Department of Revenue proposes statewide online tax-lien repository to streamline filings

The Department of Revenue told the House Finance Committee that House Bill 26-10 would modernize lien filings by posting tax liens and satisfactions to a centralized, searchable repository on the department’s website instead of filing in county prothonotaries across the Commonwealth.

"We file anywhere between 25 to 35,000 liens per year in the Commonwealth," said Mark Marabito, special adviser to the deputy secretary for compliance and collections, describing significant operational complexity caused by variable county docketing formats and fee structures. Marabito said the bill would allow the department to post liens online, generate PDFs of liens and satisfactions, and stop charging filing or satisfaction fees to taxpayers.

Marabito warned the committee that counties currently receive between $1.5 million and $2 million a year in lien-filing fees and that the bill therefore authorizes the department to average the last three fiscal years of those fees and continue payments to counties "so as to not impact the county's fiscal" position. The bill sets a transition date: the department would implement the repository beginning 01/01/2028 to allow for system customization and staff adjustments.

Members pressed the department on access, error handling and costs. Representative Rossi asked who would have access; Marabito said the repository "would be on our website and be free to be searched by anyone," and that taxpayers would still receive mailed copies. When Rossi asked how quickly a satisfied lien would be reflected, Marabito said it would appear within 24 hours and that errors should be reported to the department’s call center or lien unit for correction.

Committee members also asked whether there were upfront costs. Marabito said there should be no direct upfront cost to the Commonwealth beyond staff time and vendor work tied to the department’s existing tax software; savings would accrue over time by capping future county fee growth and redeploying staff no longer needed for manual docketing. He noted that other states have pursued similar repositories and that Illinois continues to pay counties after transition while Mississippi does not.

The committee did not vote on the bill during the session; members were invited to submit further questions to the chairs in advance of a future vote.