House Minority
Leader Bradley H. Jones, Jr. (R-North Reading) has appointed State Representative John J. Marsi (R-Dudley) to serve on a special commission that
will conduct a comprehensive study of current state law and practices governing
the collection of delinquent property tax revenue by cities and towns.
The special commission will consider potential changes to the new home equity theft law to further protect Massachusetts homeowners facing foreclosure due to unpaid property taxes and address concerns raised by the Massachusetts Municipal Association relative to the law’s three-year retroactive provisions and its potential impact on municipal property tax revenues.
Prior to the new law, cities and towns that foreclosed on a property to settle an unpaid tax debt could retain the full value of the property once it was sold, not just the amount of the original debt. Municipalities could also sell tax liens on delinquent properties to private investors, who were allowed to file for foreclosure with the Land Court once the debt was six months old and keep any profits from the property’s sale. A pair of recent court rulings found the law unconstitutional, leading to changes that were enacted last year to ensure that homeowners who are foreclosed on can recover the remaining balance of their home’s equity.
In 2023, the US Supreme Court ruled in the case of Tyler v. Hennepin County that a Minnesota statute similar to Massachusetts’ was unconstitutional because it denied reasonable compensation to a homeowner for the taking of their property. More recently, a judge in Hampden County ruled that the practices used in Massachusetts violated Article 10 of the state Constitution’s Declaration of Rights and the takings clause of the Fifth Amendment to the US Constitution. The case involved a Springfield homeowner with an unpaid property tax bill of $1,637 who entered into a payment agreement with the city at a 16% interest rate but was unable to keep up with the payments and eventually owed about $17,500 with interest, placing them at risk of losing their home, which was valued at approximately $230,000 and had over $200,000 in equity.
“The tax equity theft law enacted last year provides many important protections to homeowners, including stronger notification requirements, lower interest rates on past due taxes, and more favorable repayment plans, but there is always room for improvement,” said Representative Jones. “As a former selectman with an extensive budgeting background, John is well-positioned to help the commission find the proper balance between protecting municipalities’ financial interests and preventing homeowners from losing their homes.”
The commission is
due to file a report with its findings and recommendations by December 31,
2025.
Marsi represents the 6th Worcester District, which is comprised of Dudley; Southbridge; Precincts 1, 2, 3, and 4A in Charlton; and Precinct 1 in Spencer.
