, 1941, P.L. 600, and May 21, 1943, P.L. 282,
The city of Erie presented a petition to the court of common pleas asking approval of a compromise of delinquent taxes and municipal claims against the property of the heirs of Thomas Peplinski, located in the city of Erie, which had been purchased by the County Commissioners of Erie County at a sale by the county treasurer of that county for nonpayment of taxes, and on which the period of redemption had expired. The petition also asked approval of a private sale of said *566 property to George J. Auer and Leona Auer for an amount insufficient to pay all the unpaid tax and municipal claims against the property. Objections were filed by the school district of the city of Erie, and answer was made by the city. The court dismissed the objections, and by decree approved the compromise and directed conveyance of the property to the purchasers at private sale. The school district has appealed.
Taxes on the property in question became delinquent, and in August, 1940, it was sold by the county treasurer to the county commissioners. The redemption period had expired when the petition on behalf of the city of Erie was presented on October 7, 1943. Delinquent school taxes and costs amounted to $429.93, delinquent city taxes and costs, $351.80, delinquent county taxes and costs, $88.27. There was a lien for paving due the city in the amount of $1,131.01. The total delinquencies were $2,001.01. The proposed purchasers offered to buy the property for $1,000 in full compromise, settlement, and satisfaction of all delinquent taxes and municipal claims, together with penalties, interest, and costs due thereon.
The city's petition asserted that its paving lien should share pro rata with the taxes in the proceeds of the compromise as follows:
Percentages:
The City of Erie, for tax claims . . . . . . . . $175.81 17.581 The City of Erie, for municipal claim . . . . . . 565.21 56.522 The School District of The City of Erie . . . . . 214.86 21.485 The County of Erie . . . . . . . . . . . . . . . 44.12 4.412 ------- ------ $1,000.00 100.00
The contention of the school district was that the *567 municipal lien for paving could not participate in the distribution until taxes had been paid in full.1
The court below held that in a tax compromise proceeding under the act in question municipal liens were of equal dignity with taxes, and that distribution was to be on a pro rata basis.
It has long been the legislative intent to regard taxes as liens superior in point of payment to all other liens. Gordon,Secretary of Banking, v. Harrisburg et al.,
The Act of June 4, 1901, P.L. 364 (repealed and supplied), was a comprehensive law relating to liens for taxes, for municipal improvements, and for the removal of nuisances, and repealed many prior acts. Section 2 of the act provided that "all taxes which may hereafter be lawfully imposed or assessed on any property in this Commonwealth, in the manner and to the extent hereinafter set forth, shall be and they are hereby declared to be a first lien on said property . . . . . .; and such liens shall have priority to, and be fully paid and satisfied out of the proceeds of any judicial sale of said property before, any other obligation, judgment, claim, lien or estate with which the said property may become charged, or for which it may become liable, save and except only the costs of the sale and of the writ upon which it is made." Section 3 provided that municipal claims were a lien and had priority "save and except only the costs of the sale and of the writ upon which it is made, and the taxes imposed or assessed upon said property." Section 32 provided: "On any such [judicial] sale being made, all tax claims shall be paid out of the proceeds thereof first, the oldest *568 tax having priority, and municipal claims shall be paid next, the oldest in point of lien having priority."
The Municipal Lien Act of May 16, 1923, P.L. 207,2 section 2, 53 P. S. § 2022, provides that "All taxes which may hereafter be lawfully imposed or assessed on any property in this Commonwealth . . . . . . shall be and they are hereby declared to be a first lien on said property . . . . . .; and such liens shall have priority to and be fully paid and satisfied out of the proceeds of any judicial sale of said property . . . . . ., save and except only the costs of the sale and of the writ upon which it is made." Section 3 of the act, 53 P. S. § 2023, provides that "All municipal claims . . . . . . are hereby declared to be a lien on said property . . . . . .; and said liens shall have priority . . . . . . save and except only the costs of the sale and of the writ upon which it is made, and the taxes imposed or assessed upon said property." Section 31 of the act, 53 P. S. § 2051, contains the same provision as section 32 of the Act of June 4, 1901, P.L. 364.
The same legislative intent is expressed in the Act of May 29, 1931, P.L. 280, § 4, as amended by the Act of June 20, 1939, P.L. 498,
Following the Act of May 25, 1933, P.L. 1018,
The Act of June 26, 1939, P.L. 1100,
In the legislative session of 1941, in addition to the amendatory Act of July 29, 1941, P.L. 600,
The Joint Purchase Act of July 28, 1941, P.L. 536,
Finally, there is the Act of May 21, 1943, P.L. 364, § 1, reenacting and further amending section 17 of the Act of May 29, 1931, P.L. 280,
The Statutory Construction Act of May 28, 1937, P.L. 1019, § 51, 46 P. S. § 551, states: "The object of all interpretation and construction of laws is to ascertain and effectuate the intention of the Legislature." Section 52, 46 P. S. § 552, declares that "In ascertaining the intention of the Legislature in the enactment of a law, the courts may be guided by the following presumptions among others: (1) That the Legislature does not intend a result that is absurd, impossible of execution or unreasonable. . . . . .; (3) That the Legislature does not intend to violate the Constitution of the United States or of this Commonwealth." Sections 62, 46 P. S. § 562, also declares: "Laws or parts of laws are in pari materia when they relate to the same persons or things or to the same class of persons or things. Laws in pari materia shall be construed together, if possible, as one law."
In Big Black Creek Improvement Co. v. The Commonwealth,
"In Bell v. New York,
If we construe literally the words in the Act of 1941,
The construction given by the court below would produce an anomalous situation — one which we do not believe the legislature intended. It would give an equal status or rank to taxes and municipal claims under the Act of May 21, 1937, P.L. 787, as amended,
Although the legislature has the power to provide for priority or lien equality, in view of the expressed legislative intent, we will not place a municipal claim upon an equal basis with a tax claim in the absence of a plain legislative declaration of a change of policy.
The decree of the court below is reversed in so far as it relates to the distribution of the proceeds of sale; the record is remitted, with direction that distribution be made in accordance with this opinion. Appellee shall pay the costs.