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HD 2056

An Act to reduce delinquent municipal tax interest rates

194th Legislature (2025-2026) Introduced by James Arena-DeRosa

Massachusetts bill lowering interest rates on delinquent property taxes to reduce debt burden for behind-on-payment homeowners and businesses.

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Bill Summary · HD 2056

Legislative bill overview

HD 2056 proposes to lower the interest rates charged on delinquent municipal property taxes in Massachusetts. The bill aims to make tax debt more manageable for property owners who fall behind on payments while maintaining municipal revenue collection mechanisms. This represents a modification to existing tax collection procedures rather than a tax forgiveness or elimination.

Why is this important

Property owners facing financial hardship often struggle with compounding interest on delinquent taxes, which can accelerate property loss through tax foreclosure. Reducing interest rates could help some owners recover while potentially affecting municipal budgets that depend on interest revenue from delinquent accounts. The outcome will depend on the specific rate reduction and how municipalities offset any revenue loss.

Potential points of contention

  • Municipal revenue impact: Cities and towns rely on interest from delinquent taxes as part of their budgets; lower rates could create fiscal pressure, particularly in communities with higher delinquency rates
  • Fairness questions: Reducing rates may benefit some property owners while raising questions about whether it incentivizes timely payment among those able to pay
  • Implementation variation: Different municipalities may be affected disparately depending on their current delinquency levels and budget structures

Compiled from official sources — confirm details with the bill’s official record.

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