Bill > H3113

This bill updates the interest rate applied to judgments for property tax abatements in Massachusetts, changing the fixed 8% rate to a variable rate tied to the federal funds rate published by the Federal Reserve Bank of New York on July 1 of the applicable fiscal year. Specifically, the bill amends two sections (Sections 64 and 69) of Chapter 59 of the Massachusetts General Laws, replacing the static 8% interest rate with a dynamic rate that will fluctuate based on the federal funds rate. The federal funds rate is the interest rate at which banks lend money to each other overnight, and it is a key economic indicator that is regularly adjusted by the Federal Reserve to help manage economic conditions. By linking the property tax abatement interest rate to this federal benchmark, the bill introduces more flexibility and alignment with current economic conditions, potentially providing more responsive and fair interest calculations for property tax abatements.

Budget and Finance

https://malegislature.gov/Bills/194/H3113