HomeMy WebLinkAbout80-581 HussieTO:
RE:
FACTS:
DISCUSSION:
Russell A. Davis
Chief Counsel
425 Main Capital
Harrrisburg, PA 17120
STATE ETHICS COMMISSION
308 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA 17120,
March 17, 1980
ADVICE OF CHIEF COUNSEL
Advice # 80 -581
Vincent J. Fumo
Senate Post Office
State Capital
Harrisburg, PA 17120
Edward C. Hussie
Chief Counsel to Majority Leader
House of Representatives
Commonwealth of Pennsylvania
Listing the Governmental Body as a Creditor Where there
is a Tax Delinquency
The Commission has received several inquiries over the
past few months as to whether a governmental bodies to whom
taxes are owed must be listed as creditors on the Financial
Interest Statement.
Section 5(b)(4) of the State Ethics Act requires
disclosure of:
The name and address of each creditor to whom
is owed in access of $5,000 and the interest
rate thereon. However, loans or credit extended
between members of the immediate family and
mortgages securing real property which is the
principal residence of the person filing or of
his spouse shall not be included.
While in the technical sense every governmental body
becomes a creditor upon issuing a tax bill, we hold that
the disclosure requirement is limited to those cases where
the governmental body is a judgment creditor against the
taxpayer, or where there exists a lien against the taxpayer's
property.
Davis, Fumo, Hussie
March 17, 1980
Page 2
For example, a timely appeal of an IRS deficiency would
not require the reporting of IRS as a creditor until a final
judicial determination is made and judgement is entered in
the Prothonotary's office. On the other hand, delinquent
real estate taxes automatically result in a lien being
placed against the realty such that the governmental body
to whom a real estate tax is owed would be reported if
the tax liability exceeds $5,000.
The disclosure requirement is met by stating the name.
of the governmental body, the name of the division of that
governmental body to whom the money is owed, and its address.
CONCLUSION:
DRM /rdp -2
Every public official, public employee, or candidate for
public office shall disclose the name and address of every
governmental body which is a judgment creditor of an amount
in excess of $5,000, or where the governmental body has placed
a lien against the taxpayer's property, the sum of which liens
on all properties and businesses owned by the taxpayer exceed
$5,000.
Pursuant to Section 7(9)(ii), this advice is a
complete defense in any enforcement proceeding initiated
by the Commission, and evidence of good faith conduct in
any other civil or criminal proceeding, providing the
requestor has disclosed truthfully all the material facts
and committed the acts complained of in reliance on the
advice given.
A personal appearance before the Commission and a
formal opinion will be issued upon your request if you
feel this reply does not suffice.
This letter is a public record and will be made
available as such.
Ai` ." , U MORR ON
Chief Counsel