Bill > H3011

This bill modifies Massachusetts General Laws Chapter 59, Section 57 to reduce the interest rate charged on delinquent municipal taxes. Currently, municipalities charge a fixed 14% annual interest rate on overdue tax bills. The proposed legislation would change this to a more dynamic rate calculation that ties the interest rate to the federal short-term interest rate (a benchmark rate set by the federal government), with an additional 3% added on top. Specifically, the interest rate would be calculated based on the federal short-term rate during the fiscal quarter when the tax bill is due, and this rate would be adjusted quarterly on the last day of March, June, September, and December to reflect any changes in the federal rate. This approach aims to create a more flexible and potentially lower interest rate for taxpayers with delinquent municipal tax payments, potentially making it easier for individuals and businesses to manage outstanding tax obligations.

Budget and Finance

https://malegislature.gov/Bills/194/H3011