Bill > H2594

This bill, concerning the collection of personal property taxes, proposes to amend Chapter 60 of the General Laws by adding a new section, 37C, which establishes a security interest on taxable personal property. This security interest will attach to the taxed property, including any after-acquired consumer goods, equipment, and inventory, as well as the proceeds from its sale, until the interest is terminated. The bill clarifies that the assessment of personal property taxes by a municipal board of assessors will have the same legal effect as a signed security agreement under the Uniform Commercial Code (UCC), a set of laws governing commercial transactions. Initially, this security interest will be considered "unperfected" under the UCC, but it will become "perfected" fourteen days after a tax demand is mailed if the tax remains unpaid, or upon the municipal collector filing a financing statement with the state secretary, which can be done no earlier than fourteen days after the demand is mailed. The collector will add filing fees and preparation fees to the outstanding balance. If a filed financing statement is nearing expiration, the collector must file a continuation statement to maintain its effectiveness, also adding associated costs and fees to the balance. Once the full amount due, including taxes, interest, and fees, is paid or abated, the security interest will terminate, and if it was perfected, the collector will file a termination statement. The bill also outlines procedures for assigning tax receivables and security interests, prioritizing UCC provisions in case of conflict with other laws, and grants the collector or an assignee all remedies available to secured parties under the UCC for collecting the balance due. Additionally, Section 2 of the bill amends Section 95 of Chapter 60 to include the filing of a financing statement for uncollected personal property taxes as part of the collection process.