Licensing Requirements For Entities Collecting Taxes On Behalf Of Municipalities
Entities engaged in the business of collecting or receiving payment for others of any account, bill or other indebtedness in the Commonwealth, shall obtain a collection agency license from the Division under Mass. Gen. Laws chapter 93, § 24. The Division defines "debt" as "money or its equivalent which is, or is alleged to be, more than 30 days past due and owing, unless a different period is agreed to by the debtor, under a single account as a result of a purchase, lease, or loan of goods, services, or real or personal property." under 209 CMR 18.03. It is the position of the Division that the collection of taxes, the payment of which is more than 30 days past due, on behalf of municipalities, from persons within the Commonwealth would not require a collection agency license since unpaid taxes would not be considered a "debt" as they are not the "result of a purchase, lease, or loan of goods, services, or real or personal property".