Section 213 Equity Theft Commission

There shall be a special commission to conduct a comprehensive study relative to current law and practice around the collection of delinquent property tax revenue by cities and towns.

The commission shall consist of: the chairs of the joint committee on revenue or their designees, who shall serve as co-chairs; the commissioner of revenue or a designee; the chief justice of the land court department or a designee; the chief justice of the superior court department or a designee; 1 member who shall be appointed by the senate president; 1 member who shall be appointed by the speaker of the house of representatives; 1 member who shall be appointed by the minority leader of the house of representatives; 1 member who shall be appointed by the minority leader of the senate; 1 member who shall be appointed by the governor; the attorney general or a designee; the executive director of the Massachusetts Municipal Association Inc.; the president of the Massachusetts Collectors' and Treasurers' Association, Inc; a representative of third-party purchasers of tax receivables; and a representative on property owners' rights.

The commission shall file a report that shall include, but not be limited to:

(i) an examination and assessment of the current local property tax collection processes, including property owner notification and communication, property tax deferral options or exemptions that exist for special classes, third-party investor and any subsequent foreclosure proceedings;

(ii) an examination of the role of purchasers of tax receivables, including third-party purchasers of tax receivables, on the collection of delinquent property tax revenue and any recommended changes to the practice;

(iii) recommended changes to the current statutory interest rate for delinquent property taxes, if any, and the effect such changes would have on municipal operations and finances;

(iv) an examination of the revenue impact on cities and towns from former owners seeking to recover lost equity to which they may be entitled following the United States Supreme Court ruling in Tyler v. Hennepin County, 598 U.S. 631 (2023);

(v) recommended changes to the statute of limitations for such claims, if any;

(vi) the feasibility of a neutral third-party, including special masters and arbitrators, to oversee the determination of excess equity;

(vii) recommendations to implement additional reforms to municipal payment agreements under section 62A of chapter 60 of the General Laws for seniors and individuals whose primary income source is disability benefits;

(viii) the collection and analysis of data, which may include the number of foreclosures of properties following a tax taking which resulted in the loss of excess equity by former property owners for the 3 years preceding the United States Supreme Court ruling in Tyler v. Hennepin County, 598 U.S. 631 (2023);

(ix) best practices in place in other states; and

(x) any other recommendations that the commission finds to be in the interest of property owners and municipalities.

The commission shall file its final report and its recommendations for legislation, if any, with the clerks of the senate and house of representatives, the joint committee on revenue and the senate and house committee on ways and means not later than December 31, 2025.