An Act regarding late payments and interest rates for real estate bills and personal property taxes

194th Legislature (2025-2026) Introduced by Patrick Kearney and 2 co-sponsors

Allows municipalities to set late real estate and personal property tax interest up to 14% and to waive interest or offer payment plans for delinquent taxpayers.

Hearing scheduled for 11/07/2025 from 10:00 AM-02:00 PM in Gardner Auditorium

Overview

H.3238 seeks to modify how interest is applied to late payments on real estate taxes and personal property taxes in Massachusetts. The bill would replace a fixed interest rate with a locally determined rate and adds authority for waiving interest and offering payment plans. The announced hearing is scheduled for November 7, 2025, in Gardner Auditorium.

Key Provisions

Section 57, Chapter 59 (real estate/personal property tax late payments):

Replaces the current language that specifies “interest at the rate of 14 percent per annum” with:
“interest at the rate of up to 14 percent per annum, as determined by the city council, town meeting, or other equivalent legislative body.”
This grants municipalities the latitude to set the late-interest rate up to a 14% cap, rather than a fixed rate statewide.

New authority for waivers and payment plans:

Adds a provision allowing the collector, treasurer, or equivalent municipal official to:
Waive interest charges on late payments, and
Establish payment plans for the parties responsible for unpaid balances on real estate and personal property taxes.

Affected Parties

Municipalities: Towns and cities would determine their own late-payment interest rate (up to 14%) and would exercise the new waiver and payment-plan authorities.

Taxpayers (real estate and personal property): Taxpayers may benefit from waived interest charges or structured payment plans, potentially reducing the overall financial burden of delinquent taxes.

Tax Collectors/Treasurers: Officials would gain discretionary tools to adjust interest, waive penalties, and create formal repayment arrangements.

Procedural and Timeline Details

Introduced: February 27, 2025

Filed/Presentation: House No. 3238, by Rep. Scanlon (and co-petitioners Vargas and Kearney)

Committee: Referred to the Committee on Revenue (as of initial action)

Hearing Schedule:

Initial hearing dates have included July 22, 2025 (1:00 PM–5:00 PM) and other subsequent dates.
Current status shows a scheduled hearing for November 7, 2025 (10:00 AM–2:00 PM) in Gardner Auditorium; earlier hearings were canceled or rescheduled.

Legislative Actions: The bill has undergone multiple hearing events with adjustments to schedules.

Fiscal and Policy Implications

Revenue impacts: Allowing local setting of interest up to 14% could affect delinquency collections and municipal revenue; the ability to waive interest may reduce short-term collections but could improve taxpayer compliance.

Local control: The bill increases local policymaking authority by enabling municipalities to tailor interest rates and repayment options.

Administrative workload: Implementing waivers and payment plans may require enhanced administrative processes for tracking balances and payment arrangements.

Related Bills

Related: HD 143 (House Docket 143) replaces or accompanies this measure in the bills lineup.

This summary provides the bill’s principal changes and potential effects based on the text available. For precise legal interpretation, consult the official bill language and fiscal notes as the process advances.

Bill