Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H2883 Compare Versions

Only one version of the bill is available at this time.

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1	1	1 of 1
2	2	HOUSE DOCKET, NO. 3216 FILED ON: 1/20/2023
3	3	HOUSE . . . . . . . . . . . . . . . No. 2883
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	John J. Mahoney
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act relative to the improvement in the process for collecting delinquent municipal property
13	13	taxes.
14	14	_______________
15	15	PETITION OF:
16	16	NAME:DISTRICT/ADDRESS :DATE ADDED:John J. Mahoney13th Worcester1/17/2023Daniel M. Donahue16th Worcester1/26/2023 1 of 11
17	17	HOUSE DOCKET, NO. 3216 FILED ON: 1/20/2023
18	18	HOUSE . . . . . . . . . . . . . . . No. 2883
19	19	By Representative Mahoney of Worcester, a petition (accompanied by bill, House, No. 2883) of
20	20	John J. Mahoney and Daniel M. Donahue relative to the collection, assignment or transfer of
21	21	delinquent property taxes by cities and towns. Revenue.
22	22	[SIMILAR MATTER FILED IN PREVIOUS SESSION
23	23	SEE HOUSE, NO. 2994 OF 2021-2022.]
24	24	The Commonwealth of Massachusetts
25	25	_______________
26	26	In the One Hundred and Ninety-Third General Court
27	27	(2023-2024)
28	28	_______________
29	29	An Act relative to the improvement in the process for collecting delinquent municipal property
30	30	taxes.
31	31	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
32	32	of the same, as follows:
33	33	1 SECTION 1. Section 2 of chapter 60 of the General Laws, as appearing in the 2020
34	34	2Official Edition, is hereby amended by adding the following paragraph:-
35	35	3 The filing fees paid by any municipality for recording any documents pursuant to this
36	36	4chapter shall be $30.
37	37	5 SECTION 2. Subsection (c) of section 2C of said chapter 60, as so appearing, is hereby
38	38	6amended by striking out paragraph (1) and inserting in place thereof the following paragraph:-
39	39	7 (1) The sale of tax receivables shall be by public sale to the most responsible and
40	40	8responsive offeror taking into consideration the following evaluation criteria: (i) the price 2 of 11
41	41	9proposed by the offeror; (ii) the offeror’s qualifications and experience; (iii) the offeror’s plan for
42	42	10communicating with the taxpayers; (iv) whether the offeror has a regular place of business in the
43	43	11commonwealth; (v) whether the offeror is in good standing with the department of revenue; (vi)
44	44	12only those offerors that are licensed as debt collectors by the commonwealth shall be eligible to
45	45	13participate in this sale; and (vii) other criteria determined by the commissioner and the
46	46	14municipality. The sale shall provide for the option to purchase subsequent tax receivables subject
47	47	15to subsection (h) and any regulations that may be promulgated by the commissioner pursuant
48	48	16thereto.
49	49	17 SECTION 3. Said subsection (c) of said subsection 2C of said chapter 60, as so
50	50	18appearing, is hereby further amended by striking out paragraph (9) and inserting in place thereof
51	51	19the following paragraph:-
52	52	20 (9) A purchaser owning any tax receivable shall give notice to a taxpayer within 12
53	53	21business days of purchasing said tax receivable and to the appropriate municipality of the name,
54	54	22address, telephone number and preferred method of communication with said purchaser and any
55	55	23service agent acting on behalf of said purchaser within 12 business days of purchasing said tax
56	56	24receivable and where the land is residential such notice shall be served in the manner required by
57	57	25law for the service of subpoenas on witnesses in civil cases and shall include a uniform notice
58	58	26approved by the attorney general, in language understandable by a least sophisticated consumer,
59	59	27together with a notice in the 5 most common languages in the commonwealth that this notice
60	60	28affects important legal rights and should be translated immediately and such notice shall state:
61	61	29 (i) that a complaint to foreclose the tax title may be filed on or after a specific date;
62	62	30 (ii) that the tax title has been sold to a third party; 3 of 11
63	63	31 (iii) why the property was taken and that the owner may redeem the property and the date
64	64	32when the redemption period expires;
65	65	33 (iv) the components of the amount required to redeem the property and the procedure for
66	66	34redemption;
67	67	35 (v) that if a complaint to foreclose the tax title is filed and the owner does not respond by
68	68	36filing an answer the court may enter an order defaulting the order;
69	69	37 (vi) that if a complaint to foreclose the tax title is filed, the owner may respond by filing
70	70	38an answer that requests that the court set the terms by which the owner may redeem the property;
71	71	39 (vii) that if the property is not redeemed, the town or purchaser is entitled to receive an
72	72	40order from the land court that completes a transfer of ownership of the property to the town or
73	73	41purchaser and permanently eliminates any rights the owner has in the property;
74	74	42 (viii) that if the property is not redeemed, the property may be sold at auction and the
75	75	43owner will likely lose significant equity in the property, together with the name, address,
76	76	44telephone number and preferred method of communication with said purchaser and any service
77	77	45agent acting on behalf of said purchaser; and
78	78	46 (ix) that upon request by the taxpayer, the municipality shall furnish a copy of such
79	79	47information to the taxpayer within 12 business days of receiving such request.
80	80	48 Whenever the tax purchaser or the service agent of such tax receivables shall change, the
81	81	49new purchaser or service agent shall provide the notice required herein within 12 business days
82	82	50of the effective date of such change. 4 of 11
83	83	51 SECTION 4. Said section 2C of said chapter 60, as so appearing, is hereby further
84	84	52amended by adding the following subsection:-
85	85	53 (k) If the purchaser of a tax receivable on any parcel of real estate subsequently
86	86	54forecloses upon the property, it shall request that the land court approve all reasonable expenses
87	87	55it has incurred and shall provide a notice to the former owner of the right to redeem for this
88	88	56amount within 1 year. If the land is residential such notice shall be served in the manner required
89	89	57by law for the service of subpoenas on witnesses in civil cases and shall include a uniform notice
90	90	58approved by the attorney general, in language understandable by a least sophisticated consumer,
91	91	59together with a notice in the 5 most common languages in the commonwealth that this notice
92	92	60affects important legal rights and should be translated immediately and such notice shall state the
93	93	61following:- (i) that the land has been foreclosed upon and may be redeemed for a specific amount
94	94	62by a date certain that shall be listed, and shall attach all documents filed at land court related to
95	95	63the foreclosure of the property and (ii) that if it is not redeemed it will be sold at public auction.
96	96	64 If the land is redeemed, the foreclosing entity shall take whatever action is necessary to
97	97	65vacate and rescind the foreclosure in land court and record that the title has been redeemed by
98	98	66filing a document at the registry of deeds for the district in which the land lies entitled
99	99	67“Satisfaction of Tax Title Liability.”
100	100	68 If the land is not redeemed within 1 year, then the foreclosing entity shall publish a
101	101	69notice of auction of the land in each of 3 successive weeks, the first publication of which shall be
102	102	70not less than 21 days before the day of sale, in a newspaper published in the city or town where
103	103	71the land lies or in a newspaper with general circulation in the city or town where the land lies and
104	104	72notice of the sale has been sent by registered mail to the owner or owners of record. If the 5 of 11
105	105	73purchaser sells the land at auction, the balance of any proceeds above and beyond reasonable
106	106	74expenses as approved by the land court shall be equally divided between the owner and the
107	107	75municipality that sold the tax title with a detailed accounting of these expenses within 60 days of
108	108	76such sale.
109	109	77 SECTION 5. Section 16 of said chapter 60, as so appearing, is hereby amended by
110	110	78striking out, in lines 2 to 3, inclusive, the words “or arresting him for his tax”
111	111	79 SECTION 6. Said section 16 of said chapter 60, as so appearing, is hereby further
112	112	80amended by striking out the seventh sentence and inserting in place thereof the following
113	113	81sentence:- Demand shall be made by the collector by mailing the same to the last or usual place
114	114	82of business or abode, or to the address best known to him or her, and failure to receive the same
115	115	83shall not invalidate a tax or any proceedings for the enforcement or collection of the same;
116	116	84provided, that if the land is residential a uniform notice approved by the attorney general, in
117	117	85language understandable by a least sophisticated consumer, together with a notice in the 5 most
118	118	86common languages in the commonwealth shall be used that states that this notice affects
119	119	87important legal rights and should be translated immediately, and provides clear notice that the
120	120	88non-payment of property taxes can result in the taking of the property and that the property
121	121	89owner may be eligible for exemptions, abatements and tax deferrals and other assistance and
122	122	90should contact the collector of taxes office together with the address, telephone number, email
123	123	91address, if available, and internet address for further information.
124	124	92 SECTION 7. Said chapter 60 is hereby further amended by striking out section 52 and
125	125	93inserting in place thereof the following section:- 6 of 11
126	126	94 Section 52. Cities and towns may make regulations for the possession, management and
127	127	95sale of land purchased or taken for taxes, not inconsistent with law, regulations promulgated by
128	128	96the department of revenue or the right of redemption. The treasurer of any city or town holding 1
129	129	97or more tax titles may assign and transfer such tax title or titles, individually or bundled, to the
130	130	98highest bidder after a public auction, after having given 60 days' notice of the time and place of
131	131	99such public auction by publication, which shall conform to the requirements of section 40, and
132	132	100having posted such notice in 2 or more convenient and public places in said city or town,
133	133	101provided that the sum so paid for such assignment is not less than the amount necessary for
134	134	102redemption, and may execute and deliver on behalf of the city or town any instrument necessary
135	135	103therefor. Only those bidders that are licensed as debt collectors by the commonwealth shall be
136	136	104eligible to participate in this sale. Regardless of whether the assignment is pursuant to this
137	137	105section or section 2C, the treasurer shall send notice of the intended assignment to the owner of
138	138	106record of each parcel at his or her last known address not less than 10 days prior to the
139	139	107assignment, where the land is residential such notice shall be served in the manner required by
140	140	108law for the service of subpoenas on witnesses in civil cases and shall include a uniform notice
141	141	109approved by the attorney general, together with a notice in the 5 most common languages in the
142	142	110commonwealth that this notice affects important legal rights and should be translated
143	143	111immediately in language understandable by a recipient with a least sophisticated consumer that
144	144	112the treasurer intends to sell the tax title to the homeowner's property and provides clear notice
145	145	113that the non-payment of property taxes can result in the loss of the property and that the property
146	146	114owner may be eligible for exemptions, abatements and tax deferrals and other assistance and
147	147	115should contact the collector of taxes office together with the telephone number, email address, if
148	148	116available, and internet address for further information. 7 of 11
149	149	117 The instrument of assignment shall be in a form approved by the commissioner and shall
150	150	118be recorded within 60 days from its date and if so recorded shall provide a rebuttable
151	151	119presumption as to all facts essential to its validity. The instrument of assignment shall, for each
152	152	120parcel assigned thereunder, state the amount for which the tax title on the parcel could have been
153	153	121redeemed on the date of the assignment, separately stating for each parcel the principal amount
154	154	122and the total interest accrued until the date of assignment. The principal amount shall be the sum
155	155	123of the amounts for which the parcel was taken and amounts subsequently certified under section
156	156	12461 and costs of service if applicable.
157	157	125 Except as hereinafter otherwise provided, all provisions of law applicable in cases where
158	158	126the original purchaser at a tax sale (“tax purchaser”) is another than the city or town shall
159	159	127thereafter apply in the case of such an assignment, as if the assignee had been a purchaser for the
160	160	128original sum at the original sale or at a sale made at the time of the taking and had paid to the city
161	161	129or town the subsequent taxes and charges included in the sum paid for the assignment. Any
162	162	130extension of the time within which foreclosure proceedings may not be instituted granted by a
163	163	131municipality’s treasurer prior to assignment shall be included in the language of sale and be
164	164	132binding upon the assignee. If the land is not redeemed within 1 year, then the tax purchaser shall
165	165	133publish a notice of auction of the land in each of 3 successive weeks, the first publication of
166	166	134which shall be not less than 21 days before the day of sale, in a newspaper published in the city
167	167	135or town where the land lies or in a newspaper with general circulation in the city or town where
168	168	136the land lies and notice of the sale has been sent by registered mail to the owner or owners of
169	169	137record. If the tax purchaser sells the land at auction, the balance of any proceeds above and
170	170	138beyond reasonable expenses as approved by the land court shall be divided as follows: a third to
171	171	139the tax purchaser up to fifty thousand dollars ($50,000), the rest equally divided between the 8 of 11
172	172	140owner and the municipality that sold the tax title with a detailed accounting of these expenses
173	173	141within 60 days of such sale. If the land is redeemed, the foreclosing entity shall take whatever
174	174	142action is necessary to vacate and rescind the foreclosure in land court and record that the title has
175	175	143been redeemed by filing a document at the county registry of deeds entitled “Satisfaction of Tax
176	176	144Title Liability”.
177	177	145 SECTION 8. Section 53 of said chapter 60, as so appearing, is hereby amended by
178	178	146inserting after the word “published,” , in line 4, inclusive, the following words:- where the land is
179	179	147residential such notice shall be served in the manner required by law for the service of subpoenas
180	180	148on witnesses in civil cases and published.
181	181	149 SECTION 9. Said section 53 of said chapter 60, as so appearing, is hereby further
182	182	150amended by adding the following paragraph:-
183	183	151 Where the land is residential all notices sent pursuant to this section shall include a
184	184	152uniform notice approved by the attorney general, together with a notice in the five most common
185	185	153languages in the commonwealth that this notice affects important legal rights and should be
186	186	154translated immediately. Such notice shall state in language understandable by a least
187	187	155sophisticated consumer:
188	188	156 (i)That a complaint to foreclose the tax title may be filed on or after a specific date;
189	189	157 (ii)That the tax title may be sold to a third party;
190	190	158 (iii)Why the property was taken and that the owner may redeem the property and the date
191	191	159when the redemption period expires; 9 of 11
192	192	160 (iv)The components of the amount required to redeem the property and the procedure for
193	193	161redemption;
194	194	162 (v)That if a complaint to foreclose the tax title is filed and the owner does not respond by
195	195	163filing an answer the court may enter an order defaulting the order;
196	196	164 (vi)That if a complaint to foreclose the tax title is filed, the owner may respond by filing
197	197	165an answer that requests that the court set the terms by which the owner may redeem the property;
198	198	166 (vii)That if the property is not redeemed, the town or purchaser is entitled to receive an
199	199	167order from the land court that completes a transfer of ownership of the property to the town or
200	200	168purchaser and permanently eliminates any rights the owner has in the property; and
201	201	169 (viii)That if the property is not redeemed, the property may be sold at auction and the
202	202	170owner will likely loses significant equity in the property.
203	203	171 SECTION 10. Said chapter 60 is hereby further amended by striking out subsection 62A
204	204	172and inserting in place thereof the following section:-
205	205	173 Section 62A. Municipalities may by bylaw or ordinance authorize payment agreements
206	206	174between the treasurer and persons entitled to redeem parcels in tax title. Such agreements shall
207	207	175be for a maximum term of no more than 10 years and may waive not more than 50 per cent of
208	208	176the interest that has accrued on the amount of the tax title account unless someone aged 60 or
209	209	177older or whose primary source of income is disability benefits is on the deed for the parcel and
210	210	178the parcel is his or her primary residence, in which case 75 percent of the interest that has
211	211	179accrued on the amount of the tax title may be waived, subject to such lower limit as the
212	212	180ordinance or bylaw may specify. An ordinance or bylaw under this section shall provide for such 10 of 11
213	213	181agreements and waivers uniformly for classes of tax titles defined in the ordinance or bylaw. Any
214	214	182such agreement must require a minimum payment at the inception of the agreement of 25 percent
215	215	183of the amount needed to redeem the parcel unless someone aged 60 or older or whose primary
216	216	184source of income is disability benefits is on the deed for the parcel and the parcel is his or her
217	217	185primary residence, in which case the minimum payment shall be no less than 10 percent of the
218	218	186amount needed to redeem the parcel of the interest that has accrued on the amount of the tax title
219	219	187may be waived, subject to such lower limit as the ordinance or bylaw may specify. During the
220	220	188term of the agreement the treasurer may not bring an action to foreclose the tax title unless
221	221	189payments are not made in accordance with the schedule set out in the agreement or timely
222	222	190payments are not made on other amounts due to the municipality that are a lien on the same
223	223	191parcel.
224	224	192 SECTION 11. Said chapter 60 is hereby further amended by striking out section 64 and
225	225	193inserting in place thereof the following section:-
226	226	194 Section 64. The title conveyed by a tax collector's deed or by a taking of land for taxes
227	227	195shall be absolute after foreclosure of the right of redemption by decree of the land court as
228	228	196provided in this chapter. The land court shall have exclusive jurisdiction of the foreclosure of all
229	229	197rights of redemption from titles conveyed by a tax collector's deed or a taking of land for taxes,
230	230	198in a proceeding provided for in sections 65 to 75, inclusive. Except if the title was conveyed to a
231	231	199third party pursuant to section 2C or 52 then the title may be redeemed within 1 year of the
232	232	200foreclosure. 11 of 11
233	233	201 SECTION 12. Section 65 of said chapter 60, as so appearing, is hereby amended by
234	234	202striking out, in line 4, the words “after six months,” and inserting in place thereof the following
235	235	203words:- after 12 months.