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

The bill lets local officials set late tax interest up to 14% per year and authorize waivers and payment plans, giving municipalities control over charges and collection terms.

Overview

HD 143, An Act regarding late payments and interest rates for real estate bills and personal property taxes, is a proposed Massachusetts bill introduced for the 2025-2026 General Court. The bill would modify how interest on late real estate and personal property tax payments is determined and would add authorities for waiving interest and creating payment plans at the local level.

Main purpose

To give local governing bodies (city councils, town meetings, or equivalent legislative bodies) control over the interest charged on late real estate and personal property tax payments, up to a maximum cap of 14% per year.

To authorize local treasurers or collectors to waive interest on late payments and to establish payment plans for taxpayers with unpaid balances.

Key provisions

1) Amend Section 57 of Chapter 59 (General Laws)
- Replace the clause that currently sets a fixed interest rate of 14% per annum on late tax payments 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 creates local discretion within an upper cap, rather than a uniform statewide rate.

2) Add a new paragraph enabling local flexibility
- The collector, treasurer, or equivalent official may:
- Waive interest fees on late payments.
- Set up a payment plan with the party responsible for unpaid balances on real estate and personal property taxes.

Affected parties

Municipal governments (cities and towns) in Massachusetts (through their legislative bodies and respective treasurers/collectors).

Real estate taxpayers and personal property taxpayers subject to late-payment interest.

Tax collection offices (treasurers/collectors) who administer late payments, waivers, and payment plans.

Potential impact

Taxpayers: Increased or decreased financial burden depending on local rate decisions and the use of waivers or payment plans. Opportunities to avoid or reduce interest through arrangements.

Municipal finances: Local discretion could affect interest revenue, timing of collections, and administrative workload related to waivers and payment-plan administration.

Equity and consistency considerations: Variation among municipalities in interest rates and waiver policies could lead to uneven treatment across jurisdictions.

Procedural and timeline notes

History: Filed on January 6, 2025, as House Bill No. 3238; introduced to the General Court in the 2025-2026 session (One Hundred Ninety-Fourth General Court).

Status: Not stated in the provided materials; as with typical bills, it would require passage by both the Senate and House and signature by the Governor to become law.

Effective date: Not specified in the text; any effective date would be set if and when enacted.

Summary

HD 143 seeks to modernize and localize how late-payment interest on real estate and personal property taxes is set, within a cap of 14% annually, and adds authority for waivers and payment plans. The bill shifts some control from a statewide fixed rate to local decision-making, with potential impacts on taxpayer costs and municipal revenue management.