Bill > H2994

This bill aims to improve the process for collecting delinquent property taxes by cities and towns. The key provisions are: 1. The filing fees paid by municipalities for recording tax-related documents shall be $30. 2. The sale of tax receivables (delinquent property taxes) shall be by public auction, with specific evaluation criteria for selecting the most responsible and responsive bidder, including that the bidder must be a licensed debt collector. 3. Tax purchasers must provide detailed notices to taxpayers within 12 business days of purchasing the tax receivable, informing them of their rights and options to redeem the property. 4. If a tax receivable is foreclosed upon, the former owner has 1 year to redeem the property by paying the foreclosure amount plus reasonable expenses. If not redeemed, the property may be sold at public auction, with the former owner and municipality receiving a share of any proceeds above the expenses. 5. Municipalities can now enter into payment agreements with taxpayers to allow for up to 10 years to pay delinquent taxes, with the possibility of waiving up to 75% of accrued interest in certain cases. 6. The land court has exclusive jurisdiction over the foreclosure of tax title rights, with some exceptions allowing for redemption within 1 year if the title was conveyed to a third party.

Budget and Finance

https://malegislature.gov/Bills/192/H2994