SECTION 1. Section 5 of chapter 59 of the General Laws, as appearing in the 2004 Official Edition, is hereby amended by inserting after the word “agreement.” , in line 1024, the following paragraph:-

A city or town which accepts this paragraph may enter into a tax deferral plan with the commonwealth under which the commonwealth shall pay to the city or town the amount of the exemption granted under the tax deferral and recovery agreement between the board of assessors and the owner or owners of the real property, but that agreement shall provide for annual interest at the rate of 5 per cent.  Upon the death of the owner of the property, or upon the death of the surviving spouse where applicable under clause (3) of the previous paragraph, payment of the deferred taxes, plus accrued interest, shall be made to the commonwealth.