Massachusetts Senate Bill S2536

Massachusetts 2023-2024 Regular Session

• Introduced: 8/28/23
• Refer: 8/28/23
• Refer: 10/10/23
• Refer: 5/21/24

Caption

Further regulating the priority of claims of cities or towns for payment of municipal liens

Impact

The introduction of Bill S2536 represents a shift in how municipal financial claims are handled, potentially increasing the assurance of revenue collection for cities and towns from property owners through liens. Supporters of the bill may argue that this change will give municipalities a stronger position in ensuring they recover costs associated with local improvements and services provided. Nevertheless, this could also have implications for insured owners and mortgage holders, as it may affect their claims on property in the event of non-payment of municipal liens. The balance of power in financial obligations could be tipped towards local government interests, potentially leading to greater enforcement of lien collections.

Summary

Senate Bill S2536 aims to reform the regulation regarding the priority of claims by cities and towns in Massachusetts for the payment of municipal liens. The proposed legislation modifies Section 97A of Chapter 175 of the General Laws, specifically addressing the standing of claims by municipalities against those of insured owners, mortgagees, and other interested parties. The amendment stipulates that municipal claims will take precedence unless federal law states otherwise. This alteration is significant as it could affect the financial interactions between local governments and property owners or lenders, potentially prioritizing municipal revenues over other claims.

Contention

While the bill may receive support for its intent to strengthen municipal powers, it could also raise concerns about the implications for property ownership rights. Critics may argue that prioritizing municipal claims over those of private entities effectively undermines the rights of property owners and could place an unfair burden on them, especially in areas where local governments may impose higher assessments through betterments. Furthermore, the discretion granted to tax collectors to exempt companies from paying certain assessed amounts adds an element of uncertainty that could fuel further debate about equitable treatment of property claims.