Author: Municipal Finance Legal Guidance
This month's Ask DLS features frequently asked questions concerning recent legislative changes to the tax title process, Chapter 14 of the Acts of 2025. For more information, please see our recently published Bulletin, BUL-2025-06. Please let us know if you have other areas of interest or send a question to cityandtown@dor.state.ma.us. We would like to hear from you.
What changes were made to the application of the tax title interest rate?
First, Chapter 140 of the Acts of 2024 (hereinafter “Act”) made significant changes to the tax title foreclosure process. § 88 of the Act amended G.L. c. 60, § 62 by reducing the tax title interest rate from 16% to 8%. Thereafter, DLS issued BUL-2024-6, which interpreted this provision as applying prospectively, meaning that the reduced interest rate would only be applicable for tax titles entered into on or after the effective date of this section of the Act, which was November 1, 2024. To that end, DLS opined that property already in tax title before November 1, 2024 would continue to accrue interest at a rate of 16%
Chapter 14 of the Acts of 2025 just affirmed DLS’ interpretation. Section 87 of Chapter 14 of the Acts of 2025, which went into effect on August 5, 2025, states that: “Notwithstanding any general or special law to the contrary, sections 88 and 94 of chapter 140 of the acts of 2024 and section 24 shall only apply to land purchased or taken under a tax title on or after November 1, 2024.” As such, the reduced tax title interest rate is only applicable for tax titles entered into on or after November 1, 2024 and property already in tax title before November 1, 2024 will continue to accrue interest at a rate of 16%. In light of this recent legislation, DLS advises communities to only follow the guidance contained herein with respect to the application of the reduced tax title interest rate, including for redemption purposes.
Were any additional changes made?
Yes. First, Section 23 of Chapter 14 of the Acts of 2025 extended the time in which municipalities must decide to either sell or retain property, after receiving a foreclosure judgment, from 14 days to 30 days after the judgment has become final. The language will now read:
Not more than 30 days after the of entry of judgment foreclosing the right of redemption becomes final, with either no appeal having been taken within the applicable time limit or any appeal taken having resulted in the entry of judgment pursuant to the rescript of the supreme judicial court or appeals court, the judgment holder shall elect to: (i) retain possession of the property; or (ii) sell the property.
Finally, prior to Chapter 140 of the Acts of 2024, with some exceptions, the treasurer was required to wait six months after the tax taking to file a petition in Land Court to foreclose all rights of redemption. G.L. c. 60, § 65. Chapter 140 of the Acts of 2024 changed that to 12 months. Now, pursuant to the above described Section 87, Chapter 14 of the Acts of 2025 has applied the extended duration only to tax titles entered into on or after November 1, 2024.
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| Date published: | September 4, 2025 |
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