Insurance

2025-2026 Regular Session Introduced by Todd Rutherford

Municipal tax collectors would be allowed to waive up to 50% of a delinquent tax liability’s interest, charges, and fees at their discretion.

Referred to Committee on Labor, Commerce and Industry

Purpose / Intent

The bill would amend Massachusetts General Laws, Chapter 60, Section 15, to give municipal tax collectors explicit discretionary authority to waive a portion of interest, charges and fees on delinquent taxes — capped at 50% of the total tax liability for a given tax period. The stated purpose is to clarify and expand the collector’s ability to reduce taxpayer obligations arising from penalties and finance charges.

Key provision(s)

Amends the final paragraph of G.L. c.60, §15 (as in the 2018 Official Edition) by replacing it with the following rule:

“The collector may, in his discretion, waive such interest, charges and fees, up to 50% of the total tax liability for any given tax period.”

Effectively limits waivers to no more than half of the taxpayer’s total liability (tax principal plus interest/charges?) for each tax period, but permits waiving interest/charges/fees up to that 50% cap.

Who is affected

Municipal tax collectors and treasurers across Massachusetts (changes collector discretion and administrative practice).

Property owners / taxpayers with delinquent municipal taxes or charges — may become eligible to have up to 50% of their tax liability attributable to interest/charges/fees waived at the collector’s discretion.

Municipal budgets and cash flow — potential reduction in collectible revenue from interest/fees depending on how often waivers are granted.

Potential impacts and considerations

Fiscal: If widely used, the cap could reduce revenues that municipalities currently collect from penalties and interest; the net fiscal impact would depend on local implementation and frequency of waivers.

Administrative: Increases local discretion; municipalities may need written policies or criteria to guide equitable use of the waiver authority to avoid inconsistent application.

Equity/Compliance: Could provide relief to taxpayers with hardship or to resolve large outstanding balances; may also raise concerns about fairness or loss of deterrence for late payment.

Legal: The amendment sets a statutory ceiling (50%) but leaves the decision-making standard and recordkeeping/notification requirements to local practice unless further regulations are adopted.

Legislative timeline / actions (as provided)

12/05/2024 — Prefiled

01/03/2025 — Filed (House Docket No. 55)

01/14/2025 — Introduced and read first time; referred to Committee on Labor, Commerce and Industry

02/27/2025 — Referred to committee on Revenue; Senate concurred (record shows concurrence same day)

07/11/2025 — Hearing scheduled for 07/22/2025 (A-2)

07/14/2025 — Hearing canceled (new hearing TBD)

10/28/2025 — Hearing scheduled for 11/07/2025, 10:00 AM–2:00 PM (Gardner Auditorium)

Related / notes

Listed as replacing HD 55.

The version text provided includes an unrelated South Carolina draft provision concerning insurer denials for long-term leaks (S.C. §38-75-70). That South Carolina provision is separate and not part of the Massachusetts G.L. c.60 amendment; it appears to be included in the file in error.

If you’d like, I can:
- Draft a short fiscal-note style summary estimating municipal revenue impacts, or
- Propose model municipal policies to implement the waiver discretion consistently.

Bill