Massachusetts House Bill H4624

Massachusetts 2023-2024 Regular Session

• Introduced: 5/9/24
• Refer: 5/9/24
• Refer: 5/13/24
• Report Pass: 6/25/24
• Refer: 6/26/24

Caption

Relative to municipal tax lien procedures and protections for property owners in the Commonwealth

Impact

The proposed legislation is expected to significantly alter existing state laws related to how tax liens are processed and the rights of property owners facing foreclosure. A key feature of the bill is the establishment of clearer guidelines regarding notifications that municipalities must send to taxpayers. Important notices regarding impending foreclosure and the rights of homeowners to redeem their properties are now mandated to be delivered in a manner that is understandable to the average consumer. The bill further stipulates that these notices need to be filed in multiple languages to ensure accessibility and comprehension by all residents.

Summary

House Bill 4624 addresses municipal tax lien procedures and aims to enhance protections for property owners in the Commonwealth of Massachusetts. The bill introduces changes to the definitions used within municipal tax law, specifically relating to 'excess equity'. This term defines the surplus amount above the taxes owed after property sales due to tax liens, detailing how such excess should be handled post-foreclosure. The intention is to ensure that former property owners are allowed to reclaim any equity they may have lost, thus enhancing their rights and protections during tax enforcement processes.

Contention

Notably, the bill may encounter opposition regarding its potential impact on municipal revenue collections from property taxes. Critics may argue that increased protections could incentivize non-payment of taxes, undermining local governments' ability to fund services effectively. Moreover, the introduction of a Tax Lien Commission to study the practices surrounding delinquent property tax collections suggests that there could be broader systemic changes based on the commission's findings, which may provoke debate among stakeholders. The bill attempts to balance the rights of homeowners against the necessary financial interests of municipalities, reflecting an ongoing dialogue about equitable tax practices.