HOUSE . . . . . . . . No. 4624
The Commonwealth of Massachusetts
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HOUSE OF REPRESENTATIVES, May 9, 2024.
The committee on Revenue, to whom were referred the petition
(accompanied by bill, Senate, No. 921) of Joanne M. Comerford, Mindy
Domb, Thomas M. Stanley, James B. Eldridge and others for legislation to
protect equity for homeowners facing foreclosure, the petition
(accompanied by bill, Senate, No. 1774) of Cynthia Stone Creem for
legislation relative to the surplus from a tax title sale, the petition
(accompanied by bill, Senate, No. 1794) of Lydia Edwards and Sal N.
DiDomenico for legislation to support residents and communities in
resolving tax, the petition (accompanied by bill, Senate, No. 1876) of
Mark C. Montigny, Christopher M. Markey, Antonio F. D. Cabral,
Christopher Hendricks and other members of the General Court for
legislation to protect homeowners from unfair tax lien practices by cities
and towns, the petition (accompanied by bill, Senate, No. 1953) of Bruce
E. Tarr for legislation relative to force sale of property by tax lien, the
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, the petition (accompanied
by bill, House, No. 2907) of Tram T. Nguyen and James K. Hawkins
relative to notices and protections in the process for collecting delinquent
property taxes and the petition (accompanied by bill, House, No. 2937) of
Jeffrey N. Roy, Tommy Vitolo and others relative to tax deeds and
protecting equity for homeowners facing foreclosure, reports
recommending that the accompanying bill (House, No. 4624) ought to
pass.
For the committee,
MARK J. CUSACK.
 FILED ON: 4/30/2024
HOUSE . . . . . . . . . . . . . . . No. 4624
The Commonwealth of Massachusetts
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In the One Hundred and Ninety-Third General Court
(2023-2024)
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An Act relative to municipal tax lien procedures and protections for property owners in the
Commonwealth.
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 1 of chapter 60 of the General Laws, as so appearing in the 2022
2 Official Edition, is hereby amended by inserting after the definition of “Collector” the following
3 definition:-
4 “Excess equity”, any remaining surplus amount above the taxes, interest, fees and
5 charges of keeping, as reflected in the tax title account balance as of the date of the foreclosure
6 judgment and the fees, expenses, charges, and costs actually and reasonably incurred in selling or
7 appraising the property in accordance with section 64A of this chapter following a final
8 judgment of foreclosure. Where the property is sold in accordance with section 64A, the excess
9 equity shall be determined by deducting from the gross sale proceeds the tax title balance as of
10 the date of the foreclosure judgment and any documented post-judgment costs incurred by the
11 judgment holder from the sale of the property, including but not limited to broker and/or real
12 estate agent fees or commissions, listing fees, marketing and advertising costs, legal fees, closing
13 costs, transfer fees, auctioneer fees, publication costs, and other fees directly related to the
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14 marketing and sale of the property. Where the property is retained by the judgment holder in
15 accordance with section 64A, the excess equity shall be determined by deducting the tax title
16 account balance as of the date of the foreclosure judgment and any documented post-judgment
17 costs of appraisal incurred by the judgment holder from the appraised highest and best use value
18 of the property as of the date of the final judgment of foreclosure.
19 SECTION 2. Subsection (c) of section 2C of chapter 60, as so appearing, is hereby
20 amended by striking out paragraph (9) and inserting in place thereof the following paragraph:-
21 (9) A purchaser owning any tax receivable shall give notice to a taxpayer, and to the
22 appropriate municipality, within 12 business days of purchasing said tax receivable. The notice
23 shall have the name, address, telephone number and preferred method of communication with
24 said purchaser and any service agent acting on behalf of said purchaser. Whenever the purchaser
25 or the service agent of such tax receivables shall change, the new purchaser or service agent shall
26 provide the notice required herein within 12 business days of the effective date of such change.
27 Where the land is class one residential property, as defined in section 2A of chapter 59, such
28 notice shall be mailed by certified mail and addressed to the taxpayer at their last known
29 residence and usual place of abode, or place of business; shall be posted upon the class one
30 residential property; shall be posted in a convenient and public place; and shall include a uniform
31 notice prepared by the commissioner of revenue, in language understandable by a least
32 sophisticated consumer, together with a notice in the 7 most common languages in the
33 commonwealth that this notice affects important legal rights and should be translated
34 immediately, and such notice shall state:
35 (i) That a complaint to foreclose the tax title may be filed on or after a specific date;
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36 (ii) That the tax title has been sold to a purchaser of tax receivables;
37 (iii) Why the property was taken, and that the owner may redeem the property up until
38 the property is foreclosed by a judgment issued on a proceeding before the land court;
39 (iv) The components of the amount as of the date of the notice, subject to accumulating
40 taxes, fees and charges, required to redeem the property and the procedure for redemption;
41 (v) That if a complaint to foreclose the tax title is filed and the owner does not respond by
42 filing an answer, the court may enter an order defaulting the owner;
43 (vi) That if a complaint to foreclose the tax title is filed, the owner may respond by filing
44 an answer that requests that the court set the terms by which the owner may redeem the property;
45 (vii) That if the property is not redeemed, the purchaser is entitled to receive a judgment
46 from the land court that transfers title to the property to the town or purchaser and permanently
47 eliminates any title rights the owner has in the property; and
48 (viii) That following a foreclosure of the property, the former owner shall be entitled to
49 any excess equity in the property, upon written request to the municipality or purchaser of tax
50 receivables, pursuant to section 64A.
51 SECTION 3. Chapter 60, as so appearing, is hereby amended by striking out section 16
52 and inserting in place thereof the following section:-
53 Section 16. The collector shall, before selling the land of a resident, or non-resident, or
54 distraining the goods of any person, or arresting him for his tax, serve on him a statement of the
55 amount thereof with a demand for its payment. If two or more parcels of land are assessed in the
56 name of a resident, or non-resident, the statement of the aggregate amount of the taxes thereon
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57 may be made in one demand. Such demand may also include taxes due on account of tangible
58 personal property and any motor vehicle excise tax. If the heirs of a deceased person, co-partners
59 or two or more persons are jointly assessed, service need be made on only one of them. Such
60 demand for the tax upon land may be made upon the person occupying the same on January first
61 of the year in which the tax is assessed. No demand need be made on a mortgagee, unless he has
62 given notice under section thirty-eight, in which case no demand need be made on the owner or
63 occupant. Demand shall be made by the collector by mailing the same to the taxpayer by
64 certified mail that is addressed to them at their last known residence and usual place of abode, or
65 place of business, or to the address best known by the collector, and failure to receive the same
66 shall not invalidate a tax or any proceedings for the enforcement or collection of the same;
67 provided, that if the land is class one residential property, as defined in section 2A of chapter 59,
68 the demand shall include a uniform notice prepared by the department of revenue, in language
69 understandable by a least sophisticated consumer, together with a notice in the 7 most common
70 languages in the commonwealth that this notice affects important legal rights and should be
71 translated immediately, and providing clear notice that the non-payment of property taxes can
72 result in the taking of the property and that the property owner may be eligible for exemptions,
73 abatements, and tax deferrals and other assistance, and should contact the collector of taxes
74 office, together with the address, telephone number, email address, if available, and internet
75 address for further information.
76 SECTION 4. Section 25 of chapter 60, as so appearing, is hereby amended by inserting,
77 in line 6 after the word “thereto.” the following words:-
78 The notice posted shall be prepared by the department of revenue, in language
79 understandable by a least sophisticated consumer, together with a notice in the 7 most common
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80 languages in the commonwealth that this notice affects important legal rights and should be
81 translated immediately.
82 SECTION 5. Section 52 of chapter 60, as so appearing, is hereby amended by inserting,
83 in line 17 after the word “assignment.” the following words:-
84 Where the land is class one residential property, as defined in section 2A of chapter 59,
85 such notice shall be mailed by certified mail and addressed to the taxpayer at their last known
86 residence and usual place of abode, or place of business; shall be posted upon the class one
87 residential property, shall be posted in a convenient and public place, and shall include a uniform
88 notice prepared by the department of revenue, in language understandable by a least
89 sophisticated consumer, together with a notice in the 7 most common languages in the
90 commonwealth, that this notice affects important legal rights and should be translated
91 immediately. The notice shall state that the treasurer intends to sell the tax title to the owner’s
92 property, that the non-payment of property taxes can result in the loss of the property, and that
93 the property owner may be eligible for exemptions, abatements, and tax deferrals and other
94 assistance, and should contact the collector of taxes’ office, together with the telephone number,
95 email address, if available, and internet address for further information.
96 SECTION 6. Section 53 of chapter 60, as so appearing, is hereby amended by inserting,
97 in line 4, after the word “notice”, the following words:-
98 “where the land is class one residential property, as defined in section 2A of chapter 59,
99 such notice shall be mailed by certified mail and addressed to the taxpayer at their last known
100 residence and usual place of abode, or place of business; and such notice shall be posted upon the
101 class one, residential property and published, any properties not class one residential”
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102 SECTION 7. Said section 53 of chapter 60, as so appearing, is hereby amended by
103 inserting, in line 9 after the word “places.” the following words:-
104 The notice posted shall be prepared by the department of revenue, in language
105 understandable by a least sophisticated consumer, together with a notice in the 7 most common
106 languages in the commonwealth, that this notice affects important legal rights and should be
107 translated immediately.
108 SECTION 8. Said section 53 of said chapter 60, as so appearing, is hereby amended by
109 adding, at the end of the section, the following paragraph:-
110 Where the land is class one residential property, as defined in section 2A of chapter 59,
111 all notices sent pursuant to this section shall include a uniform notice prepared by the department
112 of revenue, together with a notice in the 7 most common languages in the commonwealth that
113 this notice affects important legal rights and should be translated immediately. Such notice shall
114 state in language understandable by least sophisticated consumer:
115 (i) What taxes or other municipal costs remain unpaid;
116 (ii) The taxpayer’s right to redeem full ownership of the property, and the components of
117 the amount required to redeem the property;
118 (iii) That a complaint to foreclose the tax title may be filed on or after a specific date;
119 (iv) That the tax title may be sold to a purchaser of tax receivables;
120 (v) That if a complaint to foreclose the tax title is filed and the owner does not respond by
121 filing an answer, the court may enter an order defaulting the owner;
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122 (vi) That if a complaint to foreclose the tax title is filed, the owner may respond by filing
123 an answer that requests that the court set the terms by which the owner may redeem the property;
124 (vii) That if the property is not redeemed, the town or purchaser is entitled to receive a
125 judgment from the land court that transfers title of the property to the town or purchaser and
126 permanently eliminates any title rights the owner has in the property; and
127 (viii) That following a foreclosure of the property, the former owner shall be entitled to
128 any excess equity in the property, upon written request to the municipality or purchaser of tax
129 receivables, pursuant to section 64A.
130 SECTION 9. Section 62A of chapter 60, as so appearing, is hereby amended by striking
131 out in line 4 the words, “5 years” and inserting in place thereof the following:-
132 “10 years”
133 SECTION 10. Section 62A of chapter 60, as so appearing, is hereby amended by striking
134 out in in line 12, the words “25 per cent” and inserting in place thereof the following:-
135 “10 per cent”
136 SECTION 11. Chapter 60, as so appearing, is hereby amended by striking out section 64,
137 and inserting in place thereof the following section:-
138 Section 64. The land court shall have exclusive jurisdiction of the foreclosure of all rights
139 of redemption from titles conveyed by a tax collector's deed or a taking of land for taxes, in a
140 proceeding provided for in sections sixty-five to seventy-five, inclusive. The title conveyed by a
141 tax collector's deed or by a taking of land for taxes shall be absolute after foreclosure of the right
142 of redemption by judgment of the land court as provided in this chapter. The entry by the land
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143 court of a judgment of foreclosure of the right of redemption shall not, however, impair or limit
144 the right of the owner of the land at the time of foreclosure, and of those holding an interest in
145 the land at the time of foreclosure, and their heirs, successors and assigns, to receive any excess
146 equity and subject to the requirements of section 64A of this chapter. Any sale or retention of
147 property by a municipality or other foreclosing entity pursuant to this chapter, shall be subject to
148 the duties and requirements set forth in section 64A.
149 SECTION 12. Said chapter 60, as so appearing, is hereby further amended by inserting
150 after section 64 the following section:-
151 Section 64A. Claim for excess equity after judgment foreclosing right of redemption
152 This section shall apply to every sale or retention of property by a municipality or a
153 purchaser of tax receivables following a final judgment of the land court foreclosing the right of
154 redemption. Within 14 days of entry of judgment foreclosing the right of redemption becoming
155 final, with either no appeal having been taken within the applicable time limit, or any appeal
156 taken having resulted in the entry of judgment pursuant to the rescript of the Supreme Judicial
157 Court or Appeals Court, the judgment holder shall elect either to (a) retain possession of the
158 property or (b) sell the property. The judgment holder shall notify the former owner(s) of the
159 property and all others known to hold the right of redemption in the property at the time
160 judgment entered of the petitioner’s election by mailing notice of the judgment holder’s election
161 and the rights and procedures for claiming excess equity set forth in this section, by certified
162 mail, to their last known address or place of business.
163 If selling the property, the judgment holder shall use reasonable best efforts to market the
164 property for sale within 120 days of the final judgment of the land court, unless a later date is
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165 agreed to by the judgment holder and any party(ies) entitled to claim excess equity under this
166 section. If the property is to be retained, rather than sold, the judgment holder shall use
167 reasonable best efforts to have the property appraised, as set forth in this section, within 120 days
168 of the final judgment of the land co