Massachusetts 2023-2024 Regular Session

Massachusetts Senate Bill S2391 Compare Versions

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1	1	1 of 11
2	2	SENATE . . . . . . . . . . . . . . No. 2391
3	3	Senate, May 25, 2023 -- Text of amendment (820) (offered by Senator Montigny) to the Ways
4	4	and Means amendment (Senate, No. 3) to the House Bill making appropriations for the fiscal
5	5	year 2024 for the maintenance of the departments, boards, commissions, institutions, and certain
6	6	activities of the Commonwealth, for interest, sinking fund, and serial bond requirements, and for
7	7	certain permanent improvements.
8	8	The Commonwealth of Massachusetts
9	9	_______________
10	10	In the One Hundred and Ninety-Third General Court
11	11	(2023-2024)
12	12	_______________
13	13	1 by inserting after section ___ the following sections:-
14	14	2 “SECTION ___. Section 2 of chapter 60 of the General Laws, as appearing in the 2020
15	15	3Official Edition, is hereby amended by adding the following paragraph:-
16	16	4 The filing fees paid by any municipality for recording any documents pursuant to this
17	17	5chapter shall be $30.
18	18	6 SECTION ___. Subsection (c) of section 2C of said chapter 60, as so appearing, is hereby
19	19	7amended by striking out paragraph (1) and inserting in place thereof the following paragraph:-
20	20	8 (1) The sale of tax receivables shall be by public sale to the most responsible and
21	21	9responsive offeror taking into consideration the following evaluation criteria: (i) the price
22	22	10proposed by the offeror; (ii) the offeror’s qualifications and experience; (iii) the offeror’s plan for
23	23	11communicating with the taxpayers; (iv) whether the offeror has a regular place of business in the
24	24	12commonwealth; (v) whether the offeror is in good standing with the department of revenue; (vi)
25	25	13only those offerors that are licensed as debt collectors by the commonwealth shall be eligible to 2 of 11
26	26	14participate in this sale; and (vii) other criteria determined by the commissioner and the
27	27	15municipality. The sale shall provide for the option to purchase subsequent tax receivables subject
28	28	16to subsection (h) and any regulations that may be promulgated by the commissioner pursuant
29	29	17thereto.
30	30	18 SECTION ___. Said subsection (c) of said subsection 2C of said chapter 60, as so
31	31	19appearing, is hereby further amended by striking out paragraph (9) and inserting in place thereof
32	32	20the following paragraph:-
33	33	21 (9) A purchaser owning any tax receivable (“tax purchaser”) shall give notice to a
34	34	22taxpayer within 12 business days of purchasing said tax receivable and to the appropriate
35	35	23municipality of the name, address, telephone number and preferred method of communication
36	36	24with said purchaser and any service agent acting on behalf of said purchaser within 12 business
37	37	25days of purchasing said tax receivable and where the land is residential such notice shall be
38	38	26served in the manner required by law for the service of subpoenas on witnesses in civil cases and
39	39	27shall include a uniform notice approved by the attorney general, in language understandable by a
40	40	28least sophisticated consumer, together with a notice in the 5 most common languages in the
41	41	29commonwealth that this notice affects important legal rights and should be translated
42	42	30immediately and such notice shall state:
43	43	31 (i) that a complaint to foreclose the tax title may be filed on or after a specific date;
44	44	32 (ii) that the tax title has been sold to a third party;
45	45	33 (iii) why the property was taken and that the owner may redeem the property and the date
46	46	34when the redemption period expires; 3 of 11
47	47	35 (iv) the components of the amount required to redeem the property and the procedure for
48	48	36redemption;
49	49	37 (v) that if a complaint to foreclose the tax title is filed and the owner does not respond by
50	50	38filing an answer the court may enter an order defaulting the owner;
51	51	39 (vi) that if a complaint to foreclose the tax title is filed, the owner may respond by filing
52	52	40an answer that requests that the court set the terms by which the owner may redeem the property;
53	53	41 (vii) that if the property is not redeemed, the town or tax purchaser is entitled to receive
54	54	42an order from the land court that completes a transfer of ownership of the property to the town or
55	55	43said purchaser and permanently eliminates any rights the owner has in the property;
56	56	44 (viii) that if the property is not redeemed, the property may be sold at auction and the
57	57	45owner will likely lose significant equity in the property, together with the name, address,
58	58	46telephone number and preferred method of communication with said purchaser and any service
59	59	47agent acting on behalf of said purchaser; and
60	60	48 (ix) that upon request by the taxpayer, the municipality shall furnish a copy of such
61	61	49information to the taxpayer within 12 business days of receiving such request.
62	62	50 Whenever the tax tax purchaser or the service agent of such tax receivables shall change,
63	63	51the new purchaser or service agent shall provide the notice required herein within 12 business
64	64	52days of the effective date of such change.
65	65	53 SECTION ___. Said section 2C of said chapter 60, as so appearing, is hereby further
66	66	54amended by adding the following subsection:- 4 of 11
67	67	55 (k) If the purchaser of a tax receivable on any parcel of real estate subsequently
68	68	56forecloses upon the property, it shall request that the land court approve all reasonable expenses
69	69	57it has incurred and shall provide a notice to the former owner of the right to redeem for this
70	70	58amount within 1 year. If the land is residential such notice shall be served in the manner required
71	71	59by law for the service of subpoenas on witnesses in civil cases and shall include a uniform notice
72	72	60approved by the attorney general, in language understandable by a least sophisticated consumer,
73	73	61together with a notice in the 5 most common languages in the commonwealth that this notice
74	74	62affects important legal rights and should be translated immediately and such notice shall state the
75	75	63following:- (i) that the land has been foreclosed upon and may be redeemed for a specific amount
76	76	64by a date certain that shall be listed, and shall attach all documents filed at land court related to
77	77	65the foreclosure of the property and (ii) that if it is not redeemed it will be sold at public auction.
78	78	66 If the land is redeemed, the foreclosing entity shall take whatever action is necessary to
79	79	67vacate and rescind the foreclosure in land court and record that the title has been redeemed by
80	80	68filing a document at the registry of deeds for the district in which the land lies entitled
81	81	69“Satisfaction of Tax Title Liability.”
82	82	70 If the land is not redeemed within 1 year, then the foreclosing entity shall publish a notice
83	83	71of auction of the land in each of 3 successive weeks, the first publication of which shall be not
84	84	72less than 21 days before the day of sale, in a newspaper published in the city or town where the
85	85	73land lies or in a newspaper with general circulation in the city or town where the land lies and
86	86	74notice of the sale has been sent at least 14 days prior to the date of sale by registered mail to the
87	87	75owner or owners of record of the last deed prior to the tax taking, to the address set forth in
88	88	76section 61 of chapter 185, if the land is then registered or, in the case of unregistered land, to the
89	89	77address of the owner or owners as given on the deed or on the petition for probate by which the 5 of 11
90	90	78owner or owners acquired title, if any, or if in either case no owner appears, then mailed by
91	91	79registered mail to the address to which the tax collector last sent the tax bill for the premises
92	92	80scheduled to be sold.
93	93	81 If the tax purchaser sells the land at auction, the balance of any proceeds above and
94	94	82beyond reasonable expenses as approved by the land court shall be returned to the former owner.
95	95	83A detailed accounting of these expenses will be provided by the tax purchaser within 60 days of
96	96	84such sale.
97	97	85 SECTION ___. Section 16 of said chapter 60, as so appearing, is hereby amended by
98	98	86striking out, in lines 2 to 3, inclusive, the words “or arresting him for his tax”
99	99	87 SECTION ___. Said section 16 of said chapter 60, as so appearing, is hereby further
100	100	88amended by striking out the seventh sentence and inserting in place thereof the following
101	101	89sentence:- Demand shall be made by the collector by mailing the same to the last or usual place
102	102	90of business or abode, or to the address best known to him or her, and failure to receive the same
103	103	91shall not invalidate a tax or any proceedings for the enforcement or collection of the same;
104	104	92provided, that if the land is residential a uniform notice approved by the attorney general, in
105	105	93language understandable by a least sophisticated consumer, together with a notice in the 5 most
106	106	94common languages in the commonwealth shall be used that states that this notice affects
107	107	95important legal rights and should be translated immediately, and provides clear notice that the
108	108	96non-payment of property taxes can result in the taking of the property and that the property
109	109	97owner may be eligible for exemptions, abatements and tax deferrals and other assistance and
110	110	98should contact the collector of taxes office together with the address, telephone number, email
111	111	99address, if available, and internet address for further information. 6 of 11
112	112	100 SECTION ___. Said chapter 60 is hereby further amended by striking out section 52 and
113	113	101inserting in place thereof the following section:-
114	114	102 Section 52. Cities and towns may make regulations for the possession, management and
115	115	103sale of land purchased or taken for taxes, not inconsistent with law, regulations promulgated by
116	116	104the department of revenue or the right of redemption. The treasurer of any city or town holding 1
117	117	105or more tax titles may assign and transfer such tax title or titles, individually or bundled, to the
118	118	106highest bidder after a public auction, after having given 60 days' notice of the time and place of
119	119	107such public auction by publication, which shall conform to the requirements of section 40, and
120	120	108having posted such notice in 2 or more convenient and public places in said city or town,
121	121	109provided that the sum so paid for such assignment is not less than the amount necessary for
122	122	110redemption, and may execute and deliver on behalf of the city or town any instrument necessary
123	123	111therefor. Only those bidders that are licensed as debt collectors by the commonwealth shall be
124	124	112eligible to participate in this sale. Regardless of whether the assignment is pursuant to this
125	125	113section or section 2C, the treasurer shall send notice of the intended assignment to the owner of
126	126	114record of each parcel at his or her last known address not less than 10 days prior to the
127	127	115assignment, where the land is residential such notice shall be served in the manner required by
128	128	116law for the service of subpoenas on witnesses in civil cases and shall include a uniform notice
129	129	117approved by the attorney general, together with a notice in the 5 most common languages in the
130	130	118commonwealth that this notice affects important legal rights and should be translated
131	131	119immediately in language understandable by a recipient with a least sophisticated consumer that
132	132	120the treasurer intends to sell the tax title to the homeowner's property and provides clear notice
133	133	121that the non-payment of property taxes can result in the loss of the property and that the property
134	134	122owner may be eligible for exemptions, abatements and tax deferrals and other assistance and 7 of 11
135	135	123should contact the collector of taxes office together with the telephone number, email address, if
136	136	124available, and internet address for further information.
137	137	125 The instrument of assignment shall be in a form approved by the commissioner and shall
138	138	126be recorded within 60 days from its date and if so recorded shall provide a rebuttable
139	139	127presumption as to all facts essential to its validity. The instrument of assignment shall, for each
140	140	128parcel assigned thereunder, state the amount for which the tax title on the parcel could have been
141	141	129redeemed on the date of the assignment, separately stating for each parcel the principal amount
142	142	130and the total interest accrued until the date of assignment. The principal amount shall be the sum
143	143	131of the amounts for which the parcel was taken and amounts subsequently certified under section
144	144	13261 and costs of service if applicable.
145	145	133 Except as hereinafter otherwise provided, all provisions of law applicable in cases where
146	146	134the original purchaser at a tax sale is another than the city or town shall thereafter apply in the
147	147	135case of such an assignment, as if the assignee had been a tax purchaser for the original sum at the
148	148	136original sale or at a sale made at the time of the taking and had paid to the city or town the
149	149	137subsequent taxes and charges included in the sum paid for the assignment. Any extension of the
150	150	138time within which foreclosure proceedings may not be instituted granted by a municipality’s
151	151	139treasurer prior to assignment shall be included in the language of sale and be binding upon the
152	152	140assignee. If the land is not redeemed within 1 year, then the foreclosing entity shall publish a
153	153	141notice of auction of the land in each of 3 successive weeks, the first publication of which shall be
154	154	142not less than 21 days before the day of sale, in a newspaper published in the city or town where
155	155	143the land lies or in a newspaper with general circulation in the city or town where the land lies and
156	156	144notice of the sale has been sent by registered mail to the owner or owners of record. If the
157	157	145purchaser sells the land at auction, the balance of any proceeds above and beyond reasonable 8 of 11
158	158	146expenses as approved by the land court shall be returned to the owner with a detailed accounting
159	159	147of these expenses within 60 days of such sale. If the land is redeemed, the foreclosing entity shall
160	160	148take whatever action is necessary to vacate and rescind the foreclosure in land court and record
161	161	149that the title has been redeemed by filing a document at the county registry of deeds entitled
162	162	150“Satisfaction of Tax Title Liability”.
163	163	151 SECTION ___. Section 53 of said chapter 60, as so appearing, is hereby amended by
164	164	152inserting after the word “published,”, in line 6, inclusive, the following words:- where the land is
165	165	153residential such notice shall be served in the manner required by law for the service of subpoenas
166	166	154on witnesses in civil cases and published.
167	167	155 SECTION ___. Said section 53 of said chapter 60, as so appearing, is hereby further
168	168	156amended by adding the following paragraph:-
169	169	157 Where the land is residential all notices sent pursuant to this section shall include a
170	170	158uniform notice approved by the attorney general, together with a notice in the five most common
171	171	159languages in the commonwealth that this notice affects important legal rights and should be
172	172	160translated immediately. Such notice shall state in language understandable by a least
173	173	161sophisticated consumer:
174	174	162 (i)That a complaint to foreclose the tax title may be filed on or after a specific date;
175	175	163 (ii)That the tax title may be sold to a third party;
176	176	164 (iii)Why the property was taken and that the owner may redeem the property and the date
177	177	165when the redemption period expires; 9 of 11
178	178	166 (iv)The components of the amount required to redeem the property and the procedure for
179	179	167redemption;
180	180	168 (v)That if a complaint to foreclose the tax title is filed and the owner does not respond by
181	181	169filing an answer the court may enter an order defaulting the order;
182	182	170 (vi)That if a complaint to foreclose the tax title is filed, the owner may respond by filing
183	183	171an answer that requests that the court set the terms by which the owner may redeem the property;
184	184	172 (vii)That if the property is not redeemed, the town or tax purchaser is entitled to receive
185	185	173an order from the land court that completes a transfer of ownership of the property to the town or
186	186	174said purchaser and permanently eliminates any rights the owner has in the property; and
187	187	175 (viii)That if the property is not redeemed, the property may be sold at auction and the
188	188	176owner will likely loses significant equity in the property.
189	189	177 SECTION ___. Said chapter 60 is hereby further amended by striking out section 62A
190	190	178and inserting in place thereof the following section:-
191	191	179 Section 62A. Municipalities may by bylaw or ordinance authorize payment agreements
192	192	180between the treasurer and persons entitled to redeem parcels in tax title. Such agreements shall
193	193	181be for a maximum term of no more than 10 years and may waive not more than 50 per cent of
194	194	182the interest that has accrued on the amount of the tax title account unless someone aged 60 or
195	195	183older or whose primary source of income is disability benefits is on the deed for the parcel and
196	196	184the parcel is his or her primary residence, in which case 75 percent of the interest that has
197	197	185accrued on the amount of the tax title may be waived, subject to such lower limit as the
198	198	186ordinance or bylaw may specify. An ordinance or bylaw under this section shall provide for such 10 of 11
199	199	187agreements and waivers uniformly for classes of tax titles defined in the ordinance or bylaw. Any
200	200	188such agreement must require a minimum payment at the inception of the agreement of 25 percent
201	201	189of the amount needed to redeem the parcel unless someone aged 60 or older or whose primary
202	202	190source of income is disability benefits is on the deed for the parcel and the parcel is his or her
203	203	191primary residence, in which case the minimum payment shall be no less than 10 percent of the
204	204	192amount needed to redeem the parcel of the interest that has accrued on the amount of the tax title
205	205	193may be waived, subject to such lower limit as the ordinance or bylaw may specify. During the
206	206	194term of the agreement the treasurer may not bring an action to foreclose the tax title unless
207	207	195payments are not made in accordance with the schedule set out in the agreement or timely
208	208	196payments are not made on other amounts due to the municipality that are a lien on the same
209	209	197parcel.
210	210	198 SECTION ___. Said chapter 60 is hereby further amended by striking out section 64 and
211	211	199inserting in place thereof the following section:-
212	212	200 Section 64. The title conveyed by a tax collector's deed or by a taking of land for taxes
213	213	201shall be absolute after foreclosure of the right of redemption by decree of the land court as
214	214	202provided in this chapter. The land court shall have exclusive jurisdiction of the foreclosure of all
215	215	203rights of redemption from titles conveyed by a tax collector's deed or a taking of land for taxes,
216	216	204in a proceeding provided for in sections 65 to 75, inclusive. Except if the title was conveyed to a
217	217	205third party pursuant to section 2C or 52 then the title may be redeemed within 1 year of the
218	218	206foreclosure. 11 of 11
219	219	207 SECTION ___. Section 65 of said chapter 60, as so appearing, is hereby amended by
220	220	208striking out, in line 4, the words “after six months,” and inserting in place thereof the following
221	221	209words:- after 12 months.”.