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