The proposed bill introduces the "Property Equity Protection Act" as a new chapter in Title 44 of the General Laws concerning taxation. The Act aims to protect property owners from losing their equity when their property is seized to pay a debt to the government by allowing ample time to pay off the debt and ensuring adequate notice of due process.

Key provisions include:

- Allowing any person to redeem a tax debt on behalf of the property owner of record within five years after the tax debt becomes delinquent or before the delivery of a treasurer's deed to the purchaser.
- Stipulating that no tax lien or deed may be foreclosed unless the outstanding tax debt, plus reasonable penalties, interest, and appropriate fees, exceeds either 5% of the property's fair market value or $50,000, whichever is lower.
- Establishing requirements for competitive auctions of properties sold to satisfy tax debts, including an online bidding process and mandatory advertising in a multiple listing service for at least 30 days prior to the auction.
- Outlining comprehensive notice requirements for property owners and lienholders, ensuring they are notified by certified mail at least 60 days prior to a tax sale, with additional notifications at 30 days before the sale and before the issuance of a treasurer's deed.
- Detailing the distribution of surplus proceeds from tax sales, prioritizing payment of delinquent taxes and returning any surplus to the property owner.
- Setting limits on interest rates and penalties for unpaid taxes, with interest accruing at an annual rate equal to the bank prime loan rate plus 3%, and allowing only reasonable costs of collection to be added to tax debts.
- Amending existing foreclosure procedures to align with the new protections established by the Act.

The Act is set to take effect upon passage.

Statutes affected:
2713: 44-9-25