HOUSE DOCKET, NO. 3441        FILED ON: 2/19/2021

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 3053

The Commonwealth of Massachusetts

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PRESENTED BY:

Jeffrey N. Roy and Tommy Vitolo

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act relative to tax deeds.

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PETITION OF:

HOUSE DOCKET, NO. 3441        FILED ON: 2/19/2021

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 3053

The Commonwealth of Massachusetts

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In the One Hundred and Ninety-Second General Court
(2021-2022)

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An Act relative to tax deeds.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

SECTION 1. Section 53 of chapter 60 of the General Laws, as appearing in the 2018 Official Edition, is hereby amended by striking the first paragraph in its entirety and replacing it with the following new paragraph:-

“If a tax on land is not paid within 14 days after demand therefor and remains unpaid, the collector shall request a hearing in the land court seeking authorization to exercise the power of taking. The collector must give 14 days notice of his intention to exercise such power of taking and of the hearing in the land court, which notice must be shall be served in the manner required by law for the service of subpoenas on witnesses in civil cases and shall be published and shall conform to the requirements of section 40. He shall also, 14 days prior to the hearing, post a notice so conforming at the property proposed for taking, in a newspaper of general circulation and in two or more convenient and public places where the property is located and the last known address of the owner. At the hearing, the court shall make inquiry into the nature of the debt owed and whether there is sufficient evidence to demonstrate that the city or town has not received payment from the debtor. The court shall also make inquiry and findings relative to the sufficiency of notice provided by the collector. The land court may authorize the taking only after issuing its findings in writing. Upon issuance of an order on the taking, the land court shall also order a public sale of the foreclosed property and order distribution of proceeds consistent with the provisions of M.G.L. 183 §. 21, §. 24-27 inclusive, treating the tax title holder like a mortgagee with the first priority interest in proceeds from the property, and treating the delinquent debtor as a mortgagor.”

SECTION 2. Section 53 of chapter 60 of the General Laws, as appearing in the 2018 Official Edition, is hereby amended by inserting after the word “forty” in line 7, the following new words:-

“and must include a clear statement in bold print that ‘Failure to act will result in losing ownership of your property.’”

SECTION 3. Section 53 of chapter 60 of the General Laws, as appearing in the 2018 Official Edition, is hereby amended by inserting after the word “thereto” in line 18, the following new sentence:-

“Upon fulfillment of the tax debt through the collection of rents or other income from the land, the tax collector shall file a document reflecting that the property was redeemed through the collection or rents or other income from the land, and shall withdraw possession of the property.”

SECTION 4. Section 64 of chapter 60 of the General Laws, as appearing in the 2018 Official Edition, is hereby amended by inserting after the word “foreclosure” in the title of the subsection, the new words:-

“and sale”

SECTION 5. Section 64 of chapter 60 of the General Laws, as appearing in the 2018 Official Edition, is hereby amended by striking the following words in line 2 “be absolute after” and replacing them with the following new words:-

“convey a right to collect rents from the property until the debt is paid or to obtain payment, with first priority over all other liens from the proceeds of a judicial sale, upon”

SECTION 6. Section 64 of chapter 60 of the General Laws, as appearing in the 2018 Official Edition, is hereby amended by inserting the following new paragraph:-

“If deemed appropriate and just by the land court, it may order seizure of rents or other income from the property if doing so would fully satisfy property tax liens and applicable interest and costs. Upon issuance of a judgment foreclosing the right of redemption, the land court shall also order a public sale of the foreclosed property and order distribution of proceeds consistent with the provisions of M.G.L. 183 §. 21, §. 24-27 inclusive, treating the tax title holder like a mortgagee with the first priority interest in proceeds from the property, and treating the delinquent debtor as a mortgagor.”

SECTION 7. Section 66 of chapter 60 of the General Laws, as appearing in the 2018 Official Edition, is hereby amended by inserting after the word “shall” in line 12, the new words:-

“include language expressing the amount necessary to redeem the property and the consequences of failing to pay,”

SECTION 8. Section 66 of chapter 60 of the General Laws, as appearing in the 2018 Official Edition, is hereby amended by striking all words after the word “fixed” in line 17 and replacing them with the new following words:-

“that failure to act will result in losing ownership of your property and a public sale of your property. If applicable, this could also result in eviction.”

SECTION 9. Section 69A of chapter 60 of the General Laws, as appearing in the 2018 Official Edition, is hereby amended by inserting after the word “date” in line 7, the new sentence:-

“Except in the interest of justice, no petition to vacate a decree of foreclosure entered under section sixty-nine and no proceeding at law or in equity for reversing or modifying such a decree shall be commenced after the date of the judicial sale and distribution of proceeds required under section sixty-four.”