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| Home > Statutes > USA Massachusetts |
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USA Statutes : massachusetts
Title : PART I. ADMINISTRATION OF THE GOVERNMENT
Chapter : TITLE IX. TAXATION
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Chapter 60: Section 1. Definitions Section 1. Terms used in this chapter shall, unless other meaning is clearly apparent from the context, or unless inconsistent with the manifest intent of the legislature, be construed as follows:“Affordable housing”, housing with an affordable housing restriction recorded with the registry of deeds in the county where the property is located that requires the housing, for not less than 45 years, to be rented or owned by families and individuals whose income at initial occupancy is no more than 120 per cent of the area median income as determined by the federal department of housing and urban development guidelines and adjusted for family size and that thereafter such units shall be rented or sold, subject to such restrictions on appreciation as determined by the municipality to be reasonable and necessary to maintain long term affordability, to families or individuals at incomes of no more than 120 per cent of the area median income.
“Abandoned Property”, property that is unused, unoccupied, and in such a deteriorated condition as to be uninhabitable or a danger to life or limb. As used in the above sentence unoccupied shall mean without lawful occupants.
“Collector”, a person receiving a tax list and a warrant to collect the same.
“Publication”, as applied to any notice, advertisement or other instrument, the publication of which is required by law, shall mean the act of printing it once in a newspaper published in the town, if any, otherwise in the county, where the land or other property to which the notice or other instrument relates is situated. The publication shall be made at least fourteen days prior to the date stated for the occurrence of the event to which the publication relates.
“Registry of deeds”, the registry of deeds for the county or district where the land taxed lies.
“Service”, as applied to any notice, demand or other paper, shall, except as otherwise provided in section sixteen, mean delivering it or a copy to the person for whom it is intended, or leaving it or a copy at his last and usual place of abode or of business, or sending it or a copy by mail postpaid addressed to him at his last and usual place of abode or of business or, if such notice or other paper relates to taxes on land, posting it or a copy conspicuously in some convenient and public place and sending a copy by mail postpaid addressed to the person for whom it is intended at the town where such land lies. Such service shall be sufficient whether made by the then collector of taxes or by any predecessor.
The affidavit of the collector, deputy collector, sheriff, deputy sheriff or constable serving the notice, demand or other paper of the manner of service shall be kept on file in the office of the collector, and shall be prima facie evidence that the same was so served.
Chapter 60: Section 10, 11. Repealed, 1923, 128, Sec. 2 Chapter 60: Section 100. Collectors; failure to turn over accounts Section 100. Violation by a collector, former collector, or an executor or administrator of a collector or former collector, of any provision of section nine, twelve or ninety-seven shall be punished by a fine of not more than five hundred dollars.
Chapter 60: Section 101. Violations of Sec. 12 Section 101. Violation of section twelve by a person of whom demand is made thereunder shall be punished by a fine of not more than five hundred dollars.
Chapter 60: Section 102. Collectors; violations of Sec. 2 or Sec. 8 Section 102. Violation by a collector of section two or section eight shall be punished by a fine of not less than three hundred dollars.
Chapter 60: Section 103. Failure to aid collector Section 103. Whoever refuses or neglects to aid a collector when required under section thirty-three shall forfeit not more than ten dollars.
Chapter 60: Section 104. Exorbitant redemption charges Section 104. Violation by any person of the last sentence of the second paragraph of section sixty-two shall be punished by a fine of not more than one hundred dollars.
Chapter 60: Section 105. Forms Section 105. Forms to be used in proceedings for the collection of taxes under this chapter and chapter fifty-nine and of all assessments which the collector is authorized or required by law to collect shall be as prescribed or approved by the commissioner.
Chapter 60: Section 106. Repealed, 1985, 598, Sec. 2 Chapter 60: Section 12. Custody of books, etc.
; demand for Section 12. A town clerk or an assessor, having knowledge of any accounts, records or papers relating to taxes in his town which should be in his custody, shall demand them of any person having them, who shall forthwith deliver them to him.
Chapter 60: Section 13. Necessity and duty to give bond Section 13. The collector shall, before the commitment to him of any taxes of any year, or, if he is a city or town collector under section thirty-eight A of chapter forty-one, before such commitment or the collection of any other accounts due his city or town and not included within the provisions of a bond previously given by him and still in force, give a bond or bonds for the faithful performance of his duties in all capacities in which he is acting as collector either in the collection of taxes or of such other accounts, including a bond, which shall be separate, in respect to uncollected accounts, if any, turned over to him by the assessors under section ninety-seven. Each bond given under this section shall be in a form approved by the commissioner and in such sum or sums, not less than the amount or amounts established by the commissioner, as shall be fixed by the selectmen or mayor and aldermen. A copy of each such bond shall be delivered to the commissioner. If the collector does not give bond or bonds as herein required, the selectmen or mayor and aldermen may declare the office vacant and the vacancy may be filled in the manner prescribed by section forty or sixty-one A of chapter forty-one, as the case may be.
Chapter 60: Section 14. Appointment; bond Section 14. In towns, not cities, if, at the expiration of three years from the date of the commitment of tax lists and warrant to a collector of taxes, any taxes remain uncollected and recovery cannot be made upon the bond of the collector of the amount of such uncollected taxes, the selectmen shall appoint the collector of taxes for the current year or some other person as special collector thereof. He shall furnish a satisfactory bond for the faithful performance of his duties, in such sum as the selectmen require, in a form to be approved by the commissioner.
Chapter 60: Section 15. Fees of collector Section 15. The following interest, charges and fees, and no other, when accrued, shall severally be added to the amount of the tax and collected as a part thereof:—1. For interest, as provided by law;2. For each written demand provided for by law, five dollars;3. For preparing advertisement of sale or taking, $10 for each parcel of real estate included in the advertisement and the necessary legal fees for search of title;4. For advertisement of sale or taking in newspaper, the cost thereof;5. For posting notices of sale or taking, $5 for each parcel or real estate included in the notice;6. For affidavit, $10 for each parcel of land included therein;7. For recording affidavit, the cost thereof;8. For preparing deed or instrument of taking, $10;9. For the issuance and delivery of a warrant to an officer, $10;10. For notice by mail or other means to the delinquent that warrant to collect has been issued, $12;11. For exhibiting a warrant to collect or delivering a copy thereof to the delinquent or his representative or leaving it at his last and usual place of abode or of business, and without distraint or arrest, $17.
12. For distraining goods of the delinquent, $10 and the necessary cost thereof;13. For the custody and safekeeping of the distrained goods of the delinquent, the cost thereof, for a period not exceeding seven days, together with the expense of parking, storage, labor and towing or teaming, and other necessary expenses;14. For selling goods distrained, the cost thereof;15. For arresting the body, the necessary costs of the arresting officer and the cost of the travel, at the rate of $.
30 per mile, from the office of the collector to the place where the arrest is made;16. For custody of the body arrested, if payment of the delinquent tax is not made forthwith, $10, and in addition thereto travel at the rate of $.
30 per mile from the place of arrest to the jail or, if payment is made before commitment to jail, for the distance from the place where the arrest is made to the place where payment is made;17. For service of demand and notice under section fifty-three, if served in the manner required by law for the service of subpoenas on witnesses in civil cases, the cost thereof, but not more than $40;18. For the mailing of each written demand or notice by registered mail, the cost thereof.
19. For the recording of the instrument of taking under section 54, the cost thereof.
The collector shall account to the town treasurer for all interest, charges and fees collected by him; but the town shall reimburse or credit him for all expenses incurred by him hereunder, including all lawful charges and fees paid or credited by him for collecting taxes.
The collector may, in his discretion, waive such interest, charges and fees when the total amount thereof is $15 or less.
Chapter 60: Section 15A. Repealed, 1963, 160, Sec. 27 Chapter 60: Section 16. Demand; statement of amount Section 16. The collector shall, before selling the land of a resident, or non-resident, or distraining the goods of any person, or arresting him for his tax, serve on him a statement of the amount thereof with a demand for its payment. If two or more parcels of land are assessed in the name of a resident, or non-resident, the statement of the aggregate amount of the taxes thereon may be made in one demand. Such demand may also include taxes due on account of tangible personal property and any motor vehicle excise tax. If the heirs of a deceased person, co-partners or two or more persons are jointly assessed, service need be made on only one of them. Such demand for the tax upon land may be made upon the person occupying the same on January first of the year in which the tax is assessed. No demand need be made on a mortgagee, unless he has given notice under section thirty-eight, in which case no demand need be made on the owner or occupant. Demand shall be made by the collector by mailing the same to the last or usual place of business or abode, or to the address best known to him, and failure to receive the same shall not invalidate a tax or any proceedings for the enforcement or collection of the same.
Chapter 60: Section 17. Unpaid taxes; collection Section 17. If any tax, betterment or special assessment remains unpaid fourteen days after demand therefor, the collector, in the case of any tax, betterment or special assessment upon real estate, within two years from April first in the calendar year in which the assessment was made, and, in case of any other tax, within three years from said April first, shall collect the tax, together with all incidental charges and fees, in the manner provided by law.
Chapter 60: Section 18. Repealed, 1932, 54, Sec. 1 Chapter 60: Section 19. Special warrant for distress or imprisonment without demand, and for acceptance of early payments Section 19. If the assessors are of the opinion that the credit of a person taxed is doubtful or that he is about to leave the commonwealth, they may, by a special warrant, direct the collector forthwith, without demand or notice, to compel payment by distress or imprisonment, whether the tax is payable immediately or at a future day, by instalments or otherwise.
If a person desires to make an early payment or payments of taxes, prior to the commitment by the assessors of the tax list and warrant required by section fifty-three of chapter fifty-nine, the assessors may, by a special warrant, authorize the collector to accept such payment.
Chapter 60: Section 2. Collection; payment over; returns; abatement Section 2. Every collector of taxes, constable, sheriff or deputy sheriff, receiving a tax list and warrant from the assessors, shall collect the taxes therein set forth, with interest, and pay over said taxes and interest to the city or town treasurer according to the warrant, and shall make written return thereof with his tax list and of his doings thereon at such times as the assessors shall in writing require. He shall also give to the treasurer an account of all charges and fees collected by him. He shall, once in each week or more often, pay over to the treasurer all money received by him for taxes and interest during the preceding week or lesser period together with any interest earned as a result of depositing said taxes and interest received.
In cities and towns which accept the provisions of this paragraph, no tax shall be collected if the actual tax due is less than ten dollars. If a tax committed to the collector is unpaid and is less than ten dollars, the collector shall request in writing that the assessors abate the tax. Upon receipt of such request, the assessors shall forthwith abate such tax and certify such abatement in writing to the collector. Said certificate of abatement shall discharge the collector from further obligation to collect the tax so abated.
Chapter 60: Section 20. Certificate of abatement Section 20. If a person claims the benefit of an abatement, he shall exhibit to the collector demanding his taxes the certificate of such abatement authorized by section seventy of chapter fifty-nine; and he shall be liable for all costs and officers’ fees incurred before exhibiting such certificate; provided, however, that if it is found that no tax is due, no such costs or officers’ fees shall be collected.
Chapter 60: Section 21. Error in name of person; collection from intended persons Section 21. If, in the assessors’ lists or in their warrant and list committed to the collector, there is an error in the name of a person taxed, the tax assessed to him may be collected of the person intended to be assessed, if he is taxable and can be identified by the assessors.
Chapter 60: Section 22. Partial payments Section 22. After the commitment of a tax, including assessments for betterments or other purposes, to a collector for collection, the owner of the estate or person assessed or a person in behalf of said owner or person may, if the tax is a tax upon real estate, at any time and from time to time up to the date when an advertisement is prepared for the sale or taking of the real estate for the nonpayment of such tax or up to the date when the tax is certified under section sixty-one, and if the tax is a personal property tax, at any time and from time to time up to the date when a warrant or other process is issued for the enforcement and collection thereof, tender to the collector a partial payment of the tax not less than ten per cent of the total tax but in no event less in amount than ten dollars, which shall be received, receipted for and applied toward the payment of the tax. The acceptance of any partial payment in accordance with this section shall not invalidate any demand made for a tax, prior to the acceptance of such partial payment; provided that the amount stated in the demand was the amount due at the date when the demand was made. If in any court it shall be determined that the tax is more than the amount so paid, judgment shall be entered for such excess and interest upon the amount thereof to the date of the judgment, and on the amount paid to the date of payment, with costs if otherwise recoverable. The part payment authorized by this section shall not affect a right of tender, lien or other provision of law for the recovery of the amount of such tax, or interest or costs thereon, remaining due, but if the part payment is more than the tax, as finally determined, the excess, without interest, shall be repaid to the person who paid it.
Chapter 60: Section 22A. Separate tax bills or notices; partial payments on account; receipts Section 22A. The collector may, and shall at the request at any time of a person owning or having an interest in a parcel of land, issue a separate tax bill or notice for the tax for any year upon any parcel of land separately assessed or separately listed on the assessors’ valuation list, which bill or notice shall contain a description of said parcel or reference to the assessors’ valuation list sufficient to identify such parcel. With respect to the tax for any year on any parcel of land so separately assessed or separately listed, the owner of said parcel or person assessed or a person having any interest in said parcel may at any time prior to a tax taking or a tax sale of such parcel make full payment of the tax upon such parcel or may make from time to time partial payments on account of the tax upon such parcel of not less than ten per cent of such tax, but in no event less in amount than ten dollars, and otherwise subject to the terms, conditions and provisions governing partial payments of a tax contained in section twenty-two. The collector shall give a receipt in full for any such full payment and a partial receipt for any such partial payment. Any such payment in full shall discharge the tax lien upon such parcel for the taxes of the year in which such tax was assessed, and any such partial payment shall reduce the tax lien upon such parcel for the taxes of such year to the extent of the portion of the tax upon such parcel so paid. No lien shall be deemed to exist upon any parcel of land for or because of the tax or portion of tax assessed on or with respect to any other parcel. Such information as to the assessors’ valuation list as may be required for the purposes of this section shall be furnished by the assessors to the collector upon demand.
Chapter 60: Section 23. Filing certificates; releasing liens, etc. Section 23. The collector of taxes for any city, or for any town having more than five thousand inhabitants, as determined by the last preceding national or state census, shall, on written application by any person, and within ten days thereafter, excluding Saturdays, Sundays and holidays, furnish to such applicant a certificate of all taxes and other assessments, including water rates and charges, and charges due to municipal lighting plants, under the provisions of sections fifty-eight B to fifty-eight F, inclusive, of chapter one hundred and sixty-four which at the time constitute liens on the parcel of real estate specified in such application and are payable on account of such real estate. The collector of taxes for any town having five thousand inhabitants or less as determined by the last preceding national or state census shall, on written application by any person, and within twenty days thereafter, excluding Saturdays, Sundays and holidays, furnish to such applicant such a certificate. Such certificate shall be itemized and shall show the amounts then payable on account of all such taxes and assessments, rates and charges, so far as such amounts are fixed and ascertained, and if the same are not then ascertainable, it shall so be expressed in the certificate. Any town officer or board doing any act toward establishing any such tax, assessment, lien or charge upon any real estate in the town shall transmit a notice of such act to the collector of taxes. Such collector of taxes shall charge twenty-five dollars for each certificate so issued, and the money so received shall be paid into the city or town treasury. The collector of taxes for any town having fewer than five thousand inhabitants as determined by the last preceding national census may, if permitted by local by-law, keep such certificate fee for his personal services. A certificate issued on or after January first, nineteen hundred and eighty-one, under this section may be filed for record or registration, as the case may be, within one hundred and fifty days after its date, and if so filed shall operate to discharge the parcel of real estate specified from the liens for all taxes, assessments, or portions thereof, rates and charges which do not appear by said certificate to constitute liens thereon, except taxes, assessments, or portions thereof, rates and charges with respect to which there has been filed for record or registration evidence of a taking or a sale by the municipality or concerning which a statement or order creating or continuing such lien has been so filed under any provision of law, if said lien can be discharged by the recording or registration of an instrument other than a certificate under this section; but a certificate issued under this section shall not affect the obligation of any person liable for the payment of any tax, assessment, rate, or charge by reason of being the assessed owner of such parcel of real estate at the time any such lien became effective. The register of deeds as such or as assistant recorder of the land court shall receive and record or register such certificate upon the payment of a fee of $50.
No register of deeds or assistant recorder of the land court shall accept for recording or registration, as the case may be, a definitive subdivision plan unless it is accompanied by a municipal lien certificate, indicating that all taxes, assessments, and charges then assessed against the land shown on the plan have been paid in full. Failure to comply with this section shall not affect the validity of the subdivision plan, the recording of the plan, or any deed of any part or all of the land shown on the plan.
Chapter 60: Section 23A. Certificate of liens; fee schedule Section 23A. In any city or town accepting the provisions of this section, prior to January first, nineteen hundred and eighty-eight, the collector of taxes shall furnish a certificate of liens as provided in section twenty-three according to the following fee schedule: for land of less than one acre upon which there is no permanent structure a fee of ten dollars; for land upon which is situated no more than a single family residence and outbuildings a fee of ten dollars; for land upon which is situated no more than a two family residence and outbuildings a fee of fifteen dollars; for land upon which is situated no more than a three family residence with outbuildings a fee of twenty dollars; for land upon which is situated a residence for four or more families a fee of forty dollars; for land upon which is situated a commercial, industrial or public utility structure a fee of one hundred dollars; for farms, forest land and all other real property a fee of fifty dollars. In no case shall the fee exceed one half of one per cent of the assessed value of the real estate and the money so received shall be paid into the town treasury.
Chapter 60: Section 23B. Certificate of liens; fee schedule Section 23B. In any city or town accepting the provisions of this section, the collector of taxes shall furnish a certificate of liens as provided in section twenty-three according to the following fee schedule: for land of less than one acre upon which there is no permanent structure, a fee of twenty-five dollars; for land upon which is situated no more than a single family residence and outbuildings, a fee of twenty-five dollars; for land upon which is situated no more than a two family residence and outbuildings, a fee of twenty-five dollars; for land upon which is situated no more than a three family residence with outbuildings, a fee of twenty-five dollars; for land upon which is situated a residence for four or more families, a fee of one hundred dollars; for land upon which is situated a commercial, industrial or public utility structure, a fee of one hundred and fifty dollars; for farms, forest land and all other real property, a fee of fifty dollars. In no case shall the fee exceed one half of one per cent of the assessed value of the real estate and the money so received shall be paid into the town treasury.
Chapter 60: Section 24. Levy by distress or seizure and sale; exemptions Section 24. If a person refuses or neglects to pay his tax for fourteen days after demand, and after a warrant to collect and a warrant to distrain or commit is issued pursuant to section twenty-nine, the collector may without unnecessary delay levy the same by distress, or seizure and sale of his goods, except tools or implements necessary for his trade or occupation, beasts of the plough necessary for the cultivation of his improved land, military arms, uniforms and equipment, utensils for housekeeping necessary for upholding life, and bedding and apparel necessary for himself and family.
Chapter 60: Section 25. Detention of goods distrained; notice; sale Section 25. The collector may keep the goods distrained, at the expense of the owner and, if they are not redeemed by payment by the owner or his agent of the tax due, shall within thirty days after the seizure, sell them by public auction for a payment of the tax and charges of keeping and sale, first posting notice of the sale in some public place in the town at least forty-eight hours prior thereto.
Chapter 60: Section 26. Adjournment; notice Section 26. The collector may once adjourn such sale for not more than three days, and he shall forthwith post a notice of such adjournment at the place of sale.
Chapter 60: Section 27. Levy of tax on land by distress of stock and produce Section 27. If a person is taxed for land in his occupation, but of which he is not the owner, the collector, or his designee, after demand for payment, the issuance of the warrant to collect, and the issuance of the warrant to distrain or commit pursuant to section twenty-nine, may levy the tax by distress by the sale of cattle, sheep, horses, swine or other stock or produce of such estate, belonging to the owner thereof, which, within nine months after such assessment has been committed to him, may be found upon the premises, in the same manner as if such stock or produce were the property of the person so taxed; provided, however, that such demand for payment need not be made if the person on whom the tax is assessed resided within the precinct of the collector at the time of the assessment, and subsequently removes therefrom and remains absent three months.
Chapter 60: Section 28. Accounting for surplus Section 28. The collector shall upon demand give a written account of every sale on distress or seizure and charges, and pay to the owner any surplus above the taxes, interest and charges of keeping and sale.
Chapter 60: Section 29. Issuance of warrant to collect; hearing; imprisonment Section 29. If a person refuses or neglects to pay his tax for fourteen days after demand, the collector shall issue a warrant to collect said tax including interest, charges and fees. A warrant issued under this section may be signed by the collector or his deputy, and a facsimile of the signature of the collector shall have the same validity as his written signature.
If a person refuses or neglects to pay his tax after the collector or his designee has notified the person by mail or other means that a warrant to collect has been issued, and the collector or his designee exhibits a copy of the said warrant to collect, or delivers a copy thereof to the taxpayer, or leaves it at his last and usual place of abode, or of business, said collector or his designee may request a hearing in the district court having jurisdiction. Upon such request for hearing, the court may issue a summons, requiring said person to appear at a time and place named therein and submit to an examination on oath relative to his property and ability to pay and as to whether the tax, interest, charges and fees are owed. Such summons may be served by an officer qualified to serve civil process, including said collector or his designee, by delivering to the debtor an attested copy thereof, or by leaving it at his last and usual place of abode, at least seven days before the return day thereof. If service is not made, the court may order further notice.
If the court finds that the debt is owed and there is sufficient property and an ability to pay, a warrant to distrain or commit and take the body of such person and commit him to jail shall issue to the collector or his designee to serve upon said person, according to law.
Chapter 60: Section 2A. Banks designated to receive tax payments; agreements Section 2A. The collector, with the approval of the city council in cities, the board of selectmen in towns and the town council in municipalities having a town council form of government, is hereby authorized to enter into agreements for a term of not more than three years with one or more banks as defined in chapter one hundred and sixty-seven or a national banking association or a savings and loan association authorized to do business in the commonwealth designating such bank or banking association or a savings and loan association to receive payments of any taxes or other accounts payable to such city or town. Said agreement shall provide that any tax or other account received by a designated bank shall be processed and credited in the same manner as if such payment had been received in such day directly in the office of such tax collector. Any such payment shall be subject to the provisions of chapters forty-four, sixty and sixty A of the General Laws. Any designated bank or national banking association or a savings and loan association shall indemnify said city or town and the officers, agents and employees thereof for any losses sustained by it or them on account of the negligence of such bank or national banking association or a savings and loan association or its failure to perform faithfully its duties and obligations pursuant to any such agreement.
Chapter 60: Section 2B. Municipal taxes; collection services; agreements; compensation; reports; accounting Section 2B. For the purposes of collecting municipal taxes, the collector is authorized to enter into agreements with one or more private persons, companies, associations or corporations doing business in the commonwealth to provide collection services with respect to unpaid municipal taxes, other than taxes for real property, for which a demand has already been made. In the event the local tax collector chooses to utilize the services of a collection agency or company, no such agreement shall be entered into unless proposals for the same have been invited by public notice published in at least one newspaper of local circulation once a week for at least two consecutive weeks, the last such publication to be at least one week prior to the time specified for the opening of said proposals. All such proposals shall be opened in public. The collector may reject any or all such proposals and may not accept an offer other than the lowest responsible bid unless the collector specifies the reasons therefor in writing. Any such agreement may provide, in the discretion of the collector, the manner in which the compensation for such services will be paid, which compensation cannot exceed the fees which would otherwise be due the collector under section fifteen, or one-third of the taxes collected on each tax due, exclusive of interest and charges, whichever is the greater. Such compensation which is greater than the amount of fees which are otherwise due the collector shall be added to the amount due and collected as a part thereof by the collection agency.
All amounts collected during the previous week by the collection agency shall be turned over to the collector together with an itemized statement of the taxes, interest and charges collected and so turned over.
Notwithstanding clause (13) of section twenty-one of chapter forty, or any ordinance or by-law to the contrary, the collector may authorize the treasurer to pay the compensation of the collection agent pursuant to the agreement with the collector, without further appropriation of the town; provided, however, that no such payment shall be made for any particular tax collection until the checks, if any, in payment therefor, have been honored.
The collector shall, on or before August first of each year, submit to the commissioner a report which lists all private persons, companies, associations or corporations with whom the collector has had agreements during the preceding fiscal year and an accounting of the amount of taxes collected by and the compensation paid to each such person, company, association or corporation. The commissioner may make, and from time to time revise, such rules, regulations and guidelines necessary to carry out the provisions of this section. The collection agency as a legal entity shall be bonded for the faithful performance of duty in the manner required of deputy collectors under section ninety-two, and such bond shall be deemed to include all agents or employees of said collection agency. This section shall be in addition to and separate from the process of appointing deputy collectors under section ninety-two, except that the collection agency shall be subject to the same limitations as collectors and deputy collectors and the same remedies for collection.
Chapter 60: Section 2C. Assignment or transfer of tax receivables; conditions of sale; limitations Section 2C. (a) For the purposes of this section, the following words shall have the following meaning:“Appropriate financial official”, the treasurer or collector of a municipality.
“Available funds deficit”, the amount by which the funds certified by the director of accounts as available on July first next preceding the date of appropriation pursuant to section twenty-three of chapter fifty-nine, reduced by the amount of all intervening appropriations from available funds and increased by such amounts as the director may authorize, is less than zero.
“Commissioner”, the commissioner of the department of revenue.
“Current tax receivables”, tax receivables sold on or before the first annual anniversary of the date that the entire amount an individual taxpayer receivable or related tax could have been paid without interest or penalty.
“Entity”, any individual or business subject to the provisions of chapter sixty-two or chapter sixty-three.
“Individual taxpayer receivable”, tax receivables that are owed to a municipality for single or multiple tax years by or on behalf of a taxpayer that constitute all or part of the tax receivables sold by an appropriate financial official to a purchaser pursuant to the provisions of this section.
“Municipality”, any city or town within the commonwealth.
“Parcel”, any piece of real or personal property subject to real property taxes or excise taxes.
“Purchaser”, a person or entity that purchases tax receivables pursuant to the provisions of this section; provided, however, that any such entity must be registered with the state secretary and must be a party in good standing.
“Related Tax”, the tax that gives rise to a tax receivable sold pursuant to the provisions of this section.
“Service agent”, a person or entity employed by or acting on behalf of a purchaser, whether or not for a fee or other compensatory arrangement, for the purpose of collecting tax receivables purchased by said purchaser from a municipality in the manner provided herein.
“Statutory notice third party”, a third party entitled to receive notices with respect to an individual taxpayer receivable pursuant to section thirty-eight or section thirty-nine or any other general or special law.
“Subsequent individual taxpayer receivable”, an individual taxpayer receivable arising in connection with a parcel with respect to which an individual taxpayer receivable is presently outstanding.
“Tax receivable”, the right to receive payment of taxes assessed and due on real and personal property, in one or more fiscal years and sold by assignment or transfer, either individually or in bulk, by an appropriate financial official to a purchaser pursuant to the provisions of this section.
“Taxpayer”, a person or entity owning property, real or personal, against whom a municipality has assessed real property taxes.
“Taxes”, taxes assessed by a municipality against real and personal property under chapters fifty-nine and sixty or any other charge added to and committed as part of the tax and secured by a tax lien.
(b) The appropriate financial official of a municipality may arrange for and assign or transfer to a purchaser the municipality’s right to receive payments owed by a taxpayer on tax receivables after the date upon which the amounts so owed may be paid without interest or penalty. If any taxes owed to a municipality include taxes assessed by a district located wholly or in part within the limits of such municipality, then such district may assign or transfer the right to receive payment of such taxes pursuant to this section in accordance with guidelines or regulations that the commissioner may issue. The assignment or transfer of individual taxpayer receivables by a municipality may be made either individually or in bulk. Prior to the assignment or transfer of individual taxpayer receivables, the appropriate financial official shall publish, in accordance with section 1, a list of all receivables that will be offered for assignment or transfer hereunder at least 60 days prior to the offer of such parcel for assignment or transfer and a municipality may not offer for assignment or transfer any parcel upon which a taxpayer has entered into and is in compliance with the terms of a payment agreement with the appropriate financial official. If the taxpayer fails to comply with such agreement, the appropriate financial official may assign or transfer such parcel in accordance with the provisions established hereunder. The appropriate financial official may assign or transfer any receivables either individually or in groups without regard to class, except for: (1) parcels with respect to which the taxpayer has entered into a payment agreement in accordance with the provisions of this section; (2) parcels which are part of the estate of a bankrupt; (3) parcels which the appropriate financial official has determined are or may be subject to a lien under the provisions of chapter 21E; and (4) such other categories of parcels as the commissioner may by guideline define or as the municipality, with the approval of the commissioner, may authorize by vote of its selectmen, town council, or city council and mayor. Two or more collectors, or 2 or more treasurers, may jointly assign their respective municipalities’ receivables in accordance with guidelines issued by the commissioner.
(c) Tax receivables so assigned or transferred by an appropriate financial official shall be sold subject to the following conditions:(1) The sale of tax receivables shall be by public sale to the most responsible and responsive offeror taking into consideration the following evaluation criteria: (i) the price proposed by the offeror; (ii) the offeror’s qualifications and experience; (iii) the offeror’s plan for communicating with the taxpayers; (iv) whether the offeror has a regular place of business in the commonwealth; (v) whether the offeror is in good standing with the department of revenue; and (vi) other criteria determined by the commissioner and the municipality. The sale shall provide for the option to purchase subsequent tax receivables subject to subsection (h) and any regulations that may be promulgated by the commissioner pursuant thereto.
(2) The sale price shall be equal to not less than (i) the amount assessed and due from the face value of the tax receivables sold hereunder and (ii) any unpaid accrued interest, statutory fees, penalties and charges owed to the municipality as of the date of sale of the tax receivables. Tax receivables may, with the approval of the town meeting, town council or city council and mayor, be sold either at a discount of not more than 50 per cent of the interest on the receivable or at a premium, under such terms as the commissioner may determine by regulations that shall be promulgated pursuant to this section. Such sale price or discounted sale price may reflect any interest accrued on any individual taxpayer receivable or related tax to the date of the sale of the right to receive payment of such tax. Any unpaid statutory fees and charges as of the date of the sale with respect to such individual taxpayer receivable or related tax shall continue to be payable to the municipality and shall be paid to it by the purchaser from the first amounts collected by the purchaser on such tax receivable unless otherwise received by such municipality.
(3) The purchaser shall pay the sale price to the appropriate financial official by certified or bank cashier’s check, or by such other transfer of funds authorized by the appropriate financial official under the terms of the sale.
(4) Any amounts paid, except amounts described in paragraph two if under a discount sale, subsequent to the satisfaction of the sale price for tax receivables in respect of an individual taxpayer receivable, by or on behalf of a taxpayer, shall be the sole property of the purchaser thereof, and if received by the municipality shall be paid promptly in accordance with the terms of the sale, to such purchaser. The municipality shall agree to receive payment of such amounts owing to the purchaser as are tendered to it by or on behalf of any taxpayer and to provide such payments to the purchaser in accordance with the terms of the sale and to issue municipal lien certificates with respect to the unpaid amounts of tax receivables.
(5) Any premium payment received by a municipality shall be deposited in the General Fund of such municipality and applied in such manner and for such purposes as provided by law for amounts in the General Fund.
(6) Any amounts paid by a purchaser to a municipality, exclusive of excess amounts received as described in paragraph (5), for any tax receivables that are not current tax receivables shall be segregated on the books of such municipality to the extent any such amount is in excess of any available funds deficit and shall be appropriated by the city council or town meeting or town council, as applicable, of such municipality only for purposes for which such municipality is authorized to borrow for a period of five years or more unless otherwise approved by the commissioner.
(7) The municipality shall provide the purchaser when tax receivables are sold with the name and address of each statutory notice third party to whom notice is due with respect to any taxpayer, individual taxpayer receivable or related tax.
(8) Whenever after the sale of any tax receivable the municipality shall receive a notice from a statutory notice third party in respect of the individual taxpayer receivable or related tax, the municipality shall make available to the purchaser a copy of such notice.
(9) A purchaser owning any tax receivable shall give notice to a taxpayer and to the appropriate municipality of the name, address, telephone number and preferred method of communication with said purchaser and any service agent acting on behalf of said purchaser within 12 business days of purchasing said tax receivable. Upon written request by the taxpayer in such form as may be determined by the municipality, the municipality shall furnish a copy of such information to the taxpayer within 12 business days of receiving such request. Whenever the purchaser or the service agent of such tax receivables shall change, the new purchaser or service agent shall provide the notice required herein within 12 business days of the effective date of such change.
(10) Except as provided for in the terms of the sale in accordance with regulations promulgated by the commissioner, no purchaser or service agent thereof may enter into an agreement with a taxpayer or with any party with interest in a parcel, that has the effect of requiring said taxpayer or interested party to pay more than said taxpayer or interested party could be required to pay to the municipality on account of the tax receivable owed to the municipality in accordance with the provisions of this chapter or chapter fifty-nine of the General Laws.
(d) The sale of tax receivables shall be without recourse to the municipality selling the same except as otherwise provided in this subsection.
(1) The agreement between a municipality and a purchaser for the sale of tax receivables may provide for the repurchase of such tax receivables that do not conform to the terms and conditions of such agreement for the amount paid by the purchaser plus actual costs incurred by the purchaser from the date of sale.
(2) The agreement between a municipality and a purchaser for the sale of tax receivables may provide for the repurchase at the election of the municipality of tax receivables inadvertently included in the sale that were excludable under the definition of the class to be assigned that was approved by the commissioner under subsection (b). Such repurchases at the option of the municipality shall take place not later than 6 months immediately following the assignment.
(3) If any individual taxpayer receivable (i) shall be abated or (ii) is less than the amount for which the tax receivable in respect thereof was purchased by the purchaser at the time of sale, then, in each case, the purchaser shall be reimbursed by the amount of such abatement or other reduction in the amount of the tax receivable. If such tax receivable was purchased for a discount as provided in paragraph (2) of subsection (c), the repurchase price or reimbursement shall be reduced by the same percentage by which the purchase price of the tax receivable was discounted. In lieu of any such repurchase or reimbursement, the municipality may provide a replacement tax receivable of the same fiscal year as the tax receivable to be replaced that, together with any cash provided by the municipality or the purchaser, shall equal such purchase price or reimbursement amount; provided, however, that a replacement tax receivable shall be of similar market value as the tax receivable that is being replaced. The replacement tax receivable shall be provided only after compliance with subsection (b).
(4) The reimbursement amount, pursuant to paragraph (3), shall include, in the case of abatement, interest accrued on such amount from the date of purchase by the purchaser to the date of repurchase or reimbursement by the municipality, calculated in accordance with the rate provided in section 69 of chapter 59.
(5) The obligation of the municipality to repurchase any tax receivable pursuant to paragraphs (1) and (2), or to reimburse the purchaser pursuant to paragraph (3), including any replacement tax receivable in lieu of such repurchase or reimbursement, shall be set forth in an agreement between the municipality and the purchaser thereof, and (i) such obligation shall not exceed 10 per cent of the aggregate purchase price received by the municipality from the purchaser, inclusive of any interest and statutory fees paid by such purchaser to the municipality; but in the case of any reimbursement pursuant to said paragraph (3), such reimbursement amount shall not be charged to such percentage limitation; and (ii) the maximum period of time during which a municipality shall remain obligated to repurchase any tax receivable shall not exceed the lesser of: (a) 3 years from the date a tax receivable was purchased from the municipality, and (b) the period ending on the date 6 months prior to the date on which the lien securing the individual tax liability would terminate pursuant to section 37.
(6) The limitations set forth in this subsection shall not apply in any case involving fraud or misrepresentation.
(e) The sale of tax receivables pursuant to this section shall not affect (i) the legal authority of the municipality with respect to any taxpayer or individual taxpayer receivable or related tax, including the granting of abatements pursuant to law, (ii) the security for the payment of the individual taxpayer receivable and any related tax, (iii) the accrual of interest or the rate thereof in respect of the delinquency of such individual taxpayer receivable and any related tax or (iv) the rights and remedies of each taxpayer in respect of such individual taxpayer receivable and any related tax. The rights and remedies of the purchaser of the right to receive payment of any individual taxpayer receivable shall be subrogated to all the rights and remedies of the municipality to receive and enforce payment of such individual taxpayer receivable and any related tax and interest accrued and to accrue thereon, including, without limitation, the right to take tax title in its own name in the same manner that the municipality is authorized to take tax titles. The said right to take tax title shall vest in the purchaser with the same force and effect as if such tax title had vested in the municipality, including the accrual of interest at the rate provided in section sixty-two for land taken or purchased by a town and not assigned; provided, however, that:(1) For purpose of calculating a municipality’s available funds, an individual tax receivable or related tax shall be treated as paid to the extent provided in guidelines or regulations issued by the commissioner upon the sale, assignment or transfer of such in accordance with the provisions of this section; provided, however, that for the purposes of issuance of municipal lien certificates, abatement and abatement appeal rights, the rights of the municipality with regard to the individual tax receivable or related tax are preserved in full.
(2) Notwithstanding the third paragraph of section sixty-two, subsequent to a duly authorized and executed sale or auction, a treasurer shall have no authority to adjust the amount of a tax title held by a purchaser on account of erroneous municipality utility bills or interest charges.
(3) The right of a municipality established under section twenty-nine shall remain with the municipality under the terms of any sale or auction pursuant to the provisions of this section and the purchaser shall not have the benefit of the assistance to collect taxes as authorized for a municipality by section thirty-three.
(4) A purchaser shall not have the right to take immediate possession of the land and collect the rent and income from such land as otherwise permitted under section fifty-three, except as necessary to meet a requirement of subsection (b), (c) or (e), as applicable, of the definition of “Owner”, or “Operator” in section two of chapter twenty-one E.
(5) For the purposes of subsection (d) of the definition of “Owner”, or “Operator” in section two of chapter twenty-one E, the taking of tax title by a purchaser shall be deemed a taking pursuant to section fifty-three, and the purchaser shall be deemed a city or town; provided, however, that the foregoing shall not prohibit the purchaser from the benefits of subsection (b) or subsection (c) of such definition, as otherwise applicable, to the extent that the purchaser meets the requirements thereof.
(6) No notice shall be required to be given to any statutory notice third party from the purchaser in connection with the taking of tax title by the purchaser unless and until the purchaser or its service agent receives actual notice of such statutory notice third party.
(f) A purchaser may use a service agent to act on its behalf, whether or not for compensation. The purchaser, or its service agent, shall maintain a record of all tax receivables so serviced, which shall contain the name and address of the taxpayer and the initial amount owing pursuant to each tax receivable, the amounts paid by or on behalf of the taxpayer liable for the individual tax receivable, the amount of any abatement thereof and of any amounts permitted by law to be added thereto, and the final disposition thereof. Such records shall be open to inspection by the appropriate financial official with respect to his municipality during normal business hours. Within seven business days of receipt by a purchaser of a request by an appropriate financial official, a purchaser or any service agent acting on its behalf shall provide a municipality with any and all records relating to any and all receivables sold, assigned or transferred to a purchaser by a municipality in the form provided for in the agreement between the municipality and the purchaser; provided, however, if such request by an appropriate financial official indicates that it is made on behalf of a taxpayer, such purchaser shall furnish the requested information within three business days by means of electronic transmission and follow such transmission, where appropriate, with information in the form provided for in the agreement between the municipality and the purchaser. Whenever a purchaser or the service agent shall perform any of the services for which a fee or charge is permitted by law and by the assignment or transfer agreement between the appropriate financial official and the purchaser to be added to the amount of the individual tax liability, the amount of the tax receivable may be increased by the amount of such fee or charge. All fees charged by a purchaser shall be established pursuant to a fee schedule approved by the commissioner and a copy of such fee schedule shall be provided to the appropriate financial official who shall maintain the same in the municipal office of the appropriate financial official. A copy of such shall be furnished to the taxpayer by the appropriate financial official upon request by the taxpayer. A municipality may charge the taxpayer for the actual cost of the copy.
(g) The sale agreement between a municipality and a purchaser shall include, but shall not be limited to, the following provisions:(1) The sale of tax receivables shall be recorded on a written instrument of transfer upon receipt of the purchase price by the appropriate financial official: (i) reciting that it is an assignment and transfer to the purchaser of the right to receive payment of the taxes identified therein pursuant to this section (ii) identifying all such individual tax liabilities associated with such sale and specifying the name, address and phone number of such purchaser, (iii) specifying the amount of the purchase price and (iv) signed and dated by the appropriate financial official.
(2) Upon receipt of the purchase price by the appropriate financial official pursuant to paragraph (3) of subsection (c), said instrument of transfer shall establish that all rights, title and interest of the municipality in an individual taxpayer receivable and the right of the municipality to receive payment of the individual taxpayer receivable, including interest accruing thereon after the date of sale to the purchaser, and any statutory fees and charges arising after said date of sale, shall thereupon be transferred and assigned to such purchaser; provided, however, that the municipality may collect amounts owing to such purchaser according to the provisions of paragraph (4) of subsection (c).
(3) Tax receivables may be assigned and transferred successively under the same terms and conditions and in the same manner as originally assigned and transferred, provided, however, that the instrument (i) shall be signed by the assignor or transferror and (ii) need not recite the purchase price.
(4) Each assignor or transferror shall provide the municipality with an original record of each instrument of transfer and the municipality shall maintain such instrument of transfer with its official records.
(5) All tax receivables sold in bulk in a single transaction may be identified in a single instrument of transfer, and it shall not be necessary for each such tax receivable to be identified in a separate instrument of transfer; provided, however, that the instrument of transfer shall identify by name the individual taxpayers contained therein.
(6) Where an instrument of transfer has been lost or destroyed, the purchaser of said instrument may file a notarized affidavit with the appropriate financial official of the municipality from which the tax receivable was purchased attesting under the pains and penalty of perjury to the loss or destruction of said instrument. Upon presentation of the notarized affidavit, the appropriate financial official shall on payment of a fee of ten dollars issue to the holder thereof an exact duplicate of the instrument.
(7) A fee schedule of all fees to be charged by the purchaser or service agent, provided however, that no fee other than the fees established in accordance with the fee schedule approved by the commissioner shall be attributed to any taxpayer receivable or charged to any taxpayer and provided further, that all such fees shall be reasonable in relation to the actual cost of the transaction.
(h) The purchaser of an individual tax receivable on any parcel of real estate shall have the right to purchase any subsequent delinquent individual tax receivable on the same parcel in accordance with the terms of sale of the original agreement, except that there shall be no discount or premium; the price of such subsequent receivable shall be the amount assessed together with any accrued interest, charges and fees. There shall be no requirement of notice or publication with respect to the transfer of such subsequent receivables, notwithstanding the provisions of subsection (b).
(i) The amount owed by a taxpayer for an individual taxpayer receivable may be redeemed by said taxpayer upon payment to the purchaser then holding the right to receive said receivable in an amount equal to the sum of the following: (1) the amount of delinquent taxes, penalties, interest, charges and fees that stand charged against the parcel as shown on the instrument of transfer evidencing the tax receivable; and (2) interest at the rate provided by law accruing on said receivable from the date said tax receivable was purchased until the date said tax receivable is redeemed.
(j) The commissioner shall make and from time to time revise such rules, regulations and guidelines as he determines necessary and appropriate to implement the provisions of this section.
Chapter 60: Section 3. Tax bills; notices; affidavits of sending Section 3. The collector shall forthwith, after receiving a tax list and warrant, send notice to each person assessed, resident or non-resident, of the amount of his tax; if mailed, it shall be postpaid and directed to the town where the assessed person resided on January first of the year in which the tax was assessed, and, if he resides in a city, it shall, if possible, be directed to the street and number of his residence. If the tax is a tax on real estate, the collector shall send a separate bill or notice for the portion of the tax applicable to each parcel of real estate separately assessed. An omission to send a notice under this section shall not affect the validity either of a tax or of the proceedings for its collection. An affidavit of the collector or deputy collector sending a tax bill or notice as to the time of sending shall be prima facie evidence that the same was sent at such time. All tax bills or notices issued pursuant to this section shall state (a) the date as of which the tax was assessed and (b) the fiscal year to which the tax relates. The tax notice and bill shall state that all payments shall be to or to the order of the city, town or district and not to or to the order of any officer, board or commission.
The collector may send the notice required by this section to an owner who has acquired title by a deed duly recorded subsequent to January first in the year in which said tax was assessed.
Chapter 60: Section 30. Certificate of commitment Section 30. A collector who commits a person to jail pursuant to a warrant to distrain or commit shall give to the keeper thereof a certificate signed by him stating that he has committed the person for nonpayment of his tax and for want of goods and chattels whereof to make distress and setting forth the amount said person shall pay for said tax, interest, charges and fees.
Chapter 60: Section 31. Release of imprisoned taxpayers; proceedings Section 31. The notice required by chapter two hundred and twenty-four to be given to a creditor may be given to any one of the assessors or to the collector of the city or town where the tax was assessed, any of whom may appear at the examination and do all other things which a creditor might do upon such supplementary proceedings. If a debtor is unable to pay such tax, he may be discharged in the manner provided under such proceedings.
Chapter 60: Section 32. Liability of collector for taxes, etc.
, after discharge Section 32. The collector shall be liable for the tax and the charges of imprisonment of a person discharged, unless he arrested and committed such person within two years after the tax was committed to him for collection, or unless he shall be exonerated therefrom by the town to which the tax is due.
Chapter 60: Section 33. Aiding collector Section 33. A collector who is resisted or impeded in the exercise of the duties of his office may require any suitable person to aid him.
Chapter 60: Section 34. Warrants; release after service; rearrest Section 34. If a tax assessed upon a person remains unpaid for fourteen days after demand therefor, a warrant to collect shall issue, and, thereafter, a warrant to distrain or commit may issue pursuant to section twenty-nine; but a collector or his designee to whom the court issues the warrant to distrain or commit may request that the court suspend the commitment of the taxpayer for a period of time not exceeding fourteen days and after such time if that person has not paid his tax, with all fees and charges due thereon, including the fee for service of said warrant and travel as provided by section fifteen, said officer shall then arrest said person on the aforesaid warrant, and commit him to the jail of the county where he makes the arrest or of the county wherein the city or town in which the tax is payable lies. The warrant shall run throughout the commonwealth, and any officer to whom it is directed as aforesaid may serve it and apprehend the person in any county.
Chapter 60: Section 34A. Bond; release of delinquent taxpayer from custody Section 34A. A person shall not be committed to jail for the non-payment of a tax, nor shall a person so committed be further detained therein, if he gives to the collector or to the officer charged with the service of the collector’s warrant a bond running to the collector sufficient in amount to cover the amount of the tax and all interest and other charges and fees which are or may become due thereon, conditioned to pay the same to the collector or officer within thirty days thereafter or within such further time as the collector or officer may fix, and with such surety or sureties as the collector or officer or a master in chancery may approve. A person shall not be committed for such non-payment until he has been given a reasonable time to procure such a bond.
Chapter 60: Section 35. Actions against delinquent taxpayers Section 35. If a tax which has been committed to a collector remains unpaid after it has become due and payable, it may be recovered in an action of contract or in any other appropriate action, suit or proceeding brought by the collector either in his own name or in the name of the town against the person assessed for such tax.
Chapter 60: Section 36. Collection from decedents’ estates Section 36. If a person assessed for a tax dies or becomes insolvent before the payment thereof, or if a tax is assessed upon the estate of a deceased person, the executor, administrator or assignee shall, if a demand has been made on him therefor, forthwith on receipt of any money applicable to the payment of the tax, pay the same, and in default shall be personally liable therefor as for his own tax.
Chapter 60: Section 37. Lien of taxes on land; duration; sale; title Section 37. Taxes assessed upon land, including those assessed under sections twelve, thirteen and fourteen of chapter fifty-nine, shall with all incidental charges and fees be a lien thereon from January first in the year of assessment. Except as provided in section sixty-one, such lien shall terminate at the expiration of three years and six months from the end of the fiscal year for which such taxes were assessed, if in the meantime the estate has been alienated and the instrument alienating the same has been recorded, otherwise it shall continue until a recorded alienation thereof, but if while such lien is in force a tax sale or taking is made, and the deed or instrument of taking has been duly recorded within sixty days, but the sale or taking is invalid by reason of any error or irregularity in the proceedings subsequent to the assessment, the lien and also the lien or liens for any subsequent taxes or charges which have been added to the tax title account under authority of section sixty-one shall continue for ninety days after a surrender and discharge under section forty-six or a release, notice or disclaimer under sections eighty-two to eighty-four, inclusive, has been duly recorded, or for ninety days after the sale or taking has been finally adjudged invalid by a court of competent jurisdiction. If at any time while a lien established by this section is in force, a sale or taking cannot in the opinion of the collector be legally made because of any federal or state law or because of any injunction or other action of, or proceeding in, any federal or state court or because of the action of any administrative body, the lien, if the statement provided for in section thirty-seven A is filed, shall continue as provided in said section thirty-seven A, subject, however, to any lawful action under any paramount authority conferred by the constitution or laws of the United States or the constitution of the commonwealth. Said taxes, if unpaid for fourteen days after demand therefor, may, with said charges and fees, be levied by sale or taking of the real estate, if the lien or liens thereon have not terminated. No tax title and no item included in a tax title account shall be held to be invalid by reason of any error or irregularity which is neither substantial nor misleading, whether such error or irregularity occurs in the proceedings of the collector or the assessors or in the proceedings of any other official or officials charged with duties in connection with the establishment of such tax title or the inclusion of such item in the tax title account.
Chapter 60: Section 37A. Sales, etc.
, that cannot be legally made; statements by collectors Section 37A. If at any time while a lien established by section thirty-seven of this chapter or under chapter eighty or chapter eighty-three is in force, a sale or taking cannot in the opinion of the collector be legally made because of any federal or state law or because of any injunction or other action of, or proceeding in, any federal or state court or because of the action of any administrative body, the collector may file with the register of deeds for record or registration, as the case may be, a statement reciting that the statement is filed pursuant to this section to continue, until abatement or payment, the lien for a tax or assessment in an amount stated, which need not include accrued interest and costs, assessed for a year or on a date specified to a person or persons named upon an estate described. The statement shall also recite the reason why, in the opinion of the collector, a sale or taking cannot then be legally made; but any error or omission in the recitation of such reason shall not affect the validity of such statement. The filing of such statement for record or registration shall operate to extend the time within which a sale or taking may lawfully be made by continuing until payment or abatement of the lien for such tax or assessment and all assessments or portions thereof, rates and charges of every nature which have been added to or become a part thereof; but the filing of such statement shall not discharge the collector from liability upon his bond for failure to collect such tax, assessment or portion thereof, rate or charge, and the collector shall proceed to sell or take the land within six months after he first gets notice that the disability has been removed. The collector at any time may, and upon the payment or abatement of the tax to which such statement relates shall, file a renunciation of all rights under such statement; and the provisions relative to the recordation of such statement shall apply to the recordation of such renunciation.
Chapter 60: Section 37B. Certification of amounts necessary for taking land under Sec. 37 Section 37B. The collector of taxes shall certify in writing to the board of assessors the amounts necessary for the taking of land under the provisions of section thirty-seven. The board of assessors shall include the amounts so certified in computing the amount to be raised under the provisions of section twenty-three of chapter fifty-nine.
Chapter 60: Section 38. Mortgagees; notice requiring demand for payment Section 38. If a mortgagee of land situated in the place of his residence, before July first of the year in which the tax is assessed, gives written notice to the collector that he holds a mortgage on land, with a description of the land, the demand for payment shall be made on the mortgagee instead of the mortgagor.
Chapter 60: Section 39. Service of tax notice; designating place Section 39. If a mortgagee or an owner of land causes a notice, designating a place in the town where such land lies at which all papers relative to taxes on such land which are to be served on him may be left, to be recorded in January of any year in the office of the clerk of such town and, during said month, to be delivered to the collector thereof, the collector shall serve at such place any notice, demand for payment or other paper relating to the taxes on such land which is to be served by him. The collector shall not advertise the sale of such land for two months after the time of a demand so made.
Chapter 60: Section 3A. Form of bill or notice; nonpolitical municipal informational material Section 3A. Every bill or notice shall be in a form approved by the commissioner and shall summarize the deadlines under section fifty-nine of chapter fifty-nine for applying for abatements and exemptions. Every bill or notice shall also have printed on it the last date for the assessed owner to apply for abatement and for exemptions under clauses other than those specifically listed in said section fifty-nine of said chapter fifty-nine. Except in the case of a bill or notice for reassessed taxes under section seventy-seven of said chapter fifty-nine, every bill shall also have printed on it the last date on which payment can be made without interest being due. If a bill or notice contains an erroneous payment or abatement application date that is later than the date established under said chapter fifty-nine, the date printed on the bill or notice shall be the deadline for payment or for applying for abatement or exemption, but if the error in the date is the wrong year, the due date shall be the day and month as printed on the bill but for the current year. The commissioner may require, with respect to any city or town, that the tax bill or notice include such information as he may determine to be necessary to notify taxpayers of changes in the assessed valuation of the property. Every bill or notice for real or personal property tax shall have printed thereon in a conspicuous place the tax rate for each class within the town, as determined by the assessors. In addition, every bill or notice for a tax upon real property shall identify each parcel separately assessed by street and number or, if no street number has been assigned, by lot number, name of property or otherwise, shall describe the land, buildings and other things erected on or affixed to the property and shall state for each such parcel the assessed full and fair cash valuation, the classification, the residential or commercial exemption, if applicable, the total taxable valuation and the tax due and payable on such property.
The collector in a city or town may, with the approval of the board of selectmen, or mayor, as the case may be, include in the envelope in which property tax bills are to be mailed nonpolitical municipal informational material so long as the mailing of such material so included does not cause an increase in the postage required for the mailing of the tax bill.
Chapter 60: Section 3B. Suspension of payment; assessments reduced by exemptions Section 3B. A person entitled to exemption under clause seventeenth of section five of chapter fifty-nine in respect to any real estate upon which an assessment for a permanent public improvement, payable to a city or town and required by law to be placed on the annual tax bill, has been made, may, not later than the last day for petitioning the assessors for an abatement of the local tax under section fifty-nine of said chapter fifty-nine, apply to the assessors of such city or town for suspension of the payment of such assessment for and during such time as the annual tax on said real estate is reduced by such exemption, and the assessors may thereupon, with the approval of the commissioner, order such suspension; provided, that such assessment, with interest thereon accrued prior to such suspension and with interest thereon from the day on which such estate ceases to be exempt, unless sooner paid, shall continue to be a lien upon such real estate until the expiration of two years after the termination of the period of such suspension, or, in case the assessment has been apportioned, until two years after the last portion is payable. Such assessment shall not bear interest during the period of such suspension.
Chapter 60: Section 3C. City or town scholarship fund; donation; deposits; distribution Section 3C. Any city or town which accepts the provisions of this section or has previously accepted chapter one hundred and ninety-four of the acts of nineteen hundred and eighty-six is hereby authorized, subject to the approval of the commissioner, to design and designate a place on its municipal tax bills, or the motor vehicle excise tax bills, or to mail with such tax bills a separate form, whereby the taxpayers of said city or town can voluntarily check off, donate and pledge an amount not less than one dollar or such other designated amount which shall increase the amount otherwise due, and to establish a city or town scholarship fund, the purpose of which shall be to provide educational financial aid to deserving city and town residents in accordance with this section and to establish a city or town educational fund, the purpose of which shall be to provide supplemental educational funding for local educational needs or to provide funding for existing adult literacy programs.
Any amounts donated to the scholarship fund or educational fund shall be deposited into a special account in the general treasury and shall be in the custody of the treasurer. The treasurer shall invest said funds at the direction of the officer, board, commission, committee or other agency of the city or town who or which is otherwise authorized and required to invest trust funds of the city or town and subject to the same limitations applicable to trust fund investments, except as otherwise specified herein. Interest earned upon such fund shall remain therewith and shall be used for the purpose of said fund without further appropriation.
In any city or town establishing a scholarship fund, there shall be a scholarship committee and educational fund committee to consist of the superintendent of the city or town schools or designee thereof, and no fewer than four residents of the city or town appointed by the board of selectmen to a term of three years. The scholarship committee or educational fund committee shall select the recipients of and amounts of financial aid from the scholarship fund and educational fund and shall be guided by any criteria established by the scholarship committee or educational fund committee subject to any ordinance or by-law and further subject to the following criteria:(a) The recipients of financial aid must be residents of the city or town at the time the financial aid is first awarded and have been accepted to pursue education beyond the secondary school level at an institution deemed accredited by the committee.
(b) The committee shall take into consideration each recipients financial need, character, scholastic record and involvement in community work as well as extracurricular school activities.
The scholarship committee may distribute financial aid from both interest and principal of the fund, without further appropriation. The scholarship committee shall establish a procedure for determining at least on an annual basis the amounts or percentage of the funds that shall be authorized for distribution and for notifying the investing officer or agency so that the funds may be made available in a timely manner and with a minimum of penalties.
Chapter 60: Section 3D. City or town aid to elderly and disabled taxation fund; voluntary check off donations Section 3D. A city or town which accepts the provisions of this section is hereby authorized, subject to the approval of the commissioner, to design and designate a place on its municipal tax bills, or the motor vehicle excise tax bills, or to mail with such tax bills a separate form, whereby the taxpayers of said city or town may voluntarily check off, donate and pledge an amount not less than $1 or such other designated amount which shall increase the amount otherwise due, and to establish a city or town aid to the elderly and disabled taxation fund for the purpose of defraying the real estate taxes of elderly and disabled persons of low income.
Any amounts donated to said fund shall be deposited into a special account in the general treasury and shall be in the custody of the treasurer. The treasurer shall invest said funds at the direction of the officer, board, commission, committee or other agency of the city or town who or which is otherwise authorized and required to invest trust funds of the city or town and subject to the same limitations applicable to trust fund investments, except as otherwise specified herein. The fund, together with the interest earned thereon shall be used for the purpose specified in this section without further appropriation.
In any city or town establishing an aid to the elderly and disabled taxation fund, there shall be a taxation aid committee to consist of the chairman of the board of assessors, the city or town treasurer and three residents of the city or town to be appointed by the mayor or board of selectmen as the case may be. Said board shall adopt rules and regulations to carry out the provisions of this section and to identify the recipients of such aid.
Chapter 60: Section 3E. Application of partial payments Section 3E. Partial payments of bills for taxes, excises or municipal charges and fees, including partial payments under sections 22 and 62, shall be applied first to any interest due, then to collection charges, that have been added to the bills, unless the amount of the interest and charges taken together may be waived and the collector or other officer responsible for collecting the bills determines that the partial payment should be first applied to the underlying obligation.
Chapter 60: Section 4, 5. Repealed, 1963, 160, Sec. 26 Chapter 60: Section 40. Notice of sale;contents Section 40. The collector shall give notice by publication of the time and place of sale of land for nonpayment of taxes. Such notice shall contain a substantially accurate description of the several rights, lots or divisions of the land to be sold, which shall be furnished to the collector by the assessors upon demand of the collector, the amount of the tax assessed on each, and the names of all owners known to the collector. Such notice of the sale of the undivided real estate of a deceased person assessed to his heirs or devisees or assessed in general terms to his estate shall contain the names of all the heirs or devisees interested in such real estate, if the probate records of the county where the land lies disclose their identity.
Chapter 60: Section 41. Description in case of change of local name Section 41. If land to be sold is situated in a town the name of which has been changed by law within three years preceding the sale, the collector shall designate such town in his notices of the sale by both its former and existing name.
Chapter 60: Section 42. Notice of sale; posting Section 42. The collector shall, fourteen days before the sale, post a notice similar to that required by section forty in two or more convenient and public places.
Chapter 60: Section 43. Conduct of sale, etc. Section 43. If the taxes are not paid, the collector shall, at the time and place appointed for the sale, sell by public auction, for the amount of the taxes and interest, if any, and necessary intervening charges, the smallest undivided part of the land which will bring said amount, or the whole for said amount, if no person offers to take an undivided part; and shall at such sale require of the purchaser an immediate deposit of such sum as he considers necessary to insure good faith in payment of the purchase money, and, on failure of the purchaser to make such deposit forthwith, the sale shall be void and another sale may be made as provided in this chapter. The word “taxes”, as used in the provisions of this and the following sections of this chapter relating to collection by sale or taking of any parcel of land shall, so far as pertinent, include all taxes, assessments or portions thereof, rates and charges of every nature which constitute a lien upon such parcel and which have lawfully been placed upon the annual tax bill of a municipality or of a district wholly or partly located within its limits. The collector, on behalf of such municipality and district or either of them, shall make a single sale or taking of any parcel of land for all unpaid taxes as so defined. If the municipality purchases or takes the land in such case, the proceeds received upon redemption of the tax title or upon a sale following foreclosure of the right of redemption shall be applied first to taxes assessed on account of the municipality under chapter fifty-nine, including interest thereon, and all costs, charges and terms of redemption in any way resulting from such sale or taking, second to any district taxes, including interest thereon, in the order in which they were committed to the collector, and the balance to other assessments or portions thereof, rates and charges, including interest thereon, in the order in which they were committed to the collector.
Chapter 60: Section 44. Adjournment Section 44. The collector may adjourn the sale from time to time not exceeding seven days in all, and shall give notice of every adjournment by a public declaration thereof at the time and place appointed for the sale.
Chapter 60: Section 45. Collector’s deed; contents; effect Section 45. The collector shall execute and deliver to the purchaser a deed of the land, stating the cause of sale, the price for which the land was sold, the name of the person on whom the demand for the tax was made, the places where the notices were posted, the name of the newspaper in which the advertisement of the sale was published, and the residence of the grantee, and shall contain a warranty that the sale has in all particulars been conducted according to law. The deed shall convey the land to the purchaser, subject to the right of redemption. The title thus conveyed shall, until redemption or until the right of redemption is foreclosed as hereinafter provided, be held as security for the repayment of the purchase price, with all intervening costs, terms imposed for redemption and charges, with interest thereon, and the premises conveyed, both before and after either redemption or foreclosure, shall also be subject to and have the benefit of all easements and restrictions lawfully existing in, upon or over said land or appurtenant thereto, and, except as provided in section seventy-seven, all covenants and agreements running with said premises either at law or in equity, when so conveyed. Such deed shall not be valid unless recorded within sixty days after the sale. If so recorded it shall be prima facie evidence of all facts essential to the validity of the title thereby conveyed, whether the deed was executed on or before as well as since July first, nineteen hundred and fifteen. No sale hereafter made shall give to the purchaser any right to possession of the land until the right of redemption is foreclosed, as hereinafter provided.
Chapter 60: Section 46. Defective titles; reimbursement of purchasers; reassessment Section 46. If it subsequently appears that, by reason of an error, omission or informality in the assessment or the sale, the purchaser has no claim upon the property sold, he may within six months after the date of the deed, offer by writing given to the collector to surrender and discharge his deed or to assign and transfer to the town all his right, title and interest in the premises, as the collector shall elect. Such offer shall contain a specific statement of the reason why the holder has no claim on the land sold, with the evidence on which he relies, and if such evidence consists of any public record or of facts shown therein, such offer shall contain a specific reference thereto. Upon such surrender and discharge or assignment and transfer, the town shall pay to the purchaser the amount which he paid, with interest at the rate of eight per cent per annum, which payment shall be in full for all damages for any defects in the proceedings or under the warranty in such deed. No town and no treasurer or collector thereof shall pay or be liable for any amount due under this section unless such statement is filed.
Upon such payment except in case an assignment and transfer is given to the town, the collector shall cause a surrender and discharge of the tax title deed to be recorded in the proper registry of deeds; and thereupon, if the error, omission or informality by reason of which it appears that the purchaser has no claim upon the property sold occurred in the assessment of the tax or assessment, the collector shall notify the board by which the tax or assessment was laid, which shall forthwith reassess it as provided in section seventy-seven of chapter fifty-nine, and if it occurred in the proceedings of the collector, he shall forthwith proceed to collect the unpaid tax or assessment in conformity to law.
Chapter 60: Section 47. Tax title owners; filing required statements Section 47. Whoever has a title to land under a sale for non-payment of taxes or other assessment and is a resident of the town where such land lies shall file with the treasurer thereof and in the registry of deeds a statement of his residence and place of business, with the street and number, if any. Such person, who is not a resident of such town or who removes therefrom, shall appoint an agent residing therein, or in the town where the tax deed is recorded, authorized to release such land. He shall also file the statement above required in which he shall also state the name of such agent and his residence and place of business, with the street and number, if any. Whenever a person holding a tax title changes his residence or place of business or agent, he shall file a new certificate. Tender of payment to, and service of process upon, such agent shall be a sufficient tender to, or service upon, the holder of such tax title.
Chapter 60: Section 48. Insufficient bids; municipality as purchaser; collector’s duties Section 48. If at the time and place of sale no person bids for the land offered for sale an amount equal to the tax and charges, and if the sale has been adjourned one or more times, the collector shall then and there make public declaration of the fact; and, if no bid equal to the tax and charges is then made, he shall give public notice that he purchases for the town by which the tax is assessed said land as offered for sale at the amount of the tax and the charges and expenses of the levy and sale. Said amount, together with the cost of recording the deed of purchase, shall be allowed him in his settlement with such town, provided he has caused the deed to be duly recorded within sixty days after the purchase and to be delivered to the town treasurer.
Chapter 60: Section 49. Purchase price unpaid; validity of sale Section 49. If the purchaser fails to pay the collector within twenty days after the sale the amount bid by him, the sale shall be void, and the town shall be deemed to be the purchaser of the land, under the preceding section.
Chapter 60: Section 50. Municipalities as purchasers; deeds; tax title accounts; foreclosures Section 50. If the town becomes the purchaser, the deed to it, in addition to the statements required by section forty-five, shall set forth the fact that no sufficient bid was made at the sale or that the purchaser failed to pay the amount bid, as the case may be, and shall confer upon such town the rights and duties of an individual purchaser. Every such deed and every instrument of taking described in section fifty-four shall be in the custody of the town treasurer, and there shall be set up on the books of the town, whether kept by the treasurer or otherwise, a separate account of each parcel of land covered by any such deed or instrument, to which shall be charged the amount stated in the deed or instrument, the cost of recording the same, and, upon certification in accordance with section sixty-one, all uncollected taxes assessed to such parcel for any year subsequent to that for the taxes for which such parcel was purchased or taken, with all legal costs and charges thereon, including interest accrued up to the date of such certification, until redemption, foreclosure or assignment. The tax title account hereby required to be kept, or a duly authenticated copy thereof, shall be prima facie evidence of all facts essential to the determination of the amount necessary for redemption. The town treasurer shall institute proceedings for foreclosure as soon as such proceedings are authorized by sections sixty-two and sixty-five. The commissioner may at his discretion institute proceedings in the name of the treasurer in the event that such proceedings are not instituted by the treasurer. Any expense incurred by the commissioner hereunder shall be assessed against the city or town and collected in the same manner as expenses for auditing municipal accounts under the provisions of section forty-one of chapter forty-four.
Chapter 60: Section 50A. Municipalities; land held under tax sales; protecting interests Section 50A. In the event of the filing of a certificate under clause (38) of section five of chapter forty in respect to any particular real estate held by a town under a purchase or taking for non-payment of taxes, the collector shall make a written demand upon the owner of record thereof requiring that he take certain specified action to preserve, care for or maintain the same or protect by insurance or otherwise the town’s interest therein, within a period fixed in the demand the expiration of which, except in case of emergency, shall be not earlier than seventy-two hours after the date on which the service of said demand is completed. Said demand shall be served upon such owner of record by mailing the same to him at his last known residence or place of business, postage prepaid, and by posting a copy thereof upon such real estate. In default of action in compliance with such demand, the town may proceed to take the specified action and the expenses incurred on account thereof shall be included in the tax title account for such real estate and be treated in all respects as part of the legal costs and charges of collection.
Chapter 60: Section 50B. Municipalities; foreclosure proceedings; appropriations Section 50B. Every city or town shall include in its annual budget the amount estimated by its treasurer as the amount necessary for land court proceedings for tax title foreclosure; provided, that the amount so included shall be not less than eighty dollars for each tax title ripe for foreclosure held by said city or town as security for the payment of taxes involving property having a current assessed valuation in excess of one thousand dollars.
If in any year the amount so estimated is not included in the budget as finally passed the treasurer shall certify in writing to the assessors such portion of the amount estimated in accordance with the preceding paragraph as has not been provided and the assessors shall raise in the assessment for such year the amount certified to them by the treasurer and thereupon said amount shall be added to the treasurer’s appropriation and may be expended by said treasurer for necessary land court proceedings for tax title foreclosure.
Chapter 60: Section 51. Several parcels of small value; sale together Section 51. If unimproved and unoccupied land does not exceed four thousand square feet in area, or is laid out in lots or parcels no one of which exceeds such area, and the taxes unpaid for any one year do not exceed fifty cents on such land, or on any such lot or parcel thereof, the collector may give notice of the sale by publication of an advertisement stating the name of the owner of record of each lot on January first of the year of assessment, the tax due thereon and the number of such lot on a street, way or plan, without further description thereof. The collector may convey in one deed to the same purchaser or convey to the town any number of the lots so advertised and sold, and said deed shall state the name of said owner of record of each lot conveyed therein, on January first of said year, the amount of the taxes and costs due for each lot, and the number on the street, way or plan of each lot respectively, and need contain no further description of the lot, owner or amount due. The cost of the sale shall be apportioned equally among all the lots sold, and the cost of the deed shall be apportioned equally among all the lots conveyed thereby.
Chapter 60: Section 52. Management and sale of land acquired for taxes Section 52. Cities and towns may make regulations for the possession, management and sale of land purchased or taken for taxes, not inconsistent with law, regulations promulgated by the department of revenue or the right of redemption. The treasurer of any city or town holding 1 or more tax titles may assign and transfer such tax title or titles, individually or bundled, to the highest bidder after a public auction, after having given 14 days’ notice of the time and place of such public auction by publication, which shall conform to the requirements of section 40, and having posted such notice in 2 or more convenient and public places in said city or town, provided that the sum so paid for such assignment is not less than the amount necessary for redemption, and may execute and deliver on behalf of the city or town any instrument necessary therefor. The treasurer shall send notice of the intended assignment to the owner of record of each parcel at his last known address not less than 10 days prior to the assignment, but failure to receive such notice shall not affect the validity of the assignment. The instrument of assignment shall be in a form approved by the commissioner and shall be recorded within 60 days from its date and if so recorded shall be prima facie evidence of all facts essential to its validity. The instrument of assignment shall, for each parcel assigned thereunder, state the amount for which the tax title on the parcel could have been redeemed on the date of the assignment, separately stating for each parcel the principal amount and the total interest accrued until the date of assignment. The principal amount shall be the sum of the amounts for which the parcel was taken and amounts subsequently certified under section 61. Except as hereinafter otherwise provided, all provisions of law applicable in cases where the original purchaser at a tax sale is another than the city or town shall thereafter apply in the case of such an assignment, as if the assignee had been a purchaser for the original sum at the original sale or at a sale made at the time of the taking and had paid to the city or town the subsequent taxes and charges included in the sum paid for the assignment. Any extension of the time within which foreclosure proceedings may not be instituted granted by a city or town treasurer prior to assignment shall be binding upon the assignee.
Chapter 60: Section 53. Taking for taxes; notice Section 53. If a tax on land is not paid within fourteen days after demand therefor and remains unpaid at the date of taking, the collector may take such land for the town, first giving fourteen days’ notice of his intention to exercise such power of taking, which notice may be served in the manner required by law for the service of subpoenas on witnesses in civil cases or may be published, and shall conform to the requirements of section forty. He shall also, fourteen days before the taking, post a notice so conforming in two or more convenient and public places.
Whenever the collector of taxes of a city or town shall have taken land therein he may, in the name and on behalf of said city or town, take immediate possession of such land and, until the tax title so acquired is redeemed, collect the rent and other income from such land, which rent and income, after the payment therefrom of all necessary expenses in the care, repair and management of such land, shall be applied on account of the taxes, assessments, rates, charges, interest and costs due said city or town on said land, with any balance remaining being paid to the person otherwise entitled thereto. Upon petition of any person having a right to redeem such tax title, the superior court for the county within which the land lies, if it adjudges justice and the circumstances so warrant, may, upon such terms as it shall deem equitable, enjoin a taking of possession under this section or command the surrender of a possession taken.
Neither said city or town nor any of its officers, agents or employees shall be liable or accountable to the owner or to any other person having an interest in such land for failure to collect rent or other income therefrom; and neither said city or town nor any of its officers, agents or employees shall be liable for injury or damage caused by the possession of land under the section to such land or to the person or property of any person.
Chapter 60: Section 54. Instrument of taking; form; contents; effect Section 54. The instrument of taking shall be under the hand and seal of the collector and shall contain a statement of the cause of taking, a substantially accurate description of each parcel of land taken, the name of the person to whom the same was assessed, the amount of the tax thereon, and the incidental expenses and costs to the date of taking. Such an instrument of taking shall not be valid unless recorded within sixty days of the date of taking. If so recorded it shall be prima facie evidence of all facts essential to the validity of the title so taken, whether the taking was made on or before as well as since July first, nineteen hundred and fifteen. Title to the land so taken shall thereupon vest in the town, subject to the right of redemption. Such title shall, until redemption or until the right of redemption is foreclosed as hereinafter provided, be held as security for the repayment of said taxes with all intervening costs, terms imposed for redemption and charges, with interest thereon, and the premises so taken, both before and after either redemption or foreclosure, shall also be subject to and have the benefit of all easements and restrictions lawfully existing in, upon or over said land or appurtenant thereto, and, except as provided in section seventy-seven, all covenants and agreements running with said premises either at law or in equity, when so taken.
Chapter 60: Section 55. Fees for taking Section 55. If land has been so taken there shall be allowed to the collector and added to the tax the charges and fees fixed by section fifteen, and also the cost of recording the instrument of taking, provided he has caused such instrument to be duly recorded within sixty days after the taking and to be delivered to the town treasurer.
Chapter 60: Section 56. Taking in name of one of several owners; extent of taking Section 56. The assessment, sale or taking may be made in the name of one or more of the record owners at the date of assessment, and if so made, shall, subject to section forty-three, be deemed to be in the name of the owner thereof. Every such sale or taking shall be of the whole estate and not of the undivided interest of any joint owner thereof.
Chapter 60: Section 57. Affidavit of collector, etc.
; evidence Section 57. The affidavit of the collector, deputy collector or disinterested person reciting the proceedings required by law in the sale of land for taxes, with copies of the advertisement and notices annexed thereto, recorded within three months after such sale in the registry of deeds, shall be competent evidence of demand, notice and service.
Chapter 60: Section 57A. Payment by check not duly paid; penalty Section 57A. If any check in payment of any tax, interest, penalty, fee or other charge imposed under chapters fifty-nine to sixty-one A, inclusive, or chapter eighty or for any other municipal service rendered is not duly paid there may, in addition to any other penalties provided by law, be paid as a penalty by the person who tendered such check, upon notice and demand by the city or town tax collector, in the same manner as the tax or other amount to which the check relates, an amount equal to one percent of the amount of such check; provided, however, that if the amount of such check is less than two thousand five hundred dollars, the penalty under this section shall be twenty-five dollars. Any person upon whom such a penalty is imposed may appeal to the commissioner who shall abate the same if he determines that such person tendered such check in good faith and with reasonable cause to believe that it would be paid.
Chapter 60: Section 58. Payments by mortgagee; addition to debt Section 58. If the whole or any portion of a tax on land remains unpaid after it is due, the holder of a mortgage upon the land may pay to the collector such amount as is due and unpaid, with the accrued charges and expenses; and the amount so paid may be added to the mortgage debt.
Chapter 60: Section 59. Payments by mortgagors or mortgagees Section 59. If a tax on land is assessed to a mortgagor and mortgagee separately, any part thereof remaining unpaid on October first following its assessment may be paid by either party. If a mortgagee pays a tax, interest or costs thereon which by law or by the terms of the mortgage was payable by the mortgagor, the amount so paid shall be added to the mortgage debt. If it is by law or by the terms of the mortgage payable by the mortgagee, and is paid by the mortgagor, the amount so paid shall be deducted from the mortgage debt unless the parties have, in writing, otherwise agreed.
Chapter 60: Section 6. Books containing tax lists; duty to keep Section 6. The collector shall make and keep the book containing the tax list committed to him or, with the written approval of the commissioner of revenue, on a mechanically or electronically prepared record, against the name of every person assessed for a tax, entries showing the disposition thereof, whether reassessed, abated or paid, and the date of such disposition.
Chapter 60: Section 60. Payments by other than fee owners Section 60. If a person other than the owner of the fee rightfully pays the taxes assessed on land to the collector or treasurer, before a taking or sale, the collector or treasurer shall at the request of the person so paying give him a certificate of such payment stating the name of the person to whom the land is taxed, of the person paying the tax, and a substantially accurate description of the land. Such collector or treasurer shall charge one dollar for each certificate so issued, and the money so received shall be paid into the town treasury. Such certificate being recorded in the registry of deeds within thirty days from its date shall be notice to all persons of such payment and of the lien therefor. A person whose tax is paid by another shall upon repaying the same have the same right to recover it from the town, if illegally assessed, which he would have had if the tax had been paid by him under written protest.
Chapter 60: Section 61. Taxes subsequent to sale or taking Section 61. Whenever a town shall have purchased or taken real estate for payment of taxes the lien of the town on such real estate for all taxes assessed subsequently to the assessment for payment of which the estate was purchased or taken shall continue, and it shall be unnecessary for the town to take or sell said real estate for non-payment of said subsequent taxes, costs and interest; and on redemption from such taking or purchase, said subsequent taxes, costs and interest shall be paid to the town, and the payment shall be made a part of the terms of redemption, except that if any of the said subsequent taxes have not been certified by the collector to the treasurer to be added to the tax title account, then redemption may be made by payment only of the amount of the tax for which the estate was purchased or taken and of such subsequent taxes as shall have been so certified, together with costs and interest. The collector shall certify to the treasurer not later than September first of the year following that of their assessment all subsequent taxes which become part of the terms of redemption and the treasurer shall give him a certificate stating that the amount or amounts have been added to the tax title account or accounts and the collector shall be credited as if the tax had been paid in money. A city or town which has assigned a tax title held by it shall, after such assignment, have all the rights and powers to take or sell the real estate affected thereby, for the nonpayment of taxes, which it would have possessed had said city or town never been the holder of said tax title.
Chapter 60: Section 61A. Lands subject to tax titles held by municipalities; taking for nonpayment of taxes Section 61A. Anything contained in section sixty-one to the contrary notwithstanding, if a tax is a lien on land only part of which is subject to a tax title or tax titles held by the town or part of which is subject to a tax title held by the town and the remainder of which is subject to another tax title or tax titles held by the town, the tax shall not be certified as provided in section sixty-one; but the collector shall take the land for the nonpayment of the tax as if no part of such land were subject to a tax title held by the town, except that the notice prior to the taking and the instrument of taking shall, after describing the land, state:—“A portion or all of this land is subject to a tax title or tax titles held by the Town [or City] of ”. The tax title account set up for the tax title resulting from such a taking and the tax title account set up for the prior tax title or tax titles shall be cross-referenced by the treasurer; and no tax title the account for which is so cross-referenced shall be assigned by the town.
Chapter 60: Section 62. Land taken or sold for taxes; redemption Section 62. Any person having an interest in land taken or sold for nonpayment of taxes, including those assessed under sections twelve, thirteen and fourteen of chapter fifty-nine, or his heirs or assigns, at any time prior to the filing of a petition for foreclosure under section sixty-five, if the land has been taken or purchased by the town and has not been assigned, may redeem the same by paying or tendering to the treasurer the amount of the tax title account of the land being redeemed, and interest at sixteen per cent upon the original sum for which the land was taken or sold, from the date of sale, and upon each sum certified in accordance with section sixty-one, from the date of certification, together with all charges lawfully added to the tax title account of such land subsequently to such taking or sale, or may redeem the same by paying or tendering to said treasurer installments on account of the tax title account, each of which except the last, shall be in amount of not less than twenty-five per cent of the sum for which the land was originally sold, together with the full amount of interest, as aforesaid, to the date of payment of the amount of the tax title account or balance thereof remaining due at the time of such payment, and all charges lawfully added as aforesaid until the full amount of the tax title account, with interest as aforesaid and all such charges, is paid. Each such instalment shall be received, receipted for, and applied toward the redemption of the land so taken or purchased. The treasurer upon accepting any payment hereunder may extend the time during which proceedings for the foreclosure of all rights of redemption may not be instituted, for a period not exceeding one year beyond the time provided by section sixty-five; but not more than one such extension shall be granted. An extension granted hereunder shall be entered upon the tax title account, and a written statement thereof shall be given to the person who made the payment.
Any such person may so redeem by paying or tendering to a purchaser, other than the town, his legal representatives or assigns, or to the person to whom an assignment of a tax title has been made by the town, at any time prior to the filing of such petition for foreclosure, in the case of a purchaser the original sum and intervening taxes and costs paid by him and interest on the whole at said rate, or in the case of an assignee of a tax title from a town the amount stated in the instrument of assignment with additional interest on the principal amount at said rate from the date of said assignment. In each case he shall also pay or tender, for examination of title and a deed of release, not more than $3 in the aggregate, and in addition thereto the actual cost of recording the tax deed or evidence of taking and the instrument of assignment, if any. He may also redeem the land by paying or tendering to the treasurer the sum which he would be required to pay to the purchaser or to the assignee of a tax title, with $10 additional. When land is redeemed from a tax title held by a city or town, the city treasurer, or acting city treasurer, notwithstanding the provisions of the charter of his city, or the town treasurer, as the case may be, shall, in the name and on behalf of the city or town, execute, acknowledge and deliver an instrument, which need not be under seal, containing a reference to the record of the tax deed or instrument of taking sufficient to identify it and reciting that the city or town acknowledges satisfaction of the tax title account secured thereby. The instrument provided for herein shall specify the year for which, and the name of the person to whom, the tax for which the land was sold or taken was assessed, and shall also specify the land on which such tax was assessed. If a person other than the owner of the fee rightfully redeems, requesting that he be named in the instrument, the instrument shall include his name and, when duly recorded in the registry of deeds of the county or district where the land is situated, shall be notice to all persons of such payment. If the amount so paid for redemption is paid by a holder of a mortgage on the premises, the amount so paid may be added to the mortgage debt. Any person redeeming land from a tax title held by a city or town may, as a condition of redemption, be required by the city or town treasurer to pay to him the expense of recording the instrument of redemption; and, when such expense has been so paid, such treasurer shall be deemed to be authorized to record such instrument and shall forthwith cause the same to be filed for record in the proper registry of deeds. No person shall knowingly collect or attempt to collect for the redemption of any such land a sum of money greater than that authorized by this section.
If in the opinion of the treasurer, there has been a substantial or misleading error or irregularity in the amount of any item of water, sewer use or municipal light rates or charges, or interest thereon or costs relative thereto, included in a tax title account, or in connection with the proceedings with respect to any of them, he may accept in redemption the amount of the tax title account less the amount of such items, including interest thereon after their addition to any tax under applicable provisions of law. If in such case the tax title was held by the city or town, said treasurer shall make an entry in his books of the amount so deducted and of the reason for the deduction, which shall relieve him of further responsibility therefor. If the tax title was held by a person other than the city or town, the treasurer shall pay to such person the amount of the account without deduction and shall make a similar entry, which shall entitle him to credit for the excess so paid.
Nothing in this section nor in sections sixty-five to seventy-five, inclusive, shall be construed to prevent the title of a person or a city or town purchasing land at a sale under section seventy-nine or eighty from becoming absolute without any foreclosure proceedings under said sections sixty-five to seventy-five, inclusive.
Chapter 60: Section 62A. Municipalities; payment agreements Section 62A. Municipalities may by bylaw or ordinance authorize payment agreements between the treasurer and persons entitled to redeem parcels in tax title. Such agreements shall be for a maximum term of no more than 5 years or such lesser period as the ordinance or bylaw may specify and may waive not more than 50 per cent of the interest that has accrued on the amount of the tax title account, subject to such lower limit as the ordinance or bylaw may specify. An ordinance or bylaw under this section shall provide for such agreements and waivers uniformly for classes of tax titles defined in the ordinance or bylaw.
Any such agreement must require a minimum payment at the inception of the agreement of 25 per cent of the amount needed to redeem the parcel. During the term of the agreement the treasurer may not bring an action to foreclose the tax title unless payments are not made in accordance with the schedule set out in the agreement or timely payments are not made on other amounts due to the municipality that are a lien on the same parcel.
Chapter 60: Section 63. Payments to treasurer instead of purchaser; certificate of release Section 63. The treasurer shall receive money paid to him instead of the purchaser or assignee of a tax title, if the amount tendered equals the amount stated in the instrument of assignment or collector’s deed plus additional interest at the rate stated in section 62 from the date of sale or assignment to the date the treasurer receives such payment, and give to the person paying it a certificate specifying the amount paid, the name of the person to whom and the real estate on which the tax was originally assessed, and the registry of deeds and the book and page of the records therein where the collector’s deed or evidence of taking and the instrument of assignment, if any, is recorded; and the recording of the certificate in said registry shall extinguish all right and title acquired under the collector’s deed or evidence of taking. The treasurer shall forthwith pay over all money so paid, to the person entitled thereto as determined by him, except that he shall retain $10 for the use of the town and shall account to it therefor.
Chapter 60: Section 64. Absolute title after foreclosure Section 64. The title conveyed by a tax collector’s deed or by a taking of land for taxes shall be absolute after foreclosure of the right of redemption by decree of the land court as provided in this chapter. The land court shall have exclusive jurisdiction of the foreclosure of all rights of redemption from titles conveyed by a tax collector’s deed or a taking of land for taxes, in a proceeding provided for in sections sixty-five to seventy-five, inclusive.
Chapter 60: Section 65. Rights of redemption; petition for foreclosure; legal fees Section 65. Except as provided in section sixty-two, whoever then holds the title to land acquired by a sale or taking for taxes may bring a petition in the land court for the foreclosure of all rights of redemption of said land either after six months from the sale or taking, or in case of a city or town, at any time following the sale or taking if the buildings thereon have been found to be abandoned property pursuant to section eighty-one A, or there has been a certification pursuant to section 81B that the redemption amount as determined pursuant to section 62 exceeds the assessed value of the parcel; provided, however, a petition for the foreclosure of all rights of redemption may be filed at any time following the consent in writing of the record owner. Such petition shall be made in the form to be prescribed by said court and shall set forth a description of the land to which it applies, with its assessed valuation, the petitioner’s source of title, giving a reference to the place, book and page of record, and such other facts as may be necessary for the information of the court. Two or more parcels of land may be included in any petition brought by a town, whether under a taking or as purchaser of such title or titles, if such parcels are in the same record ownership at the time of bringing such petition. The land court in each petition filed by a city or town may, upon motion, order the payment of legal fees to a city or town, which amount shall be added to the tax title account of the land to which the right of redemption is being foreclosed; in no event shall the legal fees awarded exceed the actual costs incurred and the judge shall consider the taxpayer’s ability to pay said fees in any such fee award.
Chapter 60: Section 66. Title examinations; notice Section 66. Upon the filing of such a petition the court shall forthwith cause to be made by one of its official examiners an examination of the title sufficient only to determine the persons who may be interested in the same, and shall upon the filing of the examiner’s report notify all persons appearing to be interested, whether as equity owners, mortgagees, lienors, attaching creditors or otherwise, of the pendency of the petition, the notice to be sent to each by registered mail and return of receipt required, the addresses of respondents, so far as may be ascertained, being furnished by the petitioner. Such other and further notice by publication or otherwise shall be given as the court may at any time order. The notice, to be addressed “To all whom it may concern”, shall contain the name of the petitioner, the names of all known respondents, a description of the land and a statement of the nature of the petition, shall fix the time within which appearance may be entered and answer filed, and shall contain a statement that unless the party notified shall appear and answer within the time fixed a default will be recorded, the petition taken as confessed, and the right of redemption forever barred.
Chapter 60: Section 67. Default Section 67. After the return day fixed, to be at least twenty days after the time of the actual issuance of notice, the court shall, if satisfied that the notice has been properly given, on motion of the petitioner enter an order defaulting all persons failing to appear and answer, and decreeing that the petition as to them be taken as confessed.
Chapter 60: Section 68. Answer; offer of redemption; hearing Section 68. Any person claiming an interest, on or before the return day or within such further time as may on motion be allowed by the court, shall, if he desires to redeem, file an answer setting forth his right in the land, and an offer to redeem upon such terms as may be fixed by the court. Thereupon the court shall hear the parties, and may in any case in its discretion make a finding allowing the party to redeem, within a time fixed by the court, upon payment to the petitioner of an amount sufficient to cover the original sum, costs, interest at the time rate of sixteen per cent per annum and all subsequent taxes, cost and interest to which the petitioner may be entitled under sections sixty-one and sixty-two, together with the costs of the proceeding and such counsel fee as the court deems reasonable. The court may impose such other terms as justice and the circumstances warrant.
If the land has been divided by sale, mortgage, upon a petition for partition or otherwise and such division has been duly recorded in the registry of deeds, the court may permit redemption of any of the portions into which the land has been divided, upon such terms as it may deem just and equitable toward all parties and may make a decree under section sixty-nine barring redemption of the remaining portions.
Chapter 60: Section 69. Decree barring redemption; vacating decree; petition Section 69. If a default is entered under section sixty-seven, or if redemption is not made within the time and upon the terms fixed by the court under the preceding section, or if at the time fixed for the hearing the person claiming the right to redeem does not appear to urge his claim, or if upon hearing the court determines that the facts shown do not entitle him to redeem, a decree shall be entered which shall forever bar all rights of redemption. If no innocent purchaser for value has acquired an interest, such decree may be vacated in the discretion of the court upon petition filed by the petitioner at any time.
Chapter 60: Section 69A. Decree barring redemption; time for vacating decree entered by person other than petitioner Section 69A. No petition to vacate a decree of foreclosure entered under section sixty-nine and no proceeding at law or in equity for reversing or modifying such a decree shall be commenced by any person other than the petitioner except within one year after the final entry of the decree if the decree is entered on or after September first, nineteen hundred and forty-five or within one year after said date if the decree was entered prior to said date. If said foreclosure petition was filed for an unoccupied or abandoned building as set forth in sections one and eighty-one A, or there has been a certification pursuant to section 81B that the redemption amount as determined pursuant to section 62 exceeds the assessed value of the parcel, no petition to vacate a decree of foreclosure entered under section sixty-nine and no proceedings at law or equity for reversing or modifying such a decree shall be commenced by any person other than the petitioner except within ninety calendar days after the final entry of the decree, or within one year of the final entry of the decree, if the decree was entered prior to the effective date of this section. For any decree relating to a property which stands in the name of a deceased person or person under guardianship or conservatorship, a petition may be maintained for reversal or modification of such decree up to one year from the date of decree.
Chapter 60: Section 7. Cash books Section 7. He shall also keep a cash book, in which he shall enter all sums paid to him, as received, specifying the total amount of tax, abatements allowed, all interest charged, the total amount received and the date of receipt, the date and amount of every payment and disbursement made by him, and to whom paid, with such other matters as the town requires.
Chapter 60: Section 70. Validity of title; questioning; decree of court Section 70. If a person claiming an interest desires to raise any question concerning the validity of such a title, he shall do so by answer filed in the proceeding on or before the return day, or within such further time as may on motion be allowed by the court, or else be forever barred from contesting or raising the question in any other proceeding. He shall also file specifications setting forth the matters upon which he relies to defeat the title; and unless such specifications are so filed, all questions of the validity or invalidity of the title, whether in form of deed or proceedings relating to the sale or taking, shall be deemed to have been waived. Upon the filing of the specifications the court shall hear the parties, and shall enter a decree in conformity with the law on the facts found.
Chapter 60: Section 71. Jury trials; waiver; framing issues Section 71. Any party may claim a jury trial on or before the return day, or within such further time as may on motion be allowed by the court, but unless so claimed the right to jury trial shall be deemed to be waived. Upon such a claim issues shall be framed therefor in accordance with the practice in the land court.
Chapter 60: Section 72. Questions of law reported Section 72. Questions of law may be reported by the court or taken to the supreme judicial court for revision by any party aggrieved, in the same manner as in other proceedings in the land court.
Chapter 60: Section 73. Costs and fees; deposit by petitioner Section 73. The petitioner, at the time of filing his petition, shall deposit with the recorder a sum sufficient to cover the costs of the proceedings as estimated by the court, and the fees chargeable by the court as the case proceeds shall be computed in accordance with section thirty-nine of chapter two hundred and sixty-two, so far as applicable, except that the charge for examination of title shall be the actual amount allowed the title examiner by the court. The money paid into court as aforesaid by the petitioner shall be disbursed directly by the recorder for necessary expenses incurred, and the balance of fees chargeable in each finished case shall be paid over quarterly to the commonwealth.
Chapter 60: Section 74. Repealed, 1973, 515, Sec. 1 Chapter 60: Section 75. Practice and procedure Section 75. Practice and procedure under sections sixty-four to seventy-three, inclusive, sections seventy-six, seventy-six A, and eighty B, not therein otherwise provided for, shall conform as nearly as possible to the land court practice, rules, regulations and procedure under chapter one hundred and eighty-five insofar as the same may be applicable, except that no memorandum stating the disposition of the case shall be made. Notice of filing the petition shall be recorded in the registry of deeds as provided for in land registration proceedings, and all final decrees shall be recorded.
Chapter 60: Section 76. Jurisdiction of land court; petition for redemption Section 76. In addition to its jurisdiction to allow a party to redeem under section sixty-eight, the land court shall have jurisdiction as to redemption in all cases of taking or sale of land for non-payment of taxes if relief is sought before the filing of a petition under section sixty-five for foreclosure of the right of redemption, and may grant such right of redemption or other relief as justice may require, fixing the terms therefor, or may refuse the same.
Chapter 60: Section 76A. Partial redemption; divided lands Section 76A. If real estate has been divided by sale, mortgage, upon a petition for partition or otherwise and such division has been duly recorded in the registry of deeds, and such real estate has been taken or sold for failure to pay a tax assessed on it as a whole, the land court, upon petition by the owner or mortgagee of any portion thereof, may, after notice to all other persons interested in any portion of such real estate, permit the petitioner to redeem the portion in which he is interested, in the manner provided by section seventy-six, upon such terms as it may deem just and equitable both toward the petitioner and toward such other persons.
If the plat of a proposed subdivision of land taken or sold for failure to pay a tax assessed on it as a whole, in any city or town having a planning board established under section eighty-one A of chapter forty-one, or in any other city or town which has a board of survey and has accepted the subdivision control law, has been approved by such planning board or board of survey and such approval has been filed in the office of such planning board or board of survey, or if, in any other city or town, the plan of a proposed subdivision of land so taken or sold has been duly recorded in the registry of deeds, the land court, upon petition by the owner or mortgagee of the whole of the land or any portion thereof for redemption of any subdivision thereof, may, after notice to all other persons interested in such land, permit the petitioner to redeem such subdivision, in the manner provided by section seventy-six, upon such terms as it may deem just and equitable both toward the petitioner and toward such other persons, provided it finds that such redemption will not adversely affect the interests of the city or town in which such land is situated. Such redemption may be permitted whether the approval of the plat or the recording of the plan was before or after said tax taking or sale.
Chapter 60: Section 76B. Errors or irregularities in water, sewer use or municipal light rates and charges Section 76B. Errors or irregularities in respect to water, sewer use or municipal light rates and charges included in a tax title account, including interest and costs, or in the proceedings relating thereto, shall not render invalid a tax title otherwise valid; but in proceedings under sections sixty-four to seventy-six A, inclusive, such errors or irregularities shall be taken into consideration in fixing the terms of redemption, whether upon petition for foreclosure or for redemption, and the court shall specifically indicate in any decree fixing the terms of redemption any amounts excluded from the account by reason of such errors or irregularities. The city or town in which the land lies shall pay to a person holding such a tax title the amounts so indicated, with interest at the rate of six per cent per annum from the date of redemption and, if the city or town fails to make such payment within three months after written demand therefor made upon the city or town treasurer, such person may recover the same in an action of contract brought against the city or town within one year after the date of redemption. The city or town treasurer shall notify the board or officer in charge of the water, sewer or municipal light department of the amount so excluded by court decree.
Chapter 60: Section 76C. Tax titles held by towns; notice of assignments, redemptions or foreclosures Section 76C. Whenever a tax title held by a town shall be assigned, or the land subject to a tax title so held shall be redeemed or the right of redemption thereunder foreclosed, the treasurer shall forthwith send written notice of the assignment, redemption or foreclosure, as the case may be, to the collector and, upon their request, to the assessors.
Chapter 60: Section 77. Foreclosure by municipalities; tax titles; covenants calling for money payments by owners Section 77. After foreclosure by a town of the rights of redemption under a tax title or taking, as hereinbefore provided, the land shall thereafter be held and disposed of like any land belonging to it and held for municipal purposes, and shall not while so held be assessed for taxes.
Before foreclosure so much of the provisions of any covenant or agreement running with the land as calls for the payment of money by the owner thereof shall not be enforceable against a town which is the owner of record of such land under a tax title or taking, except as hereinafter provided. After foreclosure the town while it is the owner of record of such land may apply to the commissioner for an extension of the time during which such provisions shall not be enforceable against it. The commissioner shall have the power in his discretion to grant such an extension for a period not exceeding one year from the date of the foreclosure, and thereafter, from time to time, upon similar applications, may in his discretion grant similar additional extensions. Any such extension shall be in writing, may be recorded in the appropriate registry of deeds, and if so recorded within thirty days from its date, shall be conclusive in favor of the town. In no event, however, shall such provisions calling for the payment of money be so suspended and inoperative during any period in which such town directly or indirectly in any capacity accepts or receives the benefit of such covenant or agreement or of any right or privilege created or affected thereby.
Chapter 60: Section 77A. Sale by municipalities; land acquired through foreclosure; recording deeds Section 77A. In case of the sale of land acquired by a city or town through foreclosure under any provision of this chapter, the purchaser shall be required as a condition of the sale to authorize the official or officials executing the deed on behalf of the city or town to record the same, and the expense of such recording shall be paid by such purchaser. Such official or officials shall cause such deed to be recorded in the proper registry of deeds within fifteen days after the execution thereof.
Chapter 60: Section 77B. Management, sale, or lease by municipalities; land acquired through foreclosure or under Sec. 80; notice Section 77B. The mayor of any city or the selectmen of any town which holds property acquired by foreclosure of tax titles or acquired under section eighty may appoint a custodian who shall have the care, custody, management and control of all property heretofore or hereafter so acquired by said city or town. The custodian shall serve during the pleasure of the mayor or selectmen and shall receive as his compensation, if any, a sum fixed by the mayor or by the selectmen.
The custodian, acting on behalf of the city or town, may, notwithstanding any provision of law, ordinance or by-law inconsistent herewith, sell at public auction any such property, first sending a notice thereof as herein provided to the owner of record immediately prior to the acquisition by the city or town of the title to such property. Such notice shall contain a description of the property to be sold sufficient to identify it, shall state the date, time and place appointed for the sale thereof and the terms and conditions of such sale, and shall be sent by registered mail to the address of such owner as appearing upon the records of the assessors of the city or town, at least fourteen days before such sale. The custodian shall also, not less than fourteen days before such appointed date, post a similar notice in two or more convenient and public places in the city or town. Failure to send or to post a notice as herein provided, or any insufficiency in the notice sent or posted, shall not invalidate the title to any property sold hereunder. The custodian may reject any and all bids at such sale or any adjournment thereof if in his opinion no bid is made which approximates the fair value of the property, and he may adjourn the sale from time to time for such periods as he deems expedient, giving notice thereof at the time and place appointed for the sale or for any adjournment thereof. After any such sale and upon payment by the purchaser to the city or town of the amount of a bid accepted by the custodian, the treasurer of said city or town shall, on its behalf, execute and deliver any instrument necessary to transfer the title of the city or town to any such property sold under this section. This section shall not be construed to prevent a city or town from disposing of such property under section three of chapter forty, or in any other manner authorized by law.
Any officer or board which executes a deed to convey property acquired by a city or town by foreclosure of a tax title or under section eighty, shall not execute such deed to any person unless such person has submitted to said board or officer a statement signed under the pains and penalties of perjury that neither he nor any person who would gain equity in the property as a result of such conveyance has ever been convicted of a crime involving the willful and malicious setting of a fire or of a crime involving the aiding, counseling or procuring of a willful and malicious setting of a fire, or of a crime involving the fraudulent filing of a claim for fire insurance; or is delinquent in the payment of real estate taxes to the city or town in which the property is being sold, or if delinquent, that a pending application for abatement of such tax, or a pending petition before the appellate tax board or the county commissioners has been filed in good faith. If there is more than one grantee of such deed, each grantee must file such statement, and no such deed shall be valid unless it contains a recitation that the board or officer granting the deed has received such statement.
If the custodian is of the opinion that a sale of any such property is not immediately practicable, the custodian, acting on behalf of the city or town, may, subject to the approval of the mayor or the selectmen, notwithstanding any provision of law, ordinance or by-law inconsistent herewith, lease such property for a term not exceeding three years, and may on behalf of the city or town execute and deliver such lease.
The custodian, subject to appropriation, may employ one or more assistants as may be necessary for the proper performance of his duties. Such assistants shall receive as compensation such amounts as may be approved by the mayor or by the selectmen.
Chapter 60: Section 77C. Deeds accepted by municipalities in lieu of foreclosure; taxes Section 77C. Cities and towns, acting through their legislative bodies, may accept a deed, in which all persons who have an interest in title join as grantors, in lieu of foreclosure to any parcel of land within the city or town which meet the requirements set forth in this section. Upon acceptance and recording of that deed, any real estate taxes and other municipal charges and liens shall be treated as having been paid, and shall be accounted for by the city or town in the same manner as if a tax title foreclosure had been completed. The procedure provided for in this section shall apply only to property upon which there are no other liens or encumbrances other than the liens of the city or town. No grantor under this section may purchase or otherwise acquire from the city or town any parcel of land acquired by the city or town under this section.
Chapter 60: Section 78. Repealed, 1936, 194 Chapter 60: Section 79. Sale without foreclosure; inquiries Section 79. After ninety days from the taking or purchase by a town of any parcels of land for non-payment of taxes, the commissioner may, and on written application of the town treasurer shall, inquire into the value of such parcels and the validity of tax titles held thereon. As a part of such inquiry the commissioner shall, upon written request therefor by any person in interest, hear such person relative to any matter pertaining to such inquiry. If the commissioner is of the opinion that such parcels are of insufficient value to meet the taxes, interest and charges including the payment of fifty dollars to a city or town as the legal fee for proceedings under this section, and all subsequent taxes and assessments thereon, together with the expenses of a foreclosure under section sixty-nine, including the payment of fifty dollars to a city or town as the legal fee for proceedings under this section, that none of such parcels exceeds $15,000 in value, and that the facts essential to the validity of the tax titles on such lands have been adequately established, he shall make affidavit of such finding, which shall be recorded in the registry of deeds for the district wherein the land lies. The dollar value of such parcels specified in the previous sentence shall be increased every January 1 by the percentage increase of the Consumer Price Index for Urban Consumers prepared by the Bureau of Labor Statistics of the United States Department of Labor for the previous calendar year.
The commissioner may require the treasurer to include in his application a statement under the penalties of perjury setting forth such information appearing in the records of the assessors and of the collector and tending to establish the validity of the tax titles on such parcels of land as the commissioner deems meet. The statement so made, or such portion thereof as the commissioner finds pertinent, may be incorporated in his affidavit and, when recorded, shall be prima facie evidence of such facts.
Upon the recording of the affidavit the treasurer may sell all the parcels included therein, severally or together, at public auction to the highest bidder, first giving notice of the time and place of sale by publication fourteen days at least before the sale in a newspaper published in the town, if any, otherwise in the county and by posting a notice of the sale in some convenient and public place in the town fourteen days at least before the sale; provided, that the treasurer at such auction may reject any bid which he deems inadequate. If the sale under this section shall not be made within four years from said taking or purchase, it shall be made by the treasurer for the time being when he deems best, or at once upon service on him of a written demand by any person interested therein. The treasurer shall execute and deliver to the highest bidder whose bid has not been rejected as inadequate a deed without covenant except that the sale has in all particulars been conducted according to law. The purchaser shall be required as a condition of the sale to authorize the treasurer executing the deed on behalf of the city or town to record the same, and the expense of such recording shall be paid by such purchaser. The treasurer shall cause such deed to be recorded in the proper registry of deeds within fifteen days after the execution thereof. Title taken pursuant to a sale under this section shall be absolute upon the recording of such deed of the treasurer.
If the amount received from the sale is more than the taxes, interest and charges including the payment of fifty dollars to a city or town as the legal fee for proceedings under this section, and subsequent taxes and assessments, on all lands included in the sale, together with the expenses thereof, the balance shall be deposited with the town treasurer to be paid to the person entitled thereto if demanded within five years, otherwise it shall enure to the town. If such surplus results from the sale of several parcels for a lump sum, it shall be held as aforesaid for the several owners in proportion to the prices at which the several parcels were originally taken or purchased by the town.
The treasurer shall include the payment of fifty dollars to a city or town as the legal fee for proceedings under this section and said amount shall be added to the tax title account of the land being sold at public auction and shall be included in the amount due for redemption if redemption is made prior to said sale.
Chapter 60: Section 8. Collector’s books as municipal property; open to examination Section 8. All books kept by the collector, which shall be approved as to form by the commissioner, shall be furnished by, and be the property of, the town, and shall be at all reasonable times open to examination by the auditor of such town or any other agent thereof duly authorized therefor. The collector shall, on demand by the mayor, aldermen or selectmen, exhibit to them or to any persons whom they designate, at any time during ordinary business hours, the books, accounts and vouchers relating to taxes committed to him for collection and to his receipts and payments on account of taxes; and they, or the persons designated by them, shall have full opportunity to examine said books, accounts and vouchers, and to make copies and extracts therefrom.
Chapter 60: Section 80. Lack of or inadequate bids; sales without foreclosure Section 80. If no person bids at such a sale or if no bid deemed adequate by the treasurer is made thereat and if the sale has been adjourned one or more times, the treasurer shall then and there make public declaration of the fact, and if no bid or no bid deemed adequate as aforesaid is then made he shall give public notice that he purchases for the town by which the tax is assessed; or if the person to whom the land is sold does not within ten days pay to the treasurer the sum bid by him the sale shall be void and the town shall be deemed to be the purchaser of the land. If the town becomes the purchaser hereunder, the treasurer shall execute to it a deed which shall set forth the fact that no bid or no bid deemed adequate as aforesaid was made at the sale or that the purchaser failed to pay the amount bid, as the case may be. Such deed shall not be valid unless recorded within sixty days after the sale under this section; and the title of the town to land conveyed thereby shall be absolute upon the recording of said deed in the proper registry of deeds within such sixty days.
Chapter 60: Section 80A. Title to land conveyed under Sec. 79 or Sec. 80; questioning barred Section 80A. Any person, having a right of redemption or any other interest in the land conveyed or purporting to be conveyed under section seventy-nine or section eighty, upon whom service of the notice of sale provided in said section seventy-nine has been made by registered mail, who, prior to the sale, neither redeems the land nor brings proceedings to enjoin the sale, shall, upon the recording of the deed as required by said section seventy-nine or said section eighty, be forever barred from raising any question concerning the validity of the title conveyed thereby, and a statement contained in the treasurer’s deed that such service has been made, naming the persons who were served by registered mail, shall be prima facie evidence thereof.
Chapter 60: Section 80B. Title acquired under Sec. 79 or Sec. 80; petition to establish; procedure Section 80B. The holder of a title acquired under section seventy-nine or eighty, whether acquired before or after the effective date of this section, may file in the land court a petition to establish such title by requiring all persons who would have an interest in the land involved except for either the petitioner’s title or his chain of title originating under section seventy-nine or eighty to show cause why they should not bring an action to try any claim or claims which they may have adverse to the petitioner’s title arising out of the tax proceedings upon which such title was based. The petition shall set forth on oath the petitioner’s source of title, giving a reference to the place, book and page of record of the deed under section seventy-nine or eighty upon which the petitioner relies, the description of the land involved which appeared in the tax deed or instrument of taking upon which such deed under section seventy-nine or eighty was based, the names of all such persons known to the petitioner and such other facts as may be necessary for the information of the court; but the petitioner need not allege in such petition nor show during the hearing thereof any error or irregularity in the tax proceedings upon which such title depends or any other defect in such title. The petition shall be in the alternative praying that such persons be ordered to show cause why they should not bring action to try such claim or claims or, if such persons do not appear within the time fixed or, having appeared, disobey the lawful order of the court to try their claim or claims, that the court enter a decree that they be forever barred from having or enforcing any such claim or claims adversely to the petitioner, his heirs or assigns, in the land described.
If any such persons are unascertained, not in being, unknown or out of the commonwealth, or cannot be actually given notice and made personally amenable to the decree of the court, they may be made respondents and, if they are unascertained, not in being or unknown, may be described generally, as the heirs or legal representatives of AB, or such persons as shall become heirs, devisees or appointees of CD, a living person, or persons claiming under AB.
Upon the filing of the petition, the court shall notify all such persons of the pendency of the petition, the notice to be sent to each by registered mail and the return of receipt to be required, the addresses of such persons, so far as may be ascertained, being furnished by the petitioner. Such other and further notice by publication or otherwise shall be given as the court may at any time order. The notice, to be addressed “To all whom it may concern”, shall contain the name of the petitioner, the names of all respondents named in the petition, the description of the land, and a statement of the nature of the petition, shall fix the time within which appearance may be entered and shall contain a statement that unless the persons notified shall appear within the time fixed that they shall be forever barred from having or enforcing any such claim or claims adversely to the petitioner, his heirs or assigns, in the land described.
If, after notice has been given and the time limited in such notice for the appearance of the respondents has expired, the court finds that there are or may be respondents not actually given notice who have not appeared, or who are minors, or persons under disability, or unascertained, unknown or out of the commonwealth, it may of its own motion, or on the representation of any party, appoint a disinterested person to act as guardian ad litem for any such respondents. The compensation of the guardian ad litem shall be determined by the court and paid by the petitioner.
After all the respondents have been given notice as hereinbefore provided and after the appointment of a guardian ad litem, if such appointment has been made, the court may proceed as though all respondents had been actually notified. Such petition shall be a proceeding in rem against the land, and any decree entered as hereinafter provided shall operate directly on the land and have the force of a release made by or on behalf of all respondents of all claims adverse to the petitioner’s title.
The persons so notified shall by answer show why they should not be required to bring an action to try such claim or claims, and the court shall enter an appropriate decree relative to bringing and prosecuting such action. If the persons so notified do not appear within the time fixed or, having appeared, disobey the lawful order of the court to try their claim or claims, the court shall enter a decree that they be forever barred from having or enforcing any such claim or claims adversely to the petitioner, his heirs or assigns, in the land described; provided, that such decree shall not be entered unless the petitioner has proved to the court that the collector’s deed or the instrument of taking, as the case may be, upon which the petitioner’s title depends, was duly recorded within the time provided therefor by law. No petition to vacate such decree and no proceeding at law or in equity for reversing or modifying such a decree shall be commenced by any person except within one year after the final entry of the decree if the decree is entered on or after September first, nineteen hundred and forty-six, or within one year after said date if the decree was entered prior to said date.
If, as the result of a petition filed under this section, the petitioner’s title is adjudged invalid by a court of competent jurisdiction because of errors or irregularities in the tax proceedings upon which it was based, the clerk, upon request, shall issue a certificate to that effect. The treasurer of the city or town where the land affected by such title is situated, upon receipt of a release by the holder of said title of all interest which he may have under it, together with such certificate, shall refund to such holder the amount paid therefor but not exceeding the amount received by the city or town.
Chapter 60: Section 80C. Title to land conveyed under Sec. 79 or Sec. 80; curing defects Section 80C. When any city or town has conveyed or sold any land under section seventy-nine or section eighty by an instrument in writing conveying or purporting to convey such land, and said instrument is duly recorded in the registry of deeds for the district wherein such land is situated and a period of twenty years elapses after the instrument is accepted for record, and the notice or procedure for the taking and sale or conveyance under this chapter or the instrument or record thereof because of a defect, irregularity, or omission, fails to comply in any respect with any requirement of law relating thereto or the instrument or record thereof shall, notwithstanding such defects, irregularities, or omissions be effective for all purposes to the same extent as though such notice or procedure or the instrument or record thereof had originally not been subject to any such defects, irregularities, or omissions, unless within said period of twenty years a proceeding is commenced on account of such defect, irregularity, or omission and notice thereof is duly recorded in said registry of deeds and indexed and noted on the margin of said instrument of conveyance and in the event of such proceeding, unless relief is thereby in due course granted.
Chapter 60: Section 81. Repealed, 1925, 241, Sec. 8 Chapter 60: Section 81A. Land with unoccupied buildings; inspection; abandonment; foreclosure of rights of redemption Section 81A. Whenever a city or town shall have purchased or taken land for non-payment of taxes under section forty-three or fifty-three, respectively, and the treasurer of said city or town has reason to believe that the buildings located thereon are unoccupied, he shall forthwith request the inspector of buildings, or such other person designated by the mayor or board of selectmen to perform the duties of the inspector of buildings as defined in section six of chapter one hundred and forty-three, to inspect the buildings. Said inspection may be in addition to and need not be in conjunction with the inspection as performed by the inspector of buildings pursuant to said section six, and shall not preclude a city or town from taking any action prescribed in said chapter one hundred and forty-three, relative to said land.
If the inspector of buildings determines that said buildings are abandoned property he shall notify the record owner, and, if appropriate, the mortgagee in possession or lessee, of his finding. Such notice shall include a statement that the inspection was conducted at the request of the local treasurer and that the failure of the record owner, or other interested party, to correct the conditions described in the notice within thirty days of receipt or publication of the notice will result in proceedings to foreclose the record owner’s right of redemption. Such notice may be served in the manner required by law for the service of subpoenas on witnesses in civil cases or may be published. The inspector of buildings shall also, at the time of service or publication, post a copy of the notice in two or more convenient public places.
If at the expiration of the thirty-day period, the inspector of buildings is of the opinion that action has not been initiated to correct the conditions described in the notice, he shall forthwith notify the local treasurer in writing, under penalties of perjury, that the buildings on the land have been found to be abandoned property. Such written notice shall include therein the facts and circumstances which formed the basis of his findings, and a copy of the notice served on the record owner, or if service was by publication, an account of the steps taken to locate the record owner and a copy of the published notice.
Upon receipt of such written notice the treasurer shall immediately notify the commissioner in writing, under the penalties of perjury, of such finding. Said notice to the commissioner shall include a copy of the notice filed by the inspector of buildings, such information appearing in the records of the assessors and of the collector and tending to establish the validity of the tax title on such land, and any further information that the commissioner may deem appropriate.
If the commissioner is of the opinion that the facts and circumstances as found by the inspector of buildings are sufficient to establish that the buildings on the land so taken or purchased are abandoned property and that the facts essential to the validity of the tax title on such land have been adequately established, he shall make an affidavit of such finding which shall be recorded in the registry of deeds for the district wherein the land lies.
The commissioner shall incorporate in his affidavit the statements of the inspector of buildings and the treasurer, or such portions thereof as the commissioner finds pertinent, and when recorded, shall be prima facie evidence of such facts.
Upon the recording of the affidavit the treasurer shall bring a petition in the land court pursuant to section sixty-five for the foreclosure of all rights of redemptions of said land.
Chapter 60: Section 81B. Purchase of land or taking of land for nonpayment of taxes under Sec. 43 or Sec. 53; redemption amount exceeds assessed value; foreclosure of rights of redemptions Section 81B. Whenever a city or town shall have purchased or taken land for nonpayment of taxes under section 43 or 53, and the treasurer of the city or town certifies that the redemption amount as determined pursuant to section 62 exceeds the assessed value of the parcel, the treasurer shall make an affidavit of such certification which shall be recorded in the registry of deeds for the district wherein the land lies. Upon the recording of the affidavit, the treasurer shall bring a petition in the land court pursuant to section 65 for the foreclosure of all rights of redemptions of the land.
Chapter 60: Section 82. Notice to holder of invalid tax title; release of interest Section 82. If a collector has reasonable cause to believe that the title to land sold for non-payment of taxes or of assessments, a lien for which is enforceable by a sale of land, is invalid by reason of an error, omission or informality in the assessment or sale, he may, within two years after the date of the deed of such land, give notice to the record holder of the tax title, requiring him, within thirty days thereafter, to release any interest which he may have in such land under said deed, and to receive from the town the amount paid therefor with interest at ten per cent or to file with the collector a written statement that he refuses to release such interest. Such statement, if recorded in the registry of deeds, shall release the town from any liability upon the warranty in said deed.
Chapter 60: Section 83. Failure to release interest; recording affidavit of notice by collector Section 83. If, within thirty days after such notice, such holder of the tax title does not comply therewith, the collector shall cause a copy thereof, with an affidavit by himself or by a disinterested person of the service thereof and of the facts in the case, to be recorded in the registry of deeds. A note of reference to the record of said copy shall be made on the margin of the record of the collector’s deed therein referred to; and from the time of such record the interest payable by reason of a breach of warranty in such deed shall cease, and all right and title acquired under such deed shall be held to be released. The collector shall give notice of such proceedings to the town treasurer, who shall, on reasonable demand, pay over out of any funds in his hands the amount due in respect of said deed to the person entitled thereto.
Chapter 60: Section 84. Reassessment or collection of taxes where title invalid; disclaimer by municipality of title Section 84. If the collector has reasonable cause to believe that a tax title, held by a town under a sale or taking for non-payment of a tax, is invalid by reason of any error, omission or informality in the assessment, sale or taking, he may disclaim and release such title by an instrument under his hand and seal, duly recorded in the registry of deeds. If the invalidity of a tax title so disclaimed and released or of a tax title released under section eighty-two or eighty-three was caused by an error, omission or informality in the assessment, the collector shall, upon the recording of such disclaimer and release or after obtaining from the holder of the deed a release of his interest or after causing a copy of the notice to be filed and recorded as provided in section eighty-three, forthwith notify the board by which the tax or assessment was laid, which shall forthwith reassess it as provided in section seventy-seven of chapter fifty-nine. If such invalidity was caused by an error, omission or informality in the proceedings of the collector, he shall, after the recording of such disclaimer and release, or after obtaining such release or after filing or recording such copy, forthwith collect the unpaid tax or assessment in conformity to law.
Chapter 60: Section 84A. Certificates of invalidity; refunds to tax holders Section 84A. If a tax title is for any reason adjudged invalid by a court of competent jurisdiction, the clerk, upon request, shall issue a certificate to that effect. The treasurer of the city or town where the land affected by such a tax title is situated, upon receipt of a release by the holder of said title of all the interest which he may have under his tax deed, together with such a certificate, shall refund to such holder the amount paid therefor but not exceeding the amount received by the city or town, with interest at the rate of six per cent per annum for a period of not exceeding two years from the date of the tax deed. The treasurer shall forthwith record said release in the proper registry of deeds, and thereupon, if the said invalidity was caused by an error, omission or informality in the assessment of the tax, the treasurer shall notify the board by which the tax or assessment was laid, which shall forthwith reassess it as provided in section seventy-seven of chapter fifty-nine; and if such invalidity was caused by an error, omission or informality in the proceedings of the collector, the treasurer shall thereupon notify the collector who shall forthwith collect the unpaid tax or assessment in conformity to law.
Chapter 60: Section 85. Taxes paid by co-tenants; lien on co-tenants’ interest Section 85. A tenant in common or joint tenant, who pays the entire tax assessed upon land held jointly or in common, shall have a lien upon the interest of each of his co-tenants, to secure the payment to him of the proportion of such tax payable by each of said co-tenants respectively, with the costs of enforcing the same; but any person whose tax has been so paid by his co-tenant shall have the same right to recover it back if illegally assessed as he would have had if the tax had been paid under a protest by him in writing.
Chapter 60: Section 86. Enforcement of lien of co-tenant Section 86. Such lien may be enforced in the manner provided in chapter two hundred and fifty-four for enforcing liens on buildings and land under written contracts for the erection, alteration, repair or removal of buildings or structures; but shall be dissolved, unless the person desiring to avail himself thereof, or some one in his behalf, subscribes and makes oath to a certificate setting forth a description, sufficiently accurate for identification, of the property intended to be covered by the lien, the names of the several co-tenants and the interest of each therein, the amount of the tax paid, and the amount due from each co-tenant, and within thirty days after the day of payment of said tax records such certificate in the registry of deeds, and unless a bill in equity to enforce the lien is commenced within sixty days after the date of recording said certificate. Such lien shall have priority over all liens and encumbrances arising after the filing of the certificate required by this section, but shall not be valid against a mortgage actually existing and duly recorded prior to the recording of said certificate, or against any lien existing under section one or section three of chapter two hundred and fifty-four prior to the filing of the certificate. No person except the co-tenant who paid the tax, or a person claiming by, through or under him, shall be made a party plaintiff in a bill brought under this section.
Chapter 60: Section 87. Directions to collectors; ordinances or by-laws Section 87. A city or town may, by ordinance or by-law, respectively, direct whether its collector shall exercise the power of sale or the power of taking to enforce the lien for taxes; and in default of such ordinance or by-law the collector may exercise either power at his discretion; but the passage of any such ordinance or by-law shall not render invalid any proceedings then pending.
Chapter 60: Section 88. Tax lists and warrants; posting by sheriff or deputies Section 88. When the tax list and warrant of the assessors is committed to the sheriff or his deputy, he shall forthwith post, in some public place in the town, an attested copy of said list and warrant; and shall make no distress for a tax within thirty days thereafter.
Chapter 60: Section 89. Fees of sheriff for collecting taxes Section 89. If a person pays his tax within said thirty days, the officer shall receive from him for his fees five per cent on the sum assessed; but if a tax remains unpaid after said thirty days, he shall collect it by distress or imprisonment, or by sale of land as a collector would do. The officer may also levy his fees for service and travel in the collection of each person’s tax, as in other cases of distress and commitment, or sale of land.
Chapter 60: Section 9. Repealed, 1976, 451 Chapter 60: Section 90. Treasurer as collector; warrants Section 90. If a city or town appoints its treasurer as collector of taxes, he may issue his warrants to collect to a deputy collector, returnable in sixty days, requiring him to collect any and all taxes due. Such warrants shall be substantially in the same form and shall confer the same powers as warrants by assessors to collectors.
Chapter 60: Section 91. Foreign corporation; non-resident; failure to pay taxes; restraint on business Section 91. When any foreign corporation or non-resident person, doing business in the commonwealth, shall for sixty days neglect, refuse or omit to pay a tax lawfully assessed and payable, any court having jurisdiction in equity may on petition of the collector of taxes of the town where the tax is assessed restrain said corporation or person from doing business in the commonwealth until said tax, with all incidental costs and charges, shall have been paid. Service of process upon any such petition may be made by an officer duly qualified to serve process, by leaving a duly attested copy thereof at the place where the business is carried on.
Chapter 60: Section 92. Deputy collectors; appointment and removal; bookkeeping; reports; deposit and transfer of funds Section 92. Any officer authorized to collect taxes may appoint and remove such deputies as such officer deems expedient. Each deputy so appointed shall keep a cash book, in which such deputy shall enter all sums so collected, specifying the total amount of each tax collected, all interest, charges and fees received, the name and address of each party from whom money was received and the date of each such receipt. They shall prepare a report to the collector of all uncollected warrants issued to the deputy at least once a month. Such deputies shall give bond for the faithful performance of their duties, in such sum and in such form, and subject to such conditions, as the commissioner may prescribe, and shall have all the powers of collectors. Any such deputy shall, at least weekly, either turn over sums collected to the collector, or deposit said funds into an account which is separate from any other account of that community, or any other community, for the purpose of clearing checks and earning interest on deposits. The deputy shall have no authority to withdraw amounts from this deputy deposit account except the deputy’s fees due under section fifteen. The collector shall transfer funds which have cleared from such account to the town treasury at least once a week along with any interest earned and may retain any fees of the collector and deputy and pay over such fees to the collector or deputy, unless such fees belong to the municipality.
Chapter 60: Section 93. Money due taxpayer from municipalities; withholding for delinquent taxes Section 93. The treasurer or other disbursing officer of any town may, and if so requested by the collector shall, withhold payment of any money payable to any person from whom there are then due taxes, assessments, rates or other charges committed to such collector, which are wholly or partly unpaid, whether or not secured by a tax title held by the town, to an amount not exceeding the total of the unpaid taxes, assessments, rates and other charges, with interest and costs. The sum withheld shall be paid or credited to the collector, who shall, if required, give a written receipt therefor. The person taxed or charged may in such case have the same remedy as if he had paid such taxes, assessments, rates or other charges after a levy upon his goods. The collector’s rights under this section shall not be affected by any assignment or trustee process or attorney’s lien.
Chapter 60: Section 94. Accounts and receipts of collectors; exhibiting on request of municipal officers Section 94. The aldermen or selectmen may require the collector once in two months to exhibit to them a true account of all money received on the taxes committed to him, and to produce the treasurer’s receipts for all money paid into the treasury by him.
Chapter 60: Section 95. Credits and payments to collectors Section 95. The collector shall be credited with all sums abated; with all sums committed and thereafter apportioned under section thirteen of chapter eighty; with the amount of all assessments not apportioned to subsequent years which have been committed under section four of chapter eighty and subsequently recommitted to him to be added to the annual tax on the land; with the amount of taxes for which a judgment has been rendered by any court in favor of the city or town; with the amount of a claim for taxes allowed in favor of the city or town in bankruptcy or receivership cases; with the amount of taxes assessed upon any person committed to jail for non-payment of his tax within two years from the receipt of the tax list by the collector, and who has not paid his tax; with any sums which the town may see fit to abate to him, due from persons committed after the expiration of two years; with all sums withheld by the treasurer of a town under section ninety-three; subject to the provisions of sections forty-eight and fifty-five, with the amount of the taxes and costs, charges and fees where land has been purchased or taken by the town for non-payment of taxes; and upon certification in accordance with section sixty-one, with the amount of subsequent taxes which have become part of the terms of redemption in any tax title held by the town. When a collector is credited with the amount of taxes assessed upon any person committed to jail for the non-payment of his tax, who has not paid his tax, said collector shall also be paid and credited with the fees and charges which have become a part of said taxes and to which he or the officer acting under his warrant is entitled. A collector shall be discharged from liability upon his bond for failure to collect taxes committed to him for collection to the extent that the commissioner shall certify that such taxes are presently uncollectible because of judicial order or decree or because of the financial embarrassment of a public service corporation or because of similar reason and that such taxes are outstanding without fault of such collector; provided, that for the faithful performance of his duty to collect such taxes such collector shall forthwith give a separate bond in such form and sum as the commissioner may prescribe or approve.
Chapter 60: Section 96. Removal of collectors Section 96. If a collector becomes incapacitated by reason of mental illness, absconds or removes from the town or in the judgment of the aldermen or selectmen is about to so remove or is otherwise unable to discharge his duty, or if he refuses on demand to exhibit to the aldermen or selectmen his books, vouchers and accounts of collections as provided in this chapter, the aldermen or selectmen may remove him from office.
Chapter 60: Section 97. Accounts, records, etc.
, of collectors; audits; deposit with assessors; uncollected tax lists Section 97. If a collector ceases to hold the office of collector for any reason, all his accounts, records and papers, including his warrant, which relate to the assessment and collection of taxes in his town shall, forthwith after an audit thereof has been made by a competent accountant, be deposited by him, or his executor or administrator, or any other person into whose possession they may come, with the assessors of such town, who thereupon shall turn over his uncollected tax lists to his successor, together with their warrant, which shall cover the uncollected accounts of the original commitment as shown on said lists and shall also turn over all his accounts, records and papers, including his warrant, so deposited with them, except said lists, to the clerk of said town. If the collector is his own successor, he shall complete the collection of the taxes as a part of the duties of his new term of office and not as a part of the duties of his former term of office.
Chapter 60: Section 98. Back taxes; actions to recover Section 98. No action to recover back a tax shall be maintained, except as provided in sections sixty and eighty-five, unless commenced within three months after payment of the tax nor unless such tax is paid either after an arrest of the person paying it, a levy on his goods, a notice of a sale of his land, a written protest signed by him, or a withholding of money due him under section ninety-three. In an action founded on an error or irregularity in the assessment or apportionment of a tax, only the amount in excess of the tax for which the plaintiff was liable shall be recoverable; and no sale, contract or levy shall be avoided solely by reason of such error or irregularity.
Chapter 60: Section 99. Collectors; failure to exhibit accounts or receipts Section 99. A collector who neglects or refuses to exhibit accounts or to produce receipts, as required under section ninety-four, shall forfeit to the town two and one half per cent of the sums committed to him for collection.
levy; exemptions; abatement for theft of motor vehicle Section 1. Except as hereinafter provided, there shall be assessed and levied in each calendar year on every motor vehicle and trailer registered under chapter ninety, for the privilege of such registration, an excise measured by the value thereof, as hereinafter defined and determined, at the rate of twenty-five dollars per thousand of valuation. For the purpose of this excise the value of each such motor vehicle or trailer shall be deemed to be the value, as determined by the commissioner, of motor vehicles or trailers of the same make, type, model, and year of manufacture as designated by the manufacturer, but not in excess of the following percentages of the list price established by the manufacturer for the year of manufacture, namely:—In the year preceeding the designated year of manufacture.
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. 50% In the year of manufacture.
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. 90% In the second year.
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. 60% In the third year.
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. 40% In the fourth year.
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. 25% In the fifth and succeeding years.
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. 10% A motor vehicle dealer to whom a general distinguishing number or mark has been issued shall, for the privilege of such registration, pay to the collector of taxes for the city or town in which such dealership is licensed, a special excise in the amount of $100.
00 for each registration plate issued by the registrar of motor vehicles under such general distinguishing number or mark. Such motor vehicle dealer shall otherwise be exempt from the excise imposed by this section on any motor vehicle owned by such motor vehicle dealer, which motor vehicle may be operated by such dealer, the spouse of such dealer, a co-owner of such dealer or dealership entity, the spouse of such co-owner or an employee of such dealer whose duties involve the sale of motor vehicles at any time for any purpose, including personal use, provided that such employee renders at least 20 hours of service each week to such dealer and provided that such co-owner holds at least 40 per cent proprietary interest in such motor vehicle dealer or any such dealership entity; provided, however, that a motor vehicle which is operated under such general or distinguishing mark or number shall, at all times, display all notices and stickers required by applicable law to be eligible for sale.
The term “year of manufacture”, as used in this section, shall mean the year used by the manufacturer of the motor vehicle or trailer in connection with the designation by him or it of the model of such motor vehicle or trailer.
Nothing in this section shall be construed to prevent the board of assessors or the commissioner of revenue, as the case may be, from granting an abatement in any case in which the valuation aforesaid is in their or his opinion excessive.
The excise imposed by this section shall not apply to motor vehicles or trailers owned and registered by the commonwealth or any political subdivision thereof, or to motor vehicles or trailers owned and registered by a corporation whose personal property is exempt from taxation under clauses Third and Tenth of section five of chapter fifty-nine. Motor vehicles or trailers owned or controlled by a manufacturer, or farmer to whom has been issued a general distinguishing number or mark under section five of chapter ninety, and trailers owned or controlled by a dealer to whom there has been issued a general distinguishing number or mark, shall be exempt from the excise imposed by this section, upon application in writing filed with the assessors, if and so long as such motor vehicle or trailer is operated or propelled over the highways solely in connection with the business of the owner or controller as such manufacturer or farmer and in no way for his personal use or convenience or the personal use and convenience of his family or any other person; provided, that such application shall contain a statement subscribed under penalties of perjury by such owner or controller to the effect that such motor vehicle or trailer is and will be operated or propelled only in the manner aforesaid; and provided further that if any such motor vehicle or trailer is operated or propelled otherwise than in the manner aforesaid, there shall be assessed and levied on such motor vehicle or trailer the excise imposed by this chapter, and a penalty of one hundred dollars, which excise and penalty shall be assessed by the assessors and collected by the collectors of taxes, nor shall such excise be abated by reason of any subsequent transfer of such motor vehicle or trailer. If no application for exemption is filed with the assessors as aforesaid, any motor vehicle or trailer owned or controlled by a manufacturer and operated or propelled under a general distinguishing number or mark issued to such manufacturer shall be subject to the excise imposed by this chapter, which excise shall be assessed by the assessors and collected by the collectors of taxes.
The excise imposed by this section shall not apply to motor vehicles leased for a full calendar year to a charitable organization when such vehicle is owned and registered by a lessor engaged in the business of leasing motor vehicles. In any city or town which accepts the provisions of this sentence, by a vote of the city council with the approval of the mayor, in a town, by a vote of the town meeting, and in a municipality having a town council form of government, by a vote of the town council. The excise tax imposed by this section shall not apply to a motor vehicle owned and registered by a former prisoner of war defined as any regularly appointed, enrolled, enlisted, or inducted member of the military forces of the United States who was captured, separated and incarcerated by an enemy of the United States during an armed conflict; provided, however, that the excise tax shall not apply to a motor vehicle owned and registered by the surviving spouse of a deceased former prisoner of war, until such time as the surviving spouse remarries or fails to renew such registration. As used herein, the term “charitable organization” means an organization, other than a degree granting or diploma awarding educational institution, whose personal property is exempt from taxation under clause Third of section five of chapter fifty-nine.
The excise imposed by this section shall not apply to a motor vehicle owned and registered by a World War I, World War II, Korean or Vietnam veteran who according to the records of the United States Veterans Administration, by reason of service in the armed forces of the United States, has suffered loss, or permanent loss of use of, one or both feet, or loss, or permanent loss of use of, one or both hands; nor to a motor vehicle owned and registered by a World War I, World War II, Korean or Vietnam veteran who is receiving a statutory award from the Veterans Administration for the loss of sight of one eye or who according to the records of the United States Veterans Administration, by reason of service in the armed forces of the United States, has suffered permanent impairment of vision of both eyes of the following status: central visual acuity of 20/200 or less in the better eye, with corrective glasses, or central visual acuity of more than 20/200 if there is a field defect in which the peripheral field has contracted to such an extent that the widest diameter of visual field subtends an angular distance no greater than twenty degrees in the better eye; nor to a motor vehicle owned and registered to any person who has suffered loss, or permanent loss of use of, both legs or both arms; nor to a motor vehicle owned and registered to any person who has suffered permanent impairment of vision of both eyes of the following status: central visual acuity of 20/200 or less in the better eye, with corrective glasses, or central visual acuity of more than 20/200 if there is a field defect in which the peripheral field has contracted to such an extent that the widest diameter of visual field subtends an angular distance no greater than twenty degrees in the better eye. This exemption shall apply to not more than one motor vehicle owned and registered for the personal, noncommercial use of such veteran or person. After the assessors have allowed an exemption under this paragraph no further evidence of the existence of the facts required by this paragraph shall be required in any subsequent year in the city or town in which the exemption has been so allowed; provided, however, that the assessors may refuse to allow an exemption in any subsequent year if they become aware that the veteran or person did not satisfy all of the requisites of this section at the time the exemption was first granted.
If a motor vehicle or trailer is originally registered after January thirty-first in any year, the excise under this section shall be that proportion of the excise for the full year which the number of months in said year following the month preceding that in which the motor vehicle or trailer is registered bears to twelve; but no excise shall be assessed on the same motor vehicle or trailer more than once in any calendar year by reason of the renewal of the registration of such vehicle within the calendar year, unless its ownership is transferred by sale or otherwise and its registration surrendered or it is registered after a surrender or expiration of registration upon removal of its owner to another state and registration in such other state. If during any calendar year ownership of a motor vehicle or trailer subject to an excise under this section is transferred by sale or otherwise and the registration of such motor vehicle or trailer is surrendered, or if during any calendar year the owner of a motor vehicle or trailer subject to such an excise removes to another state and registers such motor vehicle or trailer in such other state and surrenders or does not renew his registration in this state, the excise under this section shall be reduced upon application by an abatement equal to that proportion of an excise under this section on such motor vehicle or trailer for the full calendar year which the number of months in said year remaining after the month in which such transfer by sale or otherwise or such surrender or expiration of registration occurs bears to twelve; provided, however, that if in the month in which such transfer by sale or otherwise occurs, the person making such transfer registers another motor vehicle or trailer under chapter ninety and thereby becomes subject to an excise under this section on such other motor vehicle or trailer for such month, the excise under this section on the motor vehicle or trailer transferred shall be further reduced upon application as aforesaid by an abatement equal to one twelfth of a full calendar year’s excise under this section on the motor vehicle or trailer transferred. If before an excise imposed under this section is assessed, notice of transfer by sale or otherwise and surrender of registration or of surrender or expiration of registration as aforesaid is received by the official or officials authorized to make the assessment, the excise shall be assessed in the amount to which it would be reduced by abatement as aforesaid. The excise imposed by this section shall in no event be less than five dollars; no abatement under this section shall reduce any such excise to less than five dollars; no abatement shall be granted in an amount less than five dollars; and no refund shall be paid in an amount less than five dollars.
The excise imposed by this section shall not apply to the registration by an inhabitant of any state other than this commonwealth or by a partnership, voluntary association or corporation which does not have a principal place of business in this commonwealth, of any motor vehicle or trailer to be customarily kept in another state; provided, such motor vehicle or trailer is also registered in such other state during the period when registered in this commonwealth, and if such other state does not impose an excise, privilege or property tax or fee in lieu of or in addition to a registration fee, or does not impose a registration fee at a rate greater than that required for registration in this commonwealth, upon motor vehicles or trailers, as the case may be, customarily kept in this commonwealth and registered by an inhabitant of this commonwealth, or by a partnership, voluntary association or corporation having its principal place of business in this commonwealth. The commissioner shall determine what states do not impose such additional excise, privilege or property tax or fee, or registration fee or fee in lieu of such levies and his determination shall be final.
If a motor vehicle or trailer is stolen, the owner of such motor vehicle or trailer may apply for an abatement of excise, provided:(1) The owner of the stolen vehicle or trailer has notified the local police authorities of the theft within forty-eight hours of discovery of the theft.
(2) The owner of the stolen motor vehicle or trailer has surrendered the certificate of registration of the stolen motor vehicle or trailer and has obtained a certificate, setting forth the facts, and signed by the registrar of motor vehicles or his authorized agent. Such surrender shall not be made sooner than thirty days subsequent to the date of the theft.
The excise may then be reduced by an abatement equal to that proportion of an excise under this section on such motor vehicle or trailer for the full calendar year which the number of months in said year remaining after the month in which such surrender of the certificate of registration occurs bears to twelve; provided, however, that should the motor vehicle or trailer be subsequently recovered and registered in the same calendar year by the same owner an additional excise which shall be that proportion of the excise for the full year which the number of months in said year following the month preceding that in which the motor vehicle or trailer is registered bears to twelve, shall be paid, notwithstanding any provisions of this section to the contrary. The commissioner or the assessors, as the case may be, may require that the owner of the stolen motor vehicle or trailer exhibit the certificate of surrender of registration and provide them with a written statement from the local police authorities certifying that such authorities were notified of the theft and that the stolen motor vehicle or trailer has not been recovered.
Whoever falsely reports the theft of a motor vehicle or trailer for the purposes of securing an abatement of excise shall forfeit a sum not larger than three times the excise due on the vehicle for the entire year, such sum to be recovered in a civil action brought by the city or town to which the excise was payable.
Section 2. Except as otherwise provided in section one, if the owner of the motor vehicle or trailer registered is an individual inhabitant of the commonwealth, or a partnership, voluntary association or corporation having a principal place of business in the commonwealth or if the owner of the motor vehicle or trailer registered is not such an individual, partnership, voluntary association or corporation but the vehicle or trailer is customarily kept in any particular municipality in the commonwealth, the board of assessors shall assess the excise imposed by section one, and commit the same to the collector of taxes with their warrant for the collection thereof. Otherwise the excise so imposed shall be assessed and collected by the commissioner. The excise shall be assessed to the owner of the motor vehicle or trailer registering the same, and the registrar of motor vehicles shall promptly transmit to the commissioner a notice of the registration of a motor vehicle or trailer subject to this excise, giving the name and residential address of the owner, if an individual, or the name and principal place of business in this commonwealth, if any, otherwise that outside the commonwealth, if a corporation, partnership or voluntary association, the municipality in which the motor vehicle or trailer is customarily to be kept if it is to be kept in the commonwealth, the name of the maker, the year of manufacture as designated by the manufacturer, the model and type of vehicle or trailer, the type of transmission and the operator’s license number of the owner of the vehicle, if any. The commissioner may require from the owner such further information as may be necessary for the purposes of this chapter. If an application for the registration of a motor vehicle or trailer contains a statement that the motor vehicle or trailer is customarily to be kept in any particular district, section or part of a city or town, the commissioner shall determine in what city or town said district, section or part is located, and shall transmit the information to the assessors. The commissioner shall, within eight months of the receipt of such information, transmit to the boards of assessors the information received relative to registration with respect to motor vehicles and trailers locally assessable sent to him by the registrar of motor vehicles, and, under such provisions as he deems best, make available to the local assessors information showing the values as determined under section one. All tax notices sent to owners of vehicles notifying said owners of the amount of excise tax due and the due date shall indicate the owner’s license to operate number as appearing on the registration application, renewal application or amended registration as provided in section two of chapter ninety. The excise hereunder shall be due and payable at the expiration of thirty days from the date upon which the notice was issued by the collector or the commissioner pursuant to this section. The collector of taxes or the commissioner, as the case may be, shall seasonably notify the owner of the excise assessed and the due date, but failure to receive notice shall not affect the validity of the excise. The owner, if aggrieved by the excise assessed, may at any time within 3 years after the date the excise was due or 1 year after the date the excise was paid, whichever is later, apply for an abatement to the board of assessors, and from a decision of the board of assessors upon such application, an appeal may be taken to the county commissioners or to the appellate tax board, all in accordance with section 64 or 65 of chapter 59. If an abatement of an excise assessed by a board of assessors is ordered by a decision of the county commissioners or the appellate tax board, any overpayment with interest thereon at the rate of six per cent per annum from the date of payment shall be refunded by the city or town treasurer from any available funds, upon certificate by the collector of taxes and approval for payment as required by section fifty-two of chapter forty-one, without any appropriations therefor by the municipality. Owners who neglect to pay the excise assessed under this chapter shall pay interest at the rate of twelve per cent per annum from the time when such excise was payable until paid. The notice issued pursuant to this section shall bear on its face a statement of the time within which petitions for abatement of the excise may be filed.
The provisions of chapter sixty-two C shall apply to the excises assessed by the commissioner.
driver’s license and vehicle registration Section 2A. If an excise assessed under this chapter remains unpaid for fourteen days after a demand therefor made more than one day after such excise becomes due and payable, and if the local tax collector or commissioner of revenue elects to utilize the services of a deputy collector, then said deputy collector or the local tax collector or commissioner of revenue, as the case may be, shall send a notice of warrant to the delinquent taxpayer. In the event that the delinquent taxpayer does not respond within thirty days to said notice of warrant then a service warrant shall be made. If the tax remains unpaid after the service of warrant then the deputy collector may, at the discretion of the local collector, return the uncollected warrants of those delinquent taxpayers to the local tax collector or commissioner of revenue. The local tax collector, the commissioner of revenue, or their designee, as the case may be, may at any time and from time to time not later than six years after the initial excise tax issuance was made, transmit to the registrar of motor vehicles, hereinafter in this section called the registrar, in such form as approved by the registrar and by the joint committee on taxation, notice of such nonpayment, specifying the name and address of the person to whom the excise is assessed, the amount of the excise due and all interest thereon and costs relative thereto and such information as to the motor vehicle or trailer assessed as was transmitted by the registrar to the commissioner of revenue under section two; provided, however, that no notice shall be transmitted to the registrar under this section at a time when there is pending before the local board of assessors or the appellate tax board, as the case may be, a duly filed application for the abatement of such excise in whole or in part nor within thirty days after action upon any such application by the local board of assessors or the appellate tax board, as the case may be.
Upon receipt of such notification of nonpayment the registrar shall place the matter on record and not renew the license to operate a motor vehicle of the registered owner of said vehicle or the registration of said vehicle nor allow an exchange of the registration of such vehicle nor issue a new registration of such vehicle to the person to whom the unpaid excise tax was assessed until after notice from the local tax collector or the commissioner of revenue that the matter has been disposed of in accordance with law.
Upon such notification of nonpayment to the registrar, an additional twenty dollar charge payable to the registrar of motor vehicles shall be assessed against the registered owner of said vehicle. It shall be the duty of the local tax collector or commissioner of revenue to notify the registrar forthwith that such matters have been disposed of in accordance with law; provided however, that a certified receipt of full and final payment from either the local tax collector or commissioner of revenue shall also serve as a legal notice to the registrar that the matter has been so disposed of.
Except as heretofore provided, the registrar shall approve such forms as he deems necessary to implement this section and said forms shall be printed and used by the cities and towns.
On or before September first of each year, the registrar of motor vehicles shall certify for each city and town in the commonwealth the total number of charges to be assessed pursuant to this section based upon the number of notices received by the registrar that have been disposed of in accordance with law. The registrar shall include such assessments in the warrants prepared in accordance with section twenty of chapter fifty-nine.
Section 3. In the collection of this excise, the collectors of taxes shall have all the remedies provided by chapter sixty.
effect of this chapter Section 4. The provisions of this chapter, other than those contained in section two A thereof, shall not be construed to alter or amend the provisions of law with respect to the registration of motor vehicles or trailers.
Section 6. The excise locally assessable under this chapter shall be laid and collected at the residential address of the owner, if an individual, or at the principal place of business in this commonwealth, if a partnership, voluntary association or corporation, as determined by the owner’s registration, except that if a motor vehicle or trailer is customarily kept in some other municipality, the excise shall be laid and collected in such other municipality.
Section 7. If a collector is satisfied that an excise that has been committed to him or to any of his predecessors in office for collection, is uncollectible by reason of the death, absence, poverty, insolvency, bankruptcy, or other inability of the person assessed to pay, he shall notify the assessors thereof in writing on oath, stating why such excise cannot be collected. The assessors shall act upon such notification within thirty days, and, after due inquiry, may abate such excise or any part thereof, and shall certify such abatement in writing to the collector, and said certificate shall discharge the collector from further obligation to collect the excise so abated.
Section 8. Notwithstanding the failure of the owner of a motor vehicle on which an excise was assessed under this chapter to apply for an abatement within the time set forth in section 2, the board of assessors may abate the whole, or any part of any such excise, or any interest thereon or costs relative thereto, that remains unpaid where, in the assessors’ opinion it should be abated. No such abatements shall be granted unless they are in accordance with such rules, regulations and guidelines as the commissioner of revenue may prescribe and no interest shall be due in connection with any such abatement. Whenever an abatement is granted under this section, the assessors shall enter the same in their record of abatements. The assessors shall annually, not later than August 1, report to the commissioner, in the form and manner prescribed by him, the abatements granted during the prior fiscal year.
Chapter 60B: Section 1. Definitions Section 1. As used in this chapter, the following words shall, unless the context clearly requires otherwise, have the following meanings:“Vessel”, every watercraft, including documented boats and ships, used or capable of being used as a means of transportation on water, and includes all equipment, including mode of power, and furnishings that are normally required aboard the vessel during accomplishment of the functions for which the vessel is being utilized.
“Habitually moored or docked”, the place where the owner has usual mooring or dockage for the summer season.
“Principally situated”, for a registered ship or vessel where it is registered, and for a non registered ship or vessel, whether documented or not, the city or town in Massachusetts where it is principally located during the calendar year.
Chapter 60B: Section 2. Excise taxes Section 2. (a) Except as hereinafter provided there shall be assessed and levied by each city and town in each fiscal year on every vessel, and its equipment, for the privilege of using the waterways of the commonwealth, an excise measured by the value thereof, as hereinafter defined and determined, at the rate of ten dollars per thousand of valuation.
(b) Any person who owns such a vessel on July first shall annually, on or before August first, make a return on oath to the assessors of the city or town where such vessel is habitually moored or docked, or in the case of a vessel which has no mooring or docking space, where said vessel is principally situated, setting forth the vessel’s registration or documentation number, if any; an adequate description, as well as the owner’s estimate of the fair cash value of said vessel and any engine or motor used to propel said vessel, as of the next preceding July first; and the place of habitual mooring or docking or other principal location of said vessel.
(c) For the purpose of computing the excise under this chapter the value of each such vessel, and its equipment, shall be deemed to be the fair cash value as determined by the assessors of each city and town, but not in excess of the following values:(d) The payment of such excise shall exempt such owner from any other tax applicable to said vessels and their equipment under chapter fifty-nine.
(e) If an owner fails to make such a return within the time herein provided, the assessors may abate the tax otherwise imposed by this chapter if such owner provides the assessors with a reasonable excuse for failure to file such return and if the return is filed on or before October thirty-first of the year in which the tax is assessed; but no abatement hereunder shall reduce the tax otherwise imposed to an amount less than the sum of the excise imposed by this section plus fifty per cent thereof.
(f) Said excise shall be assessed in the city or town where the vessel is habitually moored or docked, or in the case of a ship or vessel which has no mooring or docking space, where the ship or vessel is principally situated; provided, however, that if more than one municipality owns property in a harbor, the municipality which maintains such harbor in which the vessel is habitually moored, docked or situated shall assess and collect said excise; and provided, further, that where more than one municipality maintains portions of the harbor, the municipality which maintains that portion of the harbor in which the vessel is habitually moored, docked or situated shall assess and collect said excise.
(g) Nothing in this section shall be construed to prevent the board of assessors from granting an abatement in any case in which the excise aforesaid is, in the opinion of the board, excessive.
(h) If during any fiscal year ownership of a boat subject to an excise under this chapter is transferred by sale or otherwise, or if during any fiscal year the owner of a boat subject to such an excise removes to another state and registers a boat in such other state and surrenders or does not renew his registration in this state, the excise under this chapter shall be reduced, upon application, by an abatement equal to the proportion of an excise under this chapter on such boat for the full fiscal year which the number of months in said year remaining after the month in which such transfer by sale or otherwise or such surrender or expiration of registration occurs bears to twelve.
(i) All sums received from the excise imposed under this chapter shall be paid into the treasury of the city or town and fifty per cent of said excise shall be credited to the municipal waterways improvement and maintenance fund established under the provisions of section five G of chapter forty.
Chapter 60B: Section 3. Exemptions Section 3. The excise imposed by this chapter shall not apply to vessels described in section eight of chapter fifty-nine and in section sixty-seven of chapter sixty-three; to vessels owned by the commonwealth or any political subdivision thereof; to law enforcement vessels; to vessels under construction; to ferries; to boats, fishing gear and nets owned and actually used by the owner in the prosecution of his business if engaged exclusively in commercial fishing, with a total value of ten thousand dollars or less; nor to other vessels with a value of one thousand dollars or less. Said exemptions shall not subject said vessels and their equipment to any other tax under section four of chapter fifty-nine.
Chapter 60B: Section 4. Collector of taxes; penalties Section 4. The board of assessors, upon assessing the excise imposed by this chapter, shall commit the same to the collector of taxes with their warrant for the collection thereof. The collector of taxes shall seasonably notify the owner of the excise assessed and the due date, but failure to receive notice shall not affect the validity of the excise. Said excise shall be due and payable at the expiration of sixty days from the date upon which the notice was issued by the collector pursuant to this chapter.
Failure to pay said excise by the due date shall result in a penalty being imposed which shall be equal to twenty dollars or twenty per cent of the amount of the excise due, whichever is greater. The penalty shall be in addition to the amount of excise due and any interest thereon imposed by law. If said excise remains unpaid after the due date, the harbormaster of a city or town shall refuse to allow the vessel to moor, dock, or otherwise be situated within the waterways of said city or town. All sums received from said penalty shall be credited to the Municipal Waterways Improvement and Maintenance Fund, established under the provisions of clause (72) of section five of chapter forty.
Chapter 60B: Section 5. Collection provisions Section 5. The provisions of law relative to the collection, payment, abatement, verification and administration of the motor vehicle excise imposed under chapter sixty A shall so far as pertinent apply to the excise imposed under this chapter.
Chapter 60B: Section 6. Ship and vessel information Section 6. The commissioner of corporations and taxation shall annually transmit to the director of marine and recreational vehicles a list of all ships or vessels documented as of July first under the laws of the United States whose owners reside in Massachusetts. The boat list shall include for each boat the name and residence of the registered owner, the documentation number, type, length, and model year of the boat and type and horsepower of the engine or motor used to propel said boat and the city or town in which it is habitually moored or docked.
Chapter 61: Section 1. Definitions Section 1. For purposes of this chapter, unless the context otherwise requires, the following words shall have the following meanings:—“Cut”, sever or taken from the soil.
“Forest land”, land that is at least sixteen and seven-tenths per cent stocked, that contains at least seven and five-tenths square feet of basal area per acre by forest trees of any size; or that formerly had such tree cover and is not currently developed for non-forest use; or that is a plantation containing at least five hundred trees per acre.
“Forest products”, wood, timber, Christmas trees, other tree forest growth and any other hardwood product produced by forest vegetation.
“Certification”, approval of a forest management plan by the state forester.
“Contiguous land”, land separated from other land under the same ownership by a public or private way, waterway or an easement for water supply.
“Forest management plan” or “management plan”, a completed copy of a form provided by the state forester executed by the owner and the state forester that provides for a ten year program of forest management, including intermediate and regeneration cuttings.
“Cutting plan”, a completed copy of a form approved by the state forester which describes the species, dimensions, and quantity of a proposed forest crop to be harvested and which is certified by the state forester as being in accordance with the provisions of section forty to forty-six, inclusive, of chapter one hundred and thirty-two.
“Not used for purposes incompatible with forest production”, uses formally proposed or permitted that do not interfere with or reduce the quantity and quality of a continuous forest crop.
“Owner”, person or persons holding title to a parcel of forest land.
“Parcel”, land held by the same owner under a deed of title upon which no subdivision plan is on file and which has no encumbrance incompatible with the provisions of this chapter.
“Region”, one of the five geographic subdivisions of the commonwealth utilized for administrative purposes by the department of environmental management.
“Stumpage value”, fair market value of forest products immediately prior to severing.
Chapter 61: Section 2. Classification of forest lands by assessors; application Section 2. Except as otherwise herein provided, all forest land, parcels of not less than ten contiguous acres in area, used for forest production shall be classified by the assessors as forest land upon written application sufficient for identification and certification by the state forester. Such application shall be accompanied by a forest management plan.
Upon receipt of such certified application, the board of assessors shall, upon a form approved by the commissioner of revenue, forthwith record in the registry of deeds of the county or district in which the parcel is situated, a statement of such classification which shall constitute a lien upon the land for taxes levied under the provisions of this chapter. The statement shall name the owner and a description of the land. The assessors shall return a copy of said recorded statement to the office of the state forester containing the date, book and page number of such recording. Said lien may be discharged by the board of assessors. All recording fees in connection with such statement or discharge shall be paid by the owner of such parcel.
Land shall be removed from classification by the assessor unless, at least every ten years, the owner files with said assessor a new certification by the state forester. The owner of classified forest land shall pay a fee to the commonwealth at the time of application for certification or recertification, said fee to be collected by the state forester based on a per acre administrative cost assessment contained in agency regulations relative to this program, to which shall be added a surcharge at that percentage calculated annually by the commissioner of administration and finance as the set indirect cost rate for that fiscal year for the department of environmental management. The state forester, or his designee, shall have the authority to enter on private lands for the purpose of making investigations to assure compliance with this chapter. Classified forest land shall be subject to the taxes provided in section three. Buildings and structures and the land on which they are erected and which is accessory to their use shall not be entitled to be classified as forest land.
If a single parcel or tract of land consists in part of forest land and in part of other land, the portion consisting of forest land, if said portion comprises at least ten contiguous acres in area and otherwise conforms to the requirements of this chapter shall be classified forest land upon application as hereinbefore provided.
An application to have land classified as forest land shall be submitted to the state forester prior to July first in any year. After certification the owner shall submit to the assessors prior to September first of the same year evidence of certification together with the approved management plan. Classification shall take effect on January first of the year following certification and taxation under this chapter, with the exception of the products tax payable as a condition of classification, shall commence with the fiscal year beginning after said January first.
The state forester shall inspect such land and determine whether or not cutting has occurred within two years prior to such classification. After such inspection the state forester shall determine the stumpage value of the forest products cut and shall inform the assessors in writing of such value and the assessor shall assess the tax provided in section three, the payment of which shall be a condition of classification.
When in judgment of the assessors, land which is classified as forest land or which is the subject of an application for such classification is not being managed under a program, or is being used for purposes incompatible with forest production, or does not otherwise qualify under this chapter, the assessors may, on or before December first in any year file an appeal in writing mailed by certified mail to the state forester requesting a denial of application or, in the case of classified land, requesting removal of the land from such classification. Such appeal shall state the reasons for such request. A copy of the appeal shall be mailed by the assessors by certified mail to the owner of the land. The state forester may initiate, on or before December first of any year, a proceeding to remove land from classification, sending notice of his action by certified mail to the assessors and the owner of such land. The state forester may deny the owner’s application, may withdraw all or part of the land from classification, or may grant the application, imposing such terms and conditions as he deems reasonable to carry out the purpose of this chapter, and shall notify the assessors and the owner of his decision no later than March first of the following year. If the owner or the assessors are aggrieved by his decision they may, on or before April fifteenth, give notice to the state forester of a claim of appeal. The state forester shall convene on or before May fifteenth, a panel in the region in which the land is located. Said panel shall consist of three members, one of whom shall be named by the state forester, one of whom shall be named by the assessors, and one of whom shall be named by the state forester and the assessors. Said panel shall give notice of the date and place of the hearing in writing to the parties seven days at least before the date of said hearing. The panel shall furnish the parties, in writing, a notice of its decision within ten days after the adjournment of said hearing. Decisions of the panel shall be by majority vote of its members. If the owner or the assessors are aggrieved by such decision, they may, within forty-five days from receipt of the decision, petition either the superior court in the county in which the land is located for a review of such decision under the provisions of chapter thirty A or the appellate tax board under the provisions of chapter fifty-eight A, and said land shall not be classified or withdrawn from classification until the final determination of such petition. The state forester may adopt such regulations as he deems necessary to carry out the provisions of this chapter.
Chapter 61: Section 3. Annual products tax and land tax Section 3. The owner of classified forest land shall pay annually a products tax equal to eight per cent of the stumpage value of all forest products cut therefrom with authorization of the owner. The owner shall furnish the assessors with notice of all cutting whether for personal or commercial purposes, and shall pay a products tax thereon.
The state forester shall furnish the assessors all cutting plans filed under section forty to forty-six, inclusive, of chapter one hundred and thirty-two or under the forest management plan.
The assessors shall annually on or before April first give written notice to each owner of classified forest land that said owner is required to make such payment. The owner shall annually before May first make a return, on such forms as shall be approved by the state forester, setting forth the amount of forest products cut from classified forest land during the preceding calendar year and such other information as may be required for assessment of the products tax. On the basis of such return, or any other available information, the assessors shall assess such products tax.
The owner shall also pay, annually, a land tax based upon application of the local rate applicable to commercial property on five per cent of the fair cash valuation placed on said land under the provisions of chapter fifty-nine, said tax to be assessed annually by the assessors, but in no event at a valuation of less than ten dollars per acre.
The products tax and the land tax shall be committed to the collector for collection in the same manner as taxes assessed under chapter fifty-nine. The collector shall notify the person assessed of the amount of the tax in the manner provided in section three of chapter sixty. For the collection of taxes under this chapter the collector shall have all the remedies provided by chapter sixty. Taxes so assessed shall be due and payable on October first of the year in which the return is required to be made, and if not paid on or before November first of the year of assessment, or within thirty days after notification of said taxes if said notice is given after October first, shall bear interest at the rate as provided in section fifty-seven of chapter fifty-nine. Any person aggrieved by the assessment of a tax under this section may within sixty days of the date of notice of the tax apply in writing to the assessors upon a form approved by the commissioner of revenue for abatement thereof, and if the assessors, after hearing, find the tax is excessive, they shall abate it in whole or in part. If the tax has been paid the town treasurer shall repay to the person assessed the amount of such abatement with interest thereon at the current rate as provided in section sixty-nine of said chapter fifty-nine. Any person aggrieved by the refusal of the assessors to so abate a tax in whole or in part or by their failure to act upon such application may appeal to the appellate tax board within thirty days after the date of notice of decision of the assessors or within three months of the date of the application for abatement, whichever date is later. Any overpayment of tax determined by decision of said appellate tax board shall be reimbursed by the town treasurer with interest at the current rate as provided in said section sixty-nine.
Chapter 61: Section 4. Failure to file return; notice of delinquency; interest Section 4. If an owner of classified forest land fails to file a return required by section three the assessors shall send such owner a notice of delinquency and if such owner fails to file such return within twenty days of such notice the assessors shall determine the amount of the products tax due and assess and commit the same within two years after the date upon which the original return was due. The owner may apply to the assessors for abatement and appeal from their decision as provided in section three. A tax so committed shall bear interest from October first of the year in which the original return was due.
Chapter 61: Section 5. Special and betterment assessments Section 5. Classified forest land shall be included in the equalized valuation of the town under sections nine to ten C, inclusive, of chapter fifty-eight. Classified forest land shall be subject to special assessments and betterment assessments; provided, however, that such assessments, for purposes other than the installation of water pipes to provide fire protection to such adjacent forest land, shall become due and payable at the time when said land is removed from classification.
Chapter 61: Section 6. Failure to file return; penalty Section 6. An owner of classified forest land, who received the notice provided in section three, fails to make return, shall be subject to a penalty of five dollars a day during the period of delinquency but the assessors may, for cause, abate such penalty in whole or in part; provided, that such penalty shall in no case exceed the amount of the products tax assessed under section three. Penalties assessed hereunder shall be added to the tax, and shall bear interest and be collected as a part of the tax.
Chapter 61: Section 7. Withdrawal of land from classification; withdrawal penalty tax Section 7. When the owner of classified land withdraws such land or any part thereof from classification, or upon a final determination that said land should be withdrawn from classification, he shall pay to the city or town a withdrawal penalty tax equal to the difference between the amount of taxes which would have been paid under chapter fifty-nine and the sum of the products tax established by section three of this chapter and the land taxes paid from the last prior certification under the provisions of this chapter, or from the immediately preceding five years, whichever period is the longer. There shall be added to the tax due, under this chapter, for each taxable year, an amount of interest determined at the rate as is established under section thirty-two of chapter sixty-two C. When said voluntary withdrawal occurs at the end of a completed certification period, credit against the withdrawal penalty tax shall be given for any tax payments made under the provisions of this chapter during the said certification period. No such credit for products tax shall be given if the land is withdrawn upon a final determination that the land was not properly classified or managed under a forest management plan, or if said land is withdrawn voluntarily by the owner at a time other than the end of the certification period.
Chapter 61: Section 8. Conversion of land to residential, industrial or commercial use; notice to city or town; first refusal option Section 8. Land taxed under this chapter shall not be sold for, or converted to, residential, industrial or commercial use while so taxed unless the city or town in which such land is located has been notified of the intent to sell for, or so convert to, such other use; provided, however, that the discontinuance of forest certification shall not, in itself, be deemed a conversion. Specific use of land for a residence for the owner or the parent, grandparent, child, grandchild, or brother or sister of the owner, or the surviving husband or wife of any deceased such relative, or for living quarters for any persons actively employed full time in the forest use of such land, shall not be deemed to be a conversion for purposes of this section and a certificate of the board of assessors, recorded with the registry of deeds, shall conclusively establish that a particular use is such a use. For a period of one hundred and twenty days subsequent to such notification, said city or town shall have, in the case of intended sale, a first refusal option to meet a bona fide offer to purchase said land, or, in the case of intended conversion not involving sale, an option to purchase said land at full and fair market value to be determined by impartial appraisal. After a public hearing, said city or town may assign either of such options to a nonprofit conservation organization under such terms and conditions as the mayor or board of selectmen deem appropriate. Such assignment shall be for the purpose of maintaining the major portion of the property subject to this assignment in use as forest land. Notice of such public hearing shall be given in accordance with the provisions of section twenty-three B of chapter thirty-nine. Such notice of intent shall be sent by the landowner by certified mail to the mayor and city council of a city, or to the board of selectmen of a town, to its board of assessors and to its planning board and conservation commission, if any, and said option period shall run from the day following the latest date of deposit of any such notices in the United States mail. No sale or conversion of such land shall be consummated unless and until either said option period shall have expired or the landowner shall have been notified in writing by the mayor or board of selectmen of the city or town in question that said option will not be exercised. Such option may be exercised only by written notice signed by the mayor or board of selectmen, mailed to the landowner by certified mail at such address as may be specified in his notice of intention and recorded with the registry of deeds, within the option period. If either option has been assigned to a nonprofit conservation organization as provided in this section, such written notice shall state the name and address of such organization and the terms and conditions of such assignment. An affidavit before a notary public that he has so mailed such notice of intent on behalf of a landowner shall conclusively establish the manner and time of the giving of such notice; and such an affidavit, and such a notice that the option will not be exercised, shall be recorded with the registry of deeds. Each notice of intention, notice of exercise of the option and notice that the option will not be exercised shall contain the name of the record owner of the land and description of the premises so to be sold or converted adequate for identification thereof; and each such affidavit before a notary public shall have attached to it a copy of the notice of intention to which it relates. Such notices of intention shall be deemed to have been duly mailed to the parties above specified if addressed to them in care of the town or city clerk; and in the case of notice to a city council or board or commission, addressed to it as such entity. The provisions of this section shall not be applicable with respect to a mortgage foreclosure sale, but the holder of a mortgage shall, at least ninety days before a foreclosure sale, send written notice of the time and place of such sale to the parties and in the manner above provided in this section for notice of intent to sell or convert, and the giving of such notice may be established by an affidavit as above set forth.
Chapter 61A: Section 1. Land in agricultural use defined Section 1. Land shall be deemed to be in agricultural use when primarily and directly used in raising animals, including, but not limited to, dairy cattle, beef cattle, poultry, sheep, swine, horses, ponies, mules, goats, bees and fur-bearing animals, for the purpose of selling such animals or a product derived from such animals in the regular course of business; or when primarily and directly used in a related manner which is incidental thereto and represents a customary and necessary use in raising such animals and preparing them or the products derived therefrom for market.
Chapter 61A: Section 10. Factors to be considered in valuing land Section 10. The board of assessors of a city or town, in valuing land with respect to which timely application has been made and approved as provided in this chapter, shall consider only those indicia of value which such land has for agricultural, horticultural or agricultural and horticultural uses. Said board, in establishing the use value of such land, shall use the list of ranges published pursuant to section eleven and its personal knowledge, judgment and experience as to such agricultural land values.
Chapter 61A: Section 11. Farmland valuation advisory commission; expenditures Section 11. There is hereby created a farmland valuation advisory commission, the members of which shall be the commissioner of revenue who shall be chairman, the commissioner of agriculture, the director of housing and community development, the dean of the college of food and natural resources of the University of Massachusetts, or their respective designees, and one person to be appointed by the governor who shall be a member of a local board of assessors. The commission shall meet from time to time at the call of any of the above named commissioners and shall, prior to January first of each year, determine, for application during the ensuing tax year, a range of values on a per acre basis for each of the several classifications of land in agricultural or horticultural uses in the several counties of the commonwealth. The annual list of value ranges so determined shall be published by the commissioner of revenue and shall be mailed by him to the board of assessors of each city and town in the commonwealth no later than February first of each year. In determining such ranges in value, the commission shall consider evidence of agricultural or horticultural land use capability available from soil surveys and such other evidence and documentation as may, in its judgment, appear pertinent.
The commissioner of revenue may expend such sums as may be appropriated from the agricultural purposes fund for the purposes of securing data for use in determinations by said commission and for expenses incurred in the administration of this chapter.
Chapter 61A: Section 12. Sale of land or change of use; liability for conveyance tax Section 12. Any land in agricultural, horticultural or agricultural and horticultural use which is valued, assessed and taxed under the provisions of this chapter, if sold for other use within a period of ten years from the date of its acquisition or the earliest date of its uninterrupted use by the current owner in agriculture or horticulture, whichever is earlier, shall be subject to a conveyance tax applicable to the total sales price of such land, which tax shall be in addition to such taxes as may be imposed under any other provision of law. Said conveyance tax shall be at the following rate: ten per cent if sold within the first year of ownership; nine per cent if sold within the second year of ownership; eight per cent if sold within the third year of ownership; seven per cent if sold within the fourth year of ownership; six per cent if sold within the fifth year of ownership; five per cent if sold within the sixth year of ownership; four per cent if sold within the seventh year of ownership; three per cent if sold within the eighth year of ownership; two per cent if sold within the ninth year of ownership; one per cent if sold within the tenth year of ownership. No conveyance tax shall be imposed under the provisions of this section following the end of the tenth year of ownership. Said conveyance tax shall be due and payable by the grantor at the time of transfer of the property by deed or other instrument of conveyance and shall be payable to the tax collector of the city or town in which the property is entered upon the tax list; provided, that, in the case of taking by eminent domain, the value of the property taken shall be determined in accordance with the provisions of chapter seventy-nine and the amount of conveyance tax, if any, shall be added thereto as an added value; and provided further, that if there is filed with the board of assessors an affidavit by the purchaser that such land is being purchased for agricultural, horticultural or agricultural and horticultural use, no conveyance tax shall be payable by the seller by reason of such sale, but if such land is not in fact continued in such use, the purchaser shall be liable for any conveyance tax that would have been payable on such sale as a sale for other use. Except with respect to eminent domain takings, the provisions of this section shall not be applicable to the following: mortgage deeds; deeds to or by the city or town in which such land is located; deeds which correct, modify, supplement or confirm a deed previously recorded; deeds between husband and wife and parent and child when no consideration is received; tax deeds; deeds releasing any property which is a security for a debt or other obligation; deeds for division of property between owners without monetary consideration; foreclosures of mortgages and conveyances by the foreclosing parties; deeds made pursuant to a merger of a corporation or by a subsidiary corporation to its parent corporation for no consideration other than the cancellation and surrender of capital stock of such subsidiary which do not change beneficial ownership; and property transferred by devise or otherwise as a result of death. A nonexempt transfer subsequent to any exempt transfer or transfers shall be subject to the provisions of this section. Upon such nonexempt transfer the date of acquisition by the grantor, for purposes of this section, shall be deemed to be the date of the last preceding transfer not excluded by the foregoing provisions from application of this section; except that in the case of transfer by a grantor who has acquired the property from a foreclosing mortgagee the date of acquisition shall be deemed to be the date of such acquisition. Any land in agricultural or horticultural use which is valued, assessed and taxed under the provisions of this chapter, if changed by the owner thereof to another use within a period of ten years from the date of its acquisition by said owner, shall be subject to the conveyance tax applicable hereunder at the time of such change in use as if there had been an actual conveyance, and the value of such land for the purpose of determining a total sales price shall be fair market value as determined by the board of assessors of the city or town involved for all other property. If any tax imposed under this section should not be paid, the collector of taxes shall have the same powers and be subject to the same duties with respect to such taxes as in the case of the annual taxes upon real estate, and the law in regard to the collection of the annual taxes, to the sale of land for the nonpayment thereof and to redemption therefrom shall apply to such taxes, so far as the same are applicable.
Chapter 61A: Section 13. Change of use; liability for roll-back taxes Section 13. Whenever land which is valued, assessed and taxed under this chapter no longer qualifies as actively devoted to agricultural, horticultural or agricultural and horticultural use, it shall be subject to additional taxes, hereinafter referred to as roll-back taxes, in the current tax year in which it is disqualified and in such of the four immediately preceding tax years in which the land was so valued, assessed and taxed; provided that such roll-back taxes shall not be applicable unless the amount thereof as computed pursuant to this section, exceeds the amount, if any, imposed under the provisions of section twelve and, in such case, the land shall not be subject to the conveyance tax imposed under said section twelve; and provided, further, that no roll-back taxes shall be applicable if the land involved is purchased for a public purpose by the city or town in which it is situated. For each year, the roll-back tax shall be an amount equal to the difference, if any, between the taxes paid or payable in accordance with the provisions of this chapter and the taxes that would have been paid or payable had the land been valued, assessed and taxed without regard to such provisions. If, at the time during a tax year when a change in land use has occurred, the land was not then valued, assessed and taxed under the provisions of this chapter, then such land shall be subject to roll-back taxes only for such of the five immediately preceding years in which the land was valued, assessed and taxed thereunder. In determining the amount of roll-back taxes on land which has undergone a change in use, the board of assessors shall have ascertained the following for each of the roll-back tax years involved:(a) The full and fair value of such land under the valuation standard applicable to other land in the city or town;(b) The amount of the land assessment for the particular tax year;(c) The amount of the additional assessment on the land for the particular tax year by deducting the amount of the actual assessment on the land for that year from the amount of the land assessment determined under subsection (a); and,(d) The amount of the roll-back tax for that tax year by multiplying the amount of the additional assessment determined under subsection (c) by the general property tax rate of the city or town applicable for that tax year.
Chapter 61A: Section 14. Sale for or conversion to residential or commercial use; notice of intent to city or town; option to purchase; assignment of option Section 14. Land which is valued, assessed and taxed on the basis of its agricultural or horticultural use under an application filed and approved pursuant to this chapter shall not be sold for or converted to residential, industrial or commercial use while so valued, assessed and taxed unless the city or town in which such land is located has been notified of intent to sell for or convert to such other use; provided, however, that the discontinuance of the use of such land for agricultural or horticultural purposes shall not be deemed a conversion. Specific use of land for a residence for the owner or a parent, grandparent, child, grandchild, or brother or sister of the owner, or the surviving husband or wife of any deceased such relative, or for living quarters for any persons actively employed full time in the agricultural or horticultural use of such land, shall not be deemed to be a conversion for purposes of this section; and a certificate of the board of assessors, recorded with the registry of deeds, shall conclusively establish that a particular use is such a use. For a period of one hundred twenty days subsequent to such notification, said city or town shall have, in the case of an intended sale, a first refusal option to meet a bona fide offer to purchase said land, or, in the case of an intended conversion not involving sale, an option to purchase said land at full and fair market value to be determined by impartial appraisal. After a public hearing, said city or town may assign either of said options to a nonprofit conservation organization under such terms and conditions as the mayor or board of selectmen deem appropriate. Such assignment shall be for the purpose of continuing the agricultural or horticultural use of the major portion of the property subject to this assignment. Notice of said public hearing shall be given in accordance with the provisions of section twenty-three B of chapter thirty-nine. Such notice of intent shall be sent by the landowner via certified mail to the mayor and city council of a city, or to the board of selectmen of a town, to its board of assessors and to its planning board and conservation commission, if any, and said option period shall run from the day following the latest date of deposit of any of such notices in the United States mails. No sale or conversion of such land shall be consummated unless and until either said option period shall have expired or the landowner shall have been notified in writing by the mayor or board of selectmen of the city or town in question that said option will not be exercised. Such option may be exercised only by written notice signed by the mayor or board of selectmen, mailed to the landowner by certified mail at such address as may be specified in his notice of intention and recorded with the registry of deeds, within the option period. If either option has been assigned to a nonprofit conservation organization as provided in this section, said written notice shall state the name and address of said organization and the terms and conditions of said assignment. An affidavit by a notary public that he has so mailed such a notice of intent on behalf of a landowner shall conclusively establish the manner and time of the giving of such notice; and such an affidavit, and such a notice that the option will not be exercised, shall be recorded with the registry of deeds. Each such notice of intention, notice of exercise of the option and notice that the option will not be exercised shall contain the name of the record owner of the land and a description of the premises so to be sold or converted adequate for identification thereof; and each such affidavit by a notary public shall have attached to it a copy of the notice of intention to which it relates. Such notices of intention shall be deemed to have been duly mailed to the parties above specified if addressed to them in care of the town or city clerk; and in the case of notice to a city council or a board or commission, addressed to it as such entity. The provisions of this section shall not be applicable with respect to a mortgage foreclosure sale; but the holder of a mortgage shall, at least ninety days before a foreclosure sale, send written notice of the time and place of such sale to the parties and in the manner above provided in this section for notice of intent to sell or convert, and the giving of such notice may be established by an affidavit of a notary public as set forth above.
Chapter 61A: Section 15. Taxation of buildings and land occupied by dwelling Section 15. All buildings located on land which is valued, assessed and taxed on the basis of its agricultural or horticultural uses in accordance with the provisions of this chapter and all land occupied by a dwelling or regularly used for family living shall be valued, assessed and taxed by the same standards, methods and procedures as other taxable property.
Chapter 61A: Section 16. Continuance of land valuation, assessment and taxation under this chapter dependent upon qualifying use Section 16. Continuance of land valuation, assessment and taxation under the provisions of this chapter shall depend upon continuance of such land in agricultural or horticultural uses and compliance with other requirements of this chapter and not upon continuance in the same owner of title to such land. Liability to roll-back taxes, determined pursuant to section thirteen, shall attach when such land no longer qualifies as actively devoted to agricultural or horticultural use and shall be the obligation of the then owner of the land. For purposes relating to roll-back taxes such qualification shall depend on the actual use of such land, and not on the filing of application under section six for any year.
Chapter 61A: Section 17. Separation of land to other use; liability for conveyance or roll-back taxes; continuing qualification of remainder Section 17. If, by conveyance or other action of the owner thereof, a portion of land which is valued, assessed and taxed under the provisions of this chapter is separated for a use other than agricultural or horticultural, the land so separated shall be subject to liability for conveyance or roll-back taxes applicable thereto, but such separation shall not impair the right of the remainder of such land to continuance of valuation, assessment and taxation thereunder; provided, that such remaining land continues to qualify under the usage, minimum acreage and other provisions thereof.
Chapter 61A: Section 18. Special or betterment assessments; payment Section 18. Land qualifying for valuation, assessment and taxation under this chapter shall be subject to special assessments or betterment assessments to such pro rata extent as the service or facility financed by such assessment is used for improving the agricultural or horticultural use capability of said land or for the personal benefit of the owner thereof. Any such assessment and interest on account of such suspended special assessments or betterment assessments shall, however, upon application, be suspended during the time the land is in agricultural or horticultural use and shall become due and payable as of the date when the use of such land is changed. The suspended interest shall be equal to the total amount of interest which would have been paid if interest had been paid annually. In the event only a portion of a tract of land which benefits from a suspension of payment is changed from such use, the assessment including interest shall become due and payable as of the date when the use was changed only to the extent of and in the proportion that the frontage of such portion bears to the street frontage of the entire tract of land which originally benefited from a suspension of payment. Upon full payment of a portion of a suspended assessment including interest, the tax collector may dissolve the lien for the assessment insofar as it affects the portion of the land changed from agricultural or horticultural use. The lien for the portion of the original assessment including interest which remains unpaid shall continue and remain in full force and effect until dissolved in accordance with law. A request for such release shall be made in writing to the tax collector, and shall be accompanied by a plan and such other information as is required in the case of a request for a division of an assessment pursuant to section fifteen.
Chapter 61A: Section 19. Roll-back taxes; procedures for assessment; appeal to appellate tax board Section 19. The assessment, collection, apportionment and payment over of the roll-back taxes imposed by section thirteen shall be governed by the procedures provided for the assessment and taxation of omitted property under section seventy-five of chapter fifty-nine. Such procedures shall apply to each tax year for which roll-back taxes may be imposed notwithstanding the limitation set forth in said chapter fifty-nine with respect to the periods for which omitted property assessments may be imposed. Any person aggrieved by any determination or assessment by the board of assessors under this chapter may within sixty days of the date of notice thereof apply in writing to the assessors for modification or abatement thereof. Any person aggrieved by the refusal of the assessors to modify such a determination or make such an abatement or by their failure to act upon such an application may appeal to the appellate tax board within thirty days after the date of notice of their decision or within three months of the date of the application, whichever date is later. It shall be a condition of such appeal with respect to the annual general property tax that the asserted tax be paid, but no payment shall be required as a condition of such appeal with respect to any asserted conveyance tax or roll-back tax. If any payment of any tax imposed by this chapter should be made and as the result of any such modification or abatement by the board of assessors or decision by the appellate tax board it shall appear that any such tax has been overpaid, such excess payment shall be reimbursed by the town treasurer with interest at the rate of six per cent per annum from time of payment. Collection of any conveyance or roll back taxes, by sale or taking or otherwise, may be stayed by the appellate tax board while any such appeal is pending. Any partial payment of the asserted tax that may be required by the appellate tax board in connection with such stay shall not exceed one half of the asserted tax.
Chapter 61A: Section 19A. Sale of land; certification of taxes paid or payable Section 19A. In connection with any proposed or completed sale or other transfer of any land which has been valued, assessed and taxed under the provisions of this chapter, the owner of record of the land may apply to the board of assessors for a certificate of the amount of conveyance tax and roll-back tax, if any, payable by reason of such sale or other transfer, or that no such tax will or has so become payable and stating the amount of any conveyance or roll-back taxes that have theretofore become payable with respect to such land; and such a certificate shall be provided to the applicant within twenty days after application therefor. Such certificate may be recorded with the registry of deeds; and upon recording of such a certificate that no such tax will or has so become payable, or a certificate by the collector of taxes that the amount of tax stated in such certificate of the board of assessors has been paid, all liens on such land for taxes under this chapter shall terminate, except that any liens for any roll-back taxes assessed by reason of such land ceasing to qualify for valuation, assessment and taxation under this chapter after the date of such sale or other transfer, shall continue. In connection with the issuance of such a certificate, the board of assessors may rely upon their own records, affidavits and such other information as they may deem appropriate. The board of assessors shall charge six dollars for each certificate so issued, and the money so received shall be paid into the town treasury.
Chapter 61A: Section 2. Land in horticultural use defined Section 2. Land shall be deemed to be in horticultural use when primarily and directly used in raising fruits, vegetables, berries, nuts and other foods for human consumption, feed for animals, tobacco, flowers, sod, trees, nursery or greenhouse products, and ornamental plants and shrubs for the purpose of selling such products in the regular course of business; or when primarily and directly used in raising forest products under a program certified by the state forester to be a planned program to improve the quantity and quality of a continuous crop for the purpose of selling such products in the regular course of business; or when primarily and directly used in a related manner which is incidental thereto and represents a customary and necessary use in raising such products and preparing them for market.
Chapter 61A: Section 20. Valuation and assessment for purposes other than provisions of this chapter; equalization Section 20. For any purpose, other than the provisions of this chapter, for which the assessed value of land is relevant, including exemptions under the provisions of chapter fifty-nine, land qualifying for taxation under this chapter shall be valued and deemed to have been assessed by the same standards, methods and procedures as other taxable property.
In determining the equalization required by section nine of chapter fifty-eight, the commissioner of revenue shall determine the value of such land on the basis of its agricultural and horticultural use.
Chapter 61A: Section 21. Factual details on tax list Section 21. The factual details to be shown on the tax list of a board of assessors with respect to land which is valued, assessed and taxed under this chapter shall be the same as those set forth by said board with respect to other taxable property in the same city or town.
Chapter 61A: Section 22. Rules and regulations; forms and procedures Section 22. The commissioner of revenue shall promulgate such rules and regulations and shall prescribe the use of such forms and procedures as he deems appropriate to and consistent with effectuation of the purposes of this chapter.
Chapter 61A: Section 23. Use of valuation, etc. procedures to evade taxes; penalties Section 23. Any person using the valuation, assessment and taxation procedures set forth in this chapter for the purposes of evading payment of full and proper taxes shall be subject to a fine of not more than ten thousand dollars or imprisonment for one year or both and to payment to the city or town in which the land is located of an amount equal to three times the amount of taxes so evaded.
Chapter 61A: Section 24. Severability Section 24. If any clause, sentence, subdivision, paragraph, section or part of this act be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, subdivision, paragraph, section or part thereof directly involved in the controversy in which said judgment shall have been rendered.
Chapter 61A: Section 3. Land of five-acre minimum area actively devoted to agricultural or horticultural uses defined; gross sales and program payment standard Section 3. Land not less than five acres in area shall be deemed to be actively devoted to agricultural or horticultural uses when the gross sales of agricultural, horticultural or agricultural and horticultural products resulting from such uses together with the amount, if any, payable under a soil conservation or pollution abatement program of the federal government or the commonwealth total not less than five hundred dollars per year or when the use of such land is clearly proven to be for the purpose of achieving an annual total of not less than five hundred dollars from such gross sales and program payments within the normal product development period as determined by the farmland valuation advisory commission established pursuant to section eleven of this chapter. In cases where the land is more than five acres in area, the gross sales and program payment standard above set forth shall be increased at the rate of five dollars per acre except in the case of woodland or wetland for which such increase shall be at the rate of fifty cents per acre.
Chapter 61A: Section 4. Valuation of land in agricultural, etc. use; contiguous land; tax rate Section 4. For general property tax purposes, the value of land, not less than five acres in area, which is actively devoted to agricultural, horticultural or agricultural and horticultural uses during the tax year in issue and has been so devoted for at least the two immediately preceding tax years, shall, upon application of the owner of such land and approval thereof, be that value which such land has for agricultural or horticultural purposes. For the said tax purposes, land so devoted shall be deemed to include such contiguous land under the same ownership as is not committed to residential, industrial or commercial use and which is covered by application submitted pursuant to section six. Land shall be deemed contiguous if it is separated from other land under the same ownership only by a public or private way or waterway.
Land under the same ownership shall be deemed contiguous if it is connected to other land under the same ownership by an easement for water supply. All such land which is contiguous or is deemed contiguous for purposes of this chapter shall not exceed in acreage one hundred per cent of the acreage which is actively devoted to agricultural, horticultural or agricultural and horticultural uses.
The rate of tax applicable to such agricultural or horticultural land shall be the rate determined to be applicable to class three, commercial property under chapter fifty-nine.
Chapter 61A: Section 5. Contiguous land under one ownership within more than one city or town Section 5. Where contiguous land in agricultural, horticultural or agricultural and horticultural uses under one ownership is located in more than one city or town, compliance with the five-acre minimum area requirements of section four shall be determined on the basis of the entire area of such land and not on the basis of the land area which falls within the bounds of any particular city or town.
Chapter 61A: Section 6. Annual determination of eligibility for valuation; application; form; certification Section 6. Eligibility of land for valuation, assessment and taxation pursuant to section four shall be determined separately for each tax year. Application therefor shall be submitted to the board of assessors of each city or town in which such land is situated not later than October first of the year preceding each tax year for which such valuation, assessment and taxation are being sought and may not thereafter be withdrawn. Application shall be made on a form prescribed by the commissioner of revenue and provided for the use of claimants by said board of assessors. Such form shall provide for the reporting of information pertinent to the provisions of this chapter and of Article XCIX of the Articles of Amendment to the Constitution of the Commonwealth and for certification by the applicant that he will immediately notify the board of assessors in writing of any subsequently developing circumstance within his control or knowledge which may cause a change in use of the land covered by such form prior to October first next following. Any application submitted under this section and covering leased land shall be accompanied by a written statement signed by any lessee of his intent to use such land for the purposes set forth in said application. A certification by a landowner that the information set forth in his application is true may be prescribed by said commissioner to be in lieu of a sworn statement to that effect. An application so certified shall be considered as if made under oath and subject to the same penalties as provided by law for perjury.
Chapter 61A: Section 7. Additional assessment; change in use in pre-tax year between October 1 and December 31 Section 7. If a change in use of land actively devoted to agricultural, horticultural or agricultural and horticultural use occurs between October first and December thirty-first of the year preceding the tax year, the board of assessors shall disallow or nullify the application filed under authority of section six, and, after examination and inquiry, shall determine the full and fair value of said land under the valuation standard applicable to other land and shall assess the same according to such value. If, notwithstanding such change of use, the land is valued, assessed and taxed under the provisions of this chapter in the ensuing year, upon notice thereof said board shall enter an assessment and the amount of the increased tax resulting from such assessment, as an added assessment and tax against such land, in the “Omitted list” for the particular year involved in the manner prescribed in section seventy-five of chapter fifty-nine. The amount of the added assessment shall be equal to the difference, if any, between the assessment imposed under this chapter and the assessment which would have been imposed had the land been valued and assessed as other land. The enforcement and collection of additional taxes resulting from any additional assessment so imposed shall be as provided by said chapter fifty-nine. The additional assessment imposed under this section shall not affect the conveyance or roll-back taxes, if any, applicable under sections twelve and thirteen.
Chapter 61A: Section 8. Timely filing of application in towns or cities with programs of revaluation not completed by October 1 of pre-tax year Section 8. In any city or town in which a program of revaluation of all property therein has been or shall be undertaken and completed in time to be reflected in the assessments for the next succeeding tax year but not insufficient time to permit landowners to make application prior to October first of the pre-tax year for the valuation, assessment and taxation of their lands for the ensuing tax year on the basis of being actively devoted to agricultural or horticultural use, any such application which has been or shall be filed with the board of assessors after October first and not more than thirty days following the mailing of the tax bill containing the new valuation shall be deemed to have been timely made for the tax year of the revaluation program, notwithstanding any provision of this chapter to the contrary. If such application is approved and the lands qualify for valuation, assessment and taxation as lands actively devoted to agricultural, horticultural or agricultural and horticultural use in the ensuing tax year, that portion of any tax assessed for such year which is in excess of the tax which would have been assessed on such lands had such application been timely made and approved shall be abated.
Chapter 61A: Section 9. Allowance or disallowance of application for valuation; notice; liens Section 9. An application for valuation, assessment and taxation of land under the provisions of this chapter shall be allowed or disallowed by the board of assessors of the city or town in which such land is located within three months of the filing thereof. An application for valuation, assessment and taxation of land under the provisions of this chapter shall be disallowed by the board of assessors of the city or town in which such land is located if, in their judgment such land, in whole or in part, does not qualify thereunder. If any board of assessors shall determine that any application pursuant to this chapter is submitted for the purpose of evading payment of full and proper taxes, such board shall be and hereby is authorized to disallow such application. The failure of a board of assessors to allow or disallow any such application within three months following the filing thereof, shall be deemed an allowance of such application. The board of assessors shall, within ten days of an allowance, or disallowance, send written notice of such allowance, or disallowance, by certified mail to the landowner applicant and shall set forth therein the reason or reasons for disallowance together with a statement advising the landowner of his right to appeal therefrom as provided in section nineteen. In the case of a partial disallowance, the landowner shall be permitted to file an amendment to the original application.
With respect to the first application relating to a parcel of land which has been approved, and any subsequent such applications after a lapse of time when such land has not been valued, assessed and taxed under this chapter or after a change of record ownership of such land, the board of assessors shall forthwith cause to be recorded in the registry of deeds of the county or district in which the city or town is situated a statement of their action which shall constitute a lien upon the land covered by such application for such taxes as may be levied under the provisions of this chapter. The statement shall name the owner or owners of record and shall include a description of the land adequate for identification. Unless such a statement is recorded the lien shall not be effective with respect to a bona fide purchaser or other transferee without actual knowledge of such lien. Upon application by any record owner, such liens shall be released by the board of assessors with respect to any parcel of land as provided below in this section upon the applicable facts being established by their records or by affidavits or otherwise.
All liens for special assessments or betterment assessments under section eighteen shall be released in full or in part upon its being so established that any such assessment or portion of such assessment which have become due have been paid.
All liens for conveyance tax under section twelve, shall be released upon its being so established that no conveyance or change of use by the owner at the time of such release will result in a conveyance tax under said section twelve or that any such taxes which have become due have been paid.
All liens for roll-back taxes under section thirteen, other than roll-back taxes based on change of use after the date of such release, shall be released upon its being so established that no roll-back taxes have become due or that any such taxes which have become due have been paid.
The board of assessors shall also have the power and authority to release any such liens to correct any errors or omissions. Any release under this section shall be recorded with the registry of deeds.
When any land which has been valued, assessed and taxed under this chapter ceases to be so valued, assessed and taxed the board of assessors shall forthwith record in the registry of deeds a statement to that effect which shall include the name of the record owner or owners, the date when such land ceased to be so valued, assessed and taxed and a description of the land adequate for identification.
All recording fees paid pursuant to the provisions of this chapter whether for statements of liens, certificates, releases or otherwise shall be borne by the owner of record of the land.
Section 1. Land not less than five acres in area shall be deemed to be recreational land if it is retained in substantially a natural, wild, or open condition or in a landscaped condition in such a manner as to allow to a significant extent the preservation of wildlife and other natural resources, including but not limited to, ground or surface water resources, clean air, vegetation, rare or endangered species, geologic features, high quality soils, and scenic resources. Land not less than five acres in area shall also be deemed to be recreational land which is devoted primarily to recreational use and which does not materially interfere with the environmental benefits which are derived from said land, and is available to the general public or to members of a non-profit organization including a corporation organized under chapter one hundred and eighty.
For the purpose of this chapter, the term recreational use shall be limited to the following: hiking, camping, nature study and observation, boating, golfing, non-commercial youth soccer, horseback riding, hunting, fishing, skiing, swimming, picnicking, private non-commercial flying, including hang gliding, archery and target shooting.
Such recreational use shall not include horse racing, dog racing, or any sport normally undertaken in a stadium, gymnasium or similar structure.
dwellings or used for family living; taxation Section 10. All building located on land which is valued, assessed and taxed on the basis of its recreational use in accordance with the provisions of this chapter and all land occupied by a dwelling or regularly used for family living shall be valued, assessed and taxed by the same standards, methods and procedures as other taxable property.
Section 11. Continuance of land valuation, assessment and taxation under the provisions of this chapter shall depend upon continuance of such land in recreational use and compliance with other requirements of this chapter and not upon continuance in the same owner of title to such land. Liability to roll-back taxes, determined pursuant to section eight shall attach when such land no longer qualifies as recreational land actively and shall be the obligation of the then owner of the land. For purposes relating to roll-back taxes such qualification shall depend on the actual use of such land, and not on the filing of application under section three for any year.
Section 12. If, by conveyance or other action of the owner thereof, a portion of land which is valued, assessed and taxed under the provisions of this chapter is separated for a use which does not qualify as recreational land, the land so separated shall be subject to liability for conveyance or roll-back taxes applicable thereto, but such separation shall not impair the right of the remainder of such land to continuance of valuation, assessment and taxation thereunder; provided, however, that such remaining land continues to so qualify.
Section 13. Land qualifying for valuation, assessment and taxation under this chapter shall be subject to special assessments or betterment assessments to such pro rata extent as the service or facility financed by such assessment is used for improving the recreational use capability of said land or for the personal benefit of the owner thereof. Any such assessment may however, upon application, be suspended during the time the land is in classified recreational use; provided, however, that the interest thereon shall be paid annually.
etc.
; modification or abatement; appeals Section 14. The assessment, collection, apportionment and payment over of the roll-back taxes imposed by section eight shall be governed by the procedures provided for the assessment and taxation of omitted property under section seventy-five of chapter fifty-nine. Such procedures shall apply to each tax year for which roll-back taxes may be imposed notwithstanding the limitation set forth in said chapter fifty-nine with respect to the periods for which omitted property assessments may be imposed. Any person aggrieved by any determination or assessment by the board of assessors under this chapter may within sixty days of the date of notice thereof apply in writing to the assessors for modification or abatement thereof. Any person aggrieved by the refusal of the assessors to modify such a determination or make such an abatement or by their failure to act upon such an application may appeal to the appellate tax board within thirty days after the date of notice of their decision or within three months of the date of the application, whichever date is later. It shall be a condition of such appeal with respect to the annual general property tax that the asserted tax be paid, but no payment shall be required as a condition of such appeal with respect to any asserted conveyance tax or roll-back tax. If any payment of any tax imposed by this chapter should be made and as the result of any such modification or abatement by the board of assessors or decision by the appellate tax board it shall appear that any such tax has been overpaid, such excess payment shall be reimbursed by the town treasurer with interest at the rate of six per cent per annum from time of payment. Collection of any conveyance or roll-back taxes, by sale or taking or otherwise, may be stayed by the appellate tax board while any such appeal is pending. Any partial payment of the asserted tax that may be required by the appellate tax board in connection with such tax shall not exceed one-half of the asserted tax.
tax Section 15. In connection with any proposed or completed sale or other transfer of any land which has been valued, assessed and taxed under the provisions of this chapter, the owner of record of the land may apply to the board of assessors for a certificate of the amount of conveyance tax and roll-back tax, if any, payable by reason of such sale or other transfer, or that no such tax is payable and stating the amount of any conveyance or roll-back taxes that are payable with respect to such land. Such certificate shall be provided to the applicant within twenty days after application therefor. Such certificate may be recorded with the registry of deeds, and upon such recording of such a certificate become payable, or a certificate by the collector of taxes that the amount of tax stated in such certificate of the board of assessors has been paid, all liens on such land for taxes under this chapter shall terminate, except that any liens for any roll-back taxes assessed by reason of land ceasing to qualify for valuation, assessment and taxation under this chapter after the date of such sale or other transfer, shall continue. In connection with the issuance of such a certificate, the board of assessors may rely upon their own records, affidavits and such other information as they may deem appropriate. The board of assessors shall charge six dollars for each certificate so issued, and the money so received shall be paid into the town treasury.
Section 16. In determining the equalization required by section nine of chapter fifty-eight, the commissioner of revenue shall determine the value of such land on the basis of its recreational use.
required Section 17. The factual details to be shown on the tax list of a board of assessors with respect to land which is valued, assessed and taxed under this chapter shall be the same as those set forth by said board with respect to other taxable property in the same city or town.
Section 18. The commissioner of revenue shall promulgate such rules and regulations and shall prescribe the use of such forms and procedures as he deems appropriate to and consistent with effectuation of the purposes of this chapter.
Section 2. The value of land classified under the provisions of this chapter shall be determined under section thirty-eight of chapter fifty-nine solely on the basis of its use. The board of assessors shall assess such land at valuations based upon the guidelines established under the provisions of chapter fifty-eight, but in no event shall such valuation exceed twenty-five per cent of its fair cash value as determined pursuant to chapter fifty-nine.
The rate of tax applicable to such recreational land shall be the rate determined to be applicable to class three, commercial property under chapter fifty-nine.
Section 3. Eligibility of land for valuation, assessment and taxation under this chapter shall be determined separately for each tax year. Application therefor shall be submitted to the board of assessors of each city or town in which such land is situated not later than October first of the year preceding each tax year for which such valuation, assessment and taxation is being sought. Application shall be made on a form prescribed by the commissioner of revenue and provided for the use of applicants by said board of assessors. Such form shall provide for the reporting of information pertinent to the provisions of this chapter and for certification by the applicant that he will immediately notify the board of assessors in writing of any subsequent circumstance within his control or knowledge which may cause a change in use of the land covered by such form prior to October first next following. Any application submitted under this section and covering leased land shall be accompanied by a written statement signed by the lessee of his intent to use such land for the purposes set forth in said application. A certification by a landowner that the information set forth in his application is true may be prescribed by said commissioner to be in lieu of a sworn statement to that effect. An application so certified shall be considered as if made under oath and subject to the same penalties as provided by law for perjury.
Section 4. If a change in use of land maintained as recreational land as defined in section one occurs between October first and December thirty-first of the year preceding the tax year, the board of assessors shall disallow or nullify the application filed under authority of section three, and, after examination and inquiry, shall determine the full and fair value of said land under the valuation standard applicable to other land and shall assess the same according to such value. If, notwithstanding such change of use, the land is valued, assessed and taxed under the provisions of this chapter in the ensuing year, upon notice thereof said board shall enter an assessment and the amount of the increased tax resulting from such assessment, as an added assessment and tax against such land, for the particular year involved in the manner prescribed in section seventy-five of chapter fifty-nine. The amount of the added assessment shall be equal to the difference, if any, between the assessment imposed under this chapter and the assessment which would have been imposed had the land been valued and assessed as other land. The enforcement and collection of additional taxes resulting from any additional assessment so imposed shall be as provided by said chapters fifty-nine and sixty.
recreational classification Section 5. In any city or town in which a program of revaluation of all property therein has been or shall be undertaken and completed in time to be reflected in the assessments for the next succeeding tax year but not in sufficient time to permit landowners to make application prior to October first of the year preceding the tax year for the valuation, assessment and taxation of their lands for the ensuing tax year on the basis of being maintained in recreational use, any such application filed with the board of assessors after October first and not more than thirty days following the mailing of the tax bill containing the new valuation shall be deemed to have been timely made for the tax year of the revaluation program, notwithstanding any provision of this chapter to the contrary. If such application is approved and the lands qualify for valuation, assessment and taxation as lands maintained for recreational use in the ensuing tax year, the portion of any tax assessed for such year which is in excess of the tax which would have been assessed on such lands had such application been timely made and approved shall be abated.
records; liens Section 6. An application for valuation, assessment and taxation of land under the provisions of this chapter shall be allowed or disallowed by the board of assessors of the city or town in which such land is located within three months of the filing thereof. An application for valuation, assessment and taxation of land under the provisions of this chapter shall be disallowed by the board of assessors of the city or town in which such land is located if, in their judgment such land, in whole or in part, does not qualify thereunder. If any board of assessors shall determine that any such application is submitted for the purpose of evading payment of full and proper taxes, such board shall disallow such application. The failure of a board of assessors to allow or disallow any such application within three months following the filing thereof, shall be deemed a disallowance of such application. The board of assessors shall, within ten days of an allowance, or disallowance, send written notice of such allowance, or disallowance, by certified mail to the applicant and shall set forth therein the reason or reasons for disallowance together with a statement advising the applicant of his right to appeal therefrom as provided in section fourteen. In the case of a partial disallowance, the applicant shall be permitted to file an amendment to the original application.
With respect to the first application relating to a parcel of land which has been approved, and any subsequent such applications after a lapse of time when such land has not been valued, assessed and taxed under this chapter or after a change of record ownership of such land, the board of assessors shall forthwith cause to be recorded in the registry of deeds of the county or district in which the city or town is situated a statement of their action which shall constitute a lien upon the land covered by such application for such taxes as may be levied under the provisions of this chapter. The statement shall name the owner or owners of record and shall include a description of the land adequate for identification. Unless such a statement is recorded the lien shall not be effective with respect to a bona fide purchaser or other transferee without actual knowledge of such lien. Upon application of any record owner, such liens shall be released by the board of assessors with respect to any parcel of land as hereinafter provided upon the applicable facts being established by records, affidavits or otherwise.
All liens for conveyance tax under section seven shall be released upon its being established that no conveyance or change of use by the owner at the time of such release will result in a conveyance tax under said section seven or that any such taxes which have become due have been paid.
All liens for roll-back taxes under section eight, other than roll-back taxes based on change of use after the date of such release, shall be released upon its being so established that no roll-back taxes have become due or that any such taxes which have become due have been paid.
The board of assessors shall also have the power and authority to release any such liens to correct any errors or omissions. Any release under this section shall be recorded with the registry of deeds.
When any land which has been valued, assessed and taxed under this chapter ceases to be so valued, assessed and taxed the board of assessors shall forthwith record in the said registry of deeds a statement to that effect which shall include the name of the record owner or owners, the date when such land ceased to be so valued, assessed and taxed and a description of the land adequate for identification.
nonexempt transfers Section 7. Any recreational land which is valued, assessed and taxed under the provisions of this chapter, if sold for other use within a period of ten years from the beginning of the fiscal year in which it was first so classified shall be subject to a conveyance tax applicable to the total sales price of such land, which tax shall be in addition to such taxes as may be imposed under any other provision of law. Said conveyance tax shall be at the following rate: ten per cent if sold within the first five years of its being first so classified; and, five per cent if sold within the sixth through tenth year of its being first so classified. No conveyance tax shall be imposed under the provisions of this section following the end of the tenth year of its being first so classified. Said conveyance tax shall be due and payable by the grantor at the time of transfer of the property by deed or other instrument of conveyance and shall be payable to the tax collector of the city or town in which the property is entered upon the tax list; provided, however, that in the case of taking by eminent domain, the value of the property taken shall be determined in accordance with the provisions of chapter seventy-nine and the amount of conveyance tax, if any, shall be added thereto as an added value; and, provided, further, that if there is filed with the board of assessors an affidavit by the purchaser that such land is being purchased for recreational use, no conveyance tax shall be payable by the seller by reason of such sale, but if such land is not in fact continued in such use, the purchaser shall be liable for any conveyance tax that would have been payable on such sale as a sale for other use.
A nonexempt transfer subsequent to any exempt transfer or transfers shall be subject to the provisions of this section. Upon such nonexempt transfer the date of acquisition by the grantor, for purposes of this section, shall be deemed to be the date of the last preceding transfer not excluded by the foregoing provisions from application of this section; except that in the case of transfer by a grantor who has acquired the property from a foreclosing mortgagee the date of acquisition shall be deemed to be the date of such acquisition. If any tax imposed under this section should not be paid, the collector of taxes shall have the same powers and be subject to the same duties with respect to such taxes as in the case of the annual taxes upon real estate. The law in regard to the collection of the annual taxes, to the sale of land for the nonpayment thereof and to redemption therefrom shall apply to such taxes, so far as the same are applicable. Any classified recreational land which is valued, assessed and taxed under the provisions of this chapter, if changed by the owner thereof to another use within a period of ten years from the date of its classification for recreational use by said owner, shall be subject to the conveyance tax applicable hereunder at the time of such change in use as if there had been an actual conveyance, and the value of such land for the purpose of determining a total sales price shall be fair market value as determined by the board of assessors of the city or town involved for all other property.
Section 8. Whenever land which is valued, assessed and taxed under this chapter no longer qualifies as classified recreational land it shall be subject to additional taxes, hereunder referred to as roll-back taxes, in the current tax year in which it is disqualified and in such of the nine immediately preceding tax years in which the land was so valued, assessed and taxed; provided, however, that such roll-back taxes shall not be applicable unless the amount thereof as computed pursuant to this section, exceeds the amount, if any, imposed under the provisions of section seven and, in such case, the land shall not be subject to the conveyance tax imposed under said section seven; and provided, further, that no roll-back taxes shall be applicable if the land involved is purchased for a public purpose by the city or town in which it is situated. For each year, the roll-back tax shall be an amount equal to the difference, if any, between the taxes paid or payable in accordance with the provisions of this chapter and the taxes that would have been paid or payable had the land been valued, assessed and taxed without regard to such provisions. If, at the time during a tax year when a change in land use has occurred, the land was not then valued, assessed and taxed under the provisions of this chapter, then such land shall be subject to roll-back taxes only for such of the ten immediately preceding years in which the land was valued, assessed and taxed thereunder. In determining the amount of roll-back taxes on land which has undergone a change in use, the board of assessors shall have ascertained the following for each of the roll-back tax years involved:(a) the full and fair value of such land under the valuation standard applicable to other land in the city or town;(b) the amount of the land assessment for the particular tax year;(c) the amount of the additional assessment on the land for the particular tax year by deducting the amount of the actual assessment on the land for that year from the amount of the land assessment determined under clause (a); and,(d) the amount of the roll-back tax for that tax year by multiplying the amount of the additional assessment determined under clause (c) by the general property tax rate of the city or town applicable for that tax year.
Interest on roll-back taxes shall be payable, and shall be computed at the rate of interest provided by section fifty-seven of chapter fifty-nine over the period of the tax roll-back.
use Section 9. Land which is valued, assessed and taxed on the basis of its recreational use under an application filed and approved pursuant to this chapter shall not be sold for or converted to residential, industrial or commercial use while so valued, assessed and taxed unless the city or town in which such land is located has been notified of intent to sell for or convert to such other use provided, however, that the discontinuance of the use of such land for recreational purposes shall not be deemed a conversion. Specific use of land for a residence for the owner or his spouse or a parent, grandparent, child, grandchild, or brother or sister of the owner, or the surviving husband or wife of any deceased such relative, or for living quarters for any persons actively employed full time in the recreational use of such land, shall not be deemed to be a conversion for purposes of this section; and a certificate of the board of assessors, recorded with the registry of deeds, shall conclusively establish that a particular use is such a use. For a period one hundred and twenty days subsequent to such notification, said city or town shall have, in the case of intended sale, a first refusal option to meet a bona fide offer to purchase said land, or, in the case of intended conversion not involving sale, an option to purchase said land at full and fair market value to be determined by impartial appraisal. After a public hearing, said city or town may assign either of such options to a nonprofit conservation organization under such terms and conditions as the mayor or board of selectmen deem appropriate. Such assignment shall be for the purpose of maintaining the major portion of the property subject to this assignment in uses specified in section one. Notice of such public hearing shall be given in accordance with the provisions of section twenty-three B of chapter thirty-nine. Such notice of intent shall be sent by the landowner via certified mail to the major and city council of a city, or to the board of selectmen of a town, to its board of assessors and to its planning board and conservation commission, if any, and said option period shall run from the day following the latest date of deposit of any such notices in the United States mails. No sale or conversion of such land shall be consummated unless and until either said option period shall have expired or the landowner shall have been notified in writing by the mayor or board of selectmen of the city or town in question that said option will not be exercised. Such option may be exercised only by written notice signed by the mayor or board of selectmen, mailed to the landowner by certified mail at such address as may be specified in his notice of intention and recorded with the registry of deeds, within the option period. If either option has been assigned to a nonprofit conservation organization as provided in this section, such written notice shall state the name and address of said organization and the terms and conditions of such assignment. An affidavit by a notary public that he has so mailed such a notice of intent on behalf of a landowner shall conclusively establish the manner and time of the giving of such notice; and such an affidavit, and such a notice that the option will not be exercised, shall be recorded with the registry of deeds. Each such notice of intention, notice of exercise of the option and notice that the option will not be exercised shall contain the name of the record owner of the land and a description of the premises so to be sold or converted adequate for identification thereof; and each such affidavit by a notary public shall have attached to it a copy of the notice of intention to which it relates. Such notices of intention shall be deemed to have been duly mailed to the parties above specified if addressed to them in care of the town or city clerk; and in the case of notice to a city council or a board or commission, addressed to it as such entity. The provisions of this section shall not be applicable with respect to a mortgage foreclosure sale; but the holder of a mortgage shall, at least ninety days before a foreclosure sale, send written notice of the time and place of such sale to the parties and in the manner above provided in this section for notice of intent to sell or convert, and the giving of such notice may be established by an affidavit of a notary public as above set forth.
Chapter 62: Section 1. Definitions Section 1. When used in this chapter the following words or terms shall, unless the context indicates otherwise, have the following meanings:—(a) “Commissioner”, the commissioner of revenue.
[There is no paragraph (b).
] (c) “Code”, the Internal Revenue Code of the United States, as amended on January 1, 1998 and in effect for the taxable year; provided, however, that Code shall mean the Code as amended and in effect for the taxable year for sections 62(a)(1), 72, 274(m), 274(n), 401 through 420, inclusive, 457, 529, 530, 3401 and 3405 but excluding sections 402A and 408(q).
(d) “Federal gross income”, gross income as defined under the Code.
(e) “Dividend”, any item of federal gross income which is treated as a dividend under the provisions of the Code.
(f) “Resident” or “inhabitant”, (1) any natural person domiciled in the commonwealth, or (2) any natural person who is not domiciled in the commonwealth but who maintains a permanent place of abode in the commonwealth and spends in the aggregate more than one hundred eighty-three days of the taxable year in the commonwealth, including days spent partially in and partially out of the commonwealth. For purposes of clause (2), a day spent in the commonwealth while on active duty in the armed forces of the United States shall not be counted as a day in the commonwealth. The word “non-resident” shall mean any natural person who is not a resident or inhabitant.
(g) The determination of whether the taxpayer is married shall be made as of the close of his taxable year, except that if his spouse dies during his taxable year such determination shall be made as of the time of such death. An individual legally separated from his spouse under a decree of divorce or of separate maintenance shall not be considered as married.
(h) “Taxable year” shall have the same meaning as in the Code, except as otherwise provided in section sixty-two of this chapter.
(i) “Interest” shall have the same meaning as in section one hundred and sixty-three of the Code, including all amounts treated as interest by virtue of the operation of any other sections of the Code, including, without limitation, section four hundred and eighty-three of the Code, and including any amount required to be included currently in income under section four hundred and fifty-four or one thousand two hundred and thirty-two (a)(3) of the Code.
(j) “Corporate trust”, any partnership, association or trust, the beneficial interest of which is represented by transferable shares.
[There is no paragraph (k).
] (l) “Trade or business” shall have the same meaning as in section sixty-two of the Code.
(m) The term “capital asset” shall have the meaning as given in section one thousand two hundred and twenty-one of the Code and shall be limited to assets which are sold, exchanged or otherwise disposed of by a person while he is subject to taxation under this chapter on any Part A or Part C taxable income; provided, further, that property used in a trade or business within the meaning of section one thousand two hundred and thirty-one (b) of the Code, without regard to the holding period requirement in said section, and property held in connection with a trade or business or transaction entered into for profit within the meaning of section one thousand two hundred and thirty-one (a)(3)(A)(ii)(II) of the Code, without regard to the holding period requirement in said section, shall be treated as if such property were a “capital asset” within the meaning of section one thousand two hundred and twenty-one of the Code.
The term “capital gain income” shall mean gain from the sale or exchange of a capital asset. The terms “short-term capital gain”, “short-term capital loss”, “long-term capital gain”, “long-term capital loss”, “net short-term capital gain”, “net short-term capital loss”, “net long-term capital gain” and “net long-term capital loss” shall have the meanings as provided in section 1222 of the Code, as amended and in effect for the taxable year. In determining the amount of gain or loss on any sale, exchange or other disposition of property, section 6F shall be taken into account and in determining the amount of long-term capital loss or short-term capital loss for any year, clause (2) of subsection (c) of section 2 shall be taken into account; provided, however, that losses from the sale or exchange of capital assets shall not include any item the deduction of which is or, but for some other section, would be prohibited by section 165(c), section 262 or section 267 of the Code.
(n) “Baseline tax revenues”, the amount of state tax revenues that would have been credited to the budgeted funds had there been no change in federal or state tax law or administrative practices that affected tax collections for the year, as estimated by the commissioner.
(o) “Inflation adjusted change in baseline tax revenues”, the commissioner’s estimate of the percentage change from the preceding fiscal year in the amount of baseline tax revenues minus the percentage change in the consumer price index for all urban consumers for Boston as most recently reported by the federal Bureau of Labor Statistics, from the index so reported 12 months before. The estimate shall be provided to the secretary of administration, the house and senate committees on ways and means and the joint committee on taxation annually, on or before August 30 for the preceding fiscal year. Monthly, on or before the fifteenth day, the commissioner shall provide an estimate for the preceding 3 months to the same recipients.
Chapter 62: Section 10. Income from trust estates; deductions Section 10. The income received by trustees or other fiduciaries shall be taxed in the following manner:(a) The income received by trustees or other fiduciaries described in subsection (c) of this section shall be subject to the taxes imposed by this chapter to the extent that the persons to whom the same is payable, or for whose benefit it is accumulated, are inhabitants of the commonwealth; provided, however, if the income received by such trustees or other fiduciaries would be subject to taxation under section five A if received by a nonresident, such income shall be taxable regardless of whether the persons to whom the income from the trust is payable or for whose benefit it is accumulated are residents or nonresidents of the commonwealth. Income received by trustees or other fiduciaries described in subsection (c) of this section which is accumulated for unborn or unascertained persons, or persons with uncertain interests shall be taxed as if accumulated for the benefit of a known inhabitant of the commonwealth.
For the purposes of this section and of section nine income shall be deemed to be accumulated for unborn or unascertained persons or persons with uncertain interests when thus accumulated by estates, by trustees or other fiduciaries, who are subject to the provisions of this section or of section nine, for the benefit of any future interest other than a remainder presently vested in a person or persons in being not subject to be divested by the happening of any contingency expressly mentioned in the instrument creating the trust.
No person shall be taxed under this chapter for income received from any trustee or other fiduciary, which income has itself been taxed under this section.
(b) In addition to the deductions allowable under other sections of this chapter, trustees or other fiduciaries may deduct (1) from the income taxable under subsection (a) of section four a proper amount for the amortization, according to any approved method, of premiums paid upon bonds owned by them, the income of which is taxable under said subsection (a), and (2) from income taxable under subsection (a) of section four before the income of the beneficiaries shall finally be determined:—(A) such proportion of the following items paid within the year as the amounts of income taxable under said subsection bear to the total income received by the fiduciary from all sources, exclusive of income taxable under subsection (b) of section four:— (i) amounts paid for rental of safe deposit boxes; and (ii) amounts paid for premiums on surety bonds of the fiduciary; and (B) the compensation actually paid during the year to the fiduciary upon such income taxable under subsection (a) of section four as is payable to or accumulated for inhabitants of the commonwealth, or for unborn or unascertained persons with uncertain interests, to an amount not exceeding seven per cent of such income subject to taxation.
(c) The provisions of subsections (a) and (b) of this section shall apply to guardians and conservators; trustees and executors under the will of a person who died an inhabitant of the commonwealth; and trustees under a trust created by a person or persons, any one of whom was an inhabitant of the commonwealth at the time of the creation of the trust or at any time during the year for which the income is computed, or who died an inhabitant of the commonwealth, any one of which trustees or other fiduciaries is an inhabitant of the commonwealth; provided, however, that said provisions shall not apply to trustees of pooled income funds, as defined in section six hundred and forty-two (c)(5) of the Code, or to trustees of charitable remainder annuity trusts or charitable remainder unitrusts, as defined in section six hundred and sixty-four (d) of the Code.
(d) Income received by estates held in trust by trustees or other fiduciaries, other than the trustees and fiduciaries described in subsection (c) of this section, which income would be subject to taxation under section five A if received by a nonresident, shall be taxed at the same rate and in the same manner as is provided in section five A, and subject to the same exemptions and deductions.
(e) If the grantor or another person is treated as the owner of any portion of a trust by reason of the provisions of section six hundred and seventy-one to six hundred and seventy-eight, inclusive, of the federal Internal Revenue Code, the items of income, deduction and credits against tax which are attributable to that portion of the trust shall not be taken into account in calculating the income taxable to the trust but shall be taken into account in computing the taxable income or credits against the tax of such grantor or other person under section two.
(f) A trustee or other fiduciary receiving income taxable to a grantor or another person as owner shall file with its return of income a schedule indicating the items of income, deductions and credits against tax attributable to such portion of the trust and the name and taxpayer identification number of the person treated as owner.
[ Paragraphs (g), (h), (i), and (j) applicable to tax years beginning on or after January 1, 2005. See 2004, 262, Sec. 72.
] (g) A trustee or other fiduciary having control of the payment to a nonresident of the commonwealth, who is a grantor or other person within the meaning of section six hundred and seventy-one of the code or who is a beneficiary receiving income included in gross income under subsection (h), of any Part A income, Part B income or Part C income subject to the taxes imposed by this chapter, shall deduct and withhold from such income a tax at the rate applicable to income of that class. The tax so withheld shall not reduce the amount of income taxable to a nonresident but shall be included in his return of income and shall be credited against the amount of income tax as computed in such return.
(h) A trustee or other fiduciary receiving income included in the gross income of a beneficiary by reason of section 652 or 662 of the Code shall be allowed a deduction in computing the taxable income of the trust for that portion of Part A, Part B or Part C income attributable to such beneficiary, and the income shall be included in the gross income of such beneficiary. The amount of the deduction for the trust and the amount of the income inclusion for the beneficiary shall be adjusted to account for the difference between the calculation of federal taxable income under the Code and the calculation of Massachusetts taxable income under this chapter.
(i) A trustee or other fiduciary receiving income taxable to a beneficiary under subsection (h) shall file with his return of income a form, to be specified by the commissioner, indicating the items of income attributable to such beneficiary and the name and taxpayer identification number of the beneficiary and such other information as the commissioner deems necessary.
(j) Upon determination by the commissioner of noncompliance by a beneficiary with the tax laws of the commonwealth including, but not limited to, the timely filing of accurate returns and payments of amounts due, subsections (h) and (i) shall not apply.
Chapter 62: Section 10A. Qualified funeral trusts Section 10A. A qualified funeral trust shall have the same meaning as in the Code, as amended, on January 1, 1998, effective for taxable years ending on or after August 5, 1997.
Chapter 62: Section 11. Income received from nonresident trustee Section 11. Any inhabitant of the commonwealth who receives, is entitled to, or to whom income is available from one or more trustees or other fiduciaries who are not subject to taxation under this chapter, shall be subject to the taxes imposed by this chapter upon such income according to the nature of the income received by such trustees, or other fiduciaries, and shall include such income in a return as required by section six of chapter sixty-two C. Amounts distributed by a charitable remainder annuity trust or a charitable remainder unitrust, as defined in section six hundred and sixty-four of the Code, shall, for the purposes of taxation under this chapter, be considered as having in the hands of the recipients thereof the characteristics described in subsection (b) of said section six hundred and sixty-four.
Chapter 62: Section 11A. Income from pooled income funds and charitable remainder annuity trusts or unitrusts; deduction and withholding Section 11A. Every trustee of a pooled income fund, as defined in section six hundred and forty-two (c)(5) of the Code, and every trustee of a charitable remainder annuity trust or a charitable remainder unitrust, as defined in section six hundred and sixty-four (d) of the Code, who is an inhabitant of the commonwealth and who makes payment to a beneficiary who is an inhabitant of the commonwealth of income subject to the taxes imposed by this chapter shall deduct and withhold tax upon such income at the rate or rates applicable under the provisions of this chapter to the class or classes of income so paid. The amount deducted and withheld as tax, as provided herein, shall be allowed as a credit to the beneficiary entitled to the income against the tax imposed thereon.
Chapter 62: Section 11B. Pooled income funds and charitable remainder annuity trusts or unitrusts; returns, declarations of estimated tax and payments; liability Section 11B. Every trustee who is required to deduct and withhold taxes under section eleven A shall make returns, including declarations of estimated tax, and payments with respect to such taxes in like manner as if the taxes were imposed with respect to income received by the trustee. All provisions of chapter sixty-two C with respect to the assessment, collection and abatement of taxes, interest and penalties which are applicable to trustees subject to tax under section ten shall be applicable to trustees who are required to deduct and withhold taxes under section eleven A; provided, however, that if a trustee who is required to deduct and withhold taxes under section eleven A fails to make payment thereof to the commonwealth, and thereafter the tax against which such withheld tax may be credited is paid, the tax so required to be deducted and withheld to the extent of such payment shall not be collected from the trustee, but this proviso shall in no case relieve the trustee from liability for any penalties or addition to tax otherwise applicable in respect of such failure to make payment.
Chapter 62: Section 12, 12A. Repealed, 2004, 262, Sec. 16 Chapter 62: Section 13. Application of sections to all fiduciaries [Text of section applicable to tax years beginning on or after January 1, 2005. See 2004, 262, Sec. 72.
] Section 13. Sections 10 and 11 shall so far as apt, apply to executors, administrators, guardians, conservators, trustees in bankruptcy, receivers and assignees for the benefit of creditors, to the income received by them and to their beneficiaries. All such fiduciaries and their successors in office shall be personally liable for all taxes due under this chapter from them or from their predecessors in office to the value of all property in their hands as such fiduciaries at the time of distribution as provided in section six of chapter sixty-two C.
Chapter 62: Section 14. Applicability to corporate trustees Section 14. Corporations acting as trustee or in any other fiduciary capacity shall, with respect to the income received by them in that capacity, be subject to this chapter in the same manner and under the same conditions as individual inhabitants of the commonwealth acting in similar capacities, except that no such corporation shall be taxed on account of any property the income of which would be taxable if received by an individual inhabitant, or on account of the income derived from such property, if such property is held by such corporation as mortgagee or pledge to secure the payment of bonds, notes or other evidences of indebtedness the interest on which is subject to taxation to such individual inhabitants of the commonwealth as received it, or the principal of which is exempt from taxation under laws other than this chapter.
Chapter 62: Section 15. Duties of corporate trustees Section 15. Every corporation liable to taxation under the preceding section shall make the returns prescribed by section six of chapter sixty-two C and shall be subject to the penalties imposed by said chapter.
Chapter 62: Section 16. Agreement as to total tax due from trustees Section 16. For the purpose of facilitating the settlement and distribution of estates held by trustees and the other fiduciaries named in section thirteen, the commissioner may on behalf of the commonwealth agree on the amount of taxes at any time due or to become due from such estates under this chapter, and payment in accordance with such agreement shall be full satisfaction of the taxes to which the agreement relates.
Chapter 62: Section 17. Partners subject to tax; distributive shares; partners’ separate returns; determination of income; common trust funds [Introductory paragraph effective for tax years beginning on or after January 1, 2003. See 2003, 4, Sec. 86.
] Section 17. A partnership as such shall not be subject to the taxes imposed by this chapter. Individuals carrying on business as partners shall be liable for the taxes imposed by this chapter only in their separate or individual capacities. A limited liability company formed under chapter one hundred and fifty-six C or a foreign limited liability company as defined in section two of chapter one hundred and fifty-six C shall be deemed to be a partnership if it is classified for the taxable year as a partnership for federal income tax purposes. If a limited liability company has only 1 member and is not treated as a separate taxable entity for federal tax purposes, it shall not be separately taxed under this chapter and such member shall include separately in his return the limited liability company’s income or loss taxable under this chapter and any item of deduction or credit.
(a) An inhabitant of the commonwealth who is a member of a partnership, whether or not such partnership has a usual place of business in the commonwealth, shall be subject to the taxes imposed by this chapter on his distributive share of the income received or earned by the partnership from sources taxable under this chapter. He shall include separately in his return his distributive share of the partnership’s income or loss from sources taxable under this chapter and of any item of deduction or credit.
[Paragraph (b) applicable to tax years beginning on or after January 1, 2005. See 2004, 262, Sec. 72.
] (b) A nonresident of the commonwealth who is a member of a partnership that is engaged in the conduct of a trade or business in the commonwealth or that owns or leases real property in the commonwealth, except a nonresident limited partner of a limited partnership engaged exclusively in buying, selling, dealing in or holding securities on its own behalf and not as a broker, shall be subject to the taxes imposed by this chapter on his distributive share of the income received or earned by the partnership from sources taxable under this chapter. He shall include separately in his return his distributive share of such income or loss and of any item of deduction or credit.
(c) The character of any item of income, loss, deduction or credit included in a partner’s distributive share shall be determined as if such item were realized directly by the partner from the source from which realized by the partnership or incurred in the same manner as incurred by the partnership. The amount of each such item to be taken into account by the partnership in determining the total of its income, loss, deductions or credits to be reported in the returns of its partners shall be computed in the same manner as in the case of an individual except that the following shall not be allowed to the partnership:—(1) The offset of Part A losses against interest and dividends provided in paragraph 2 of subsection (c) of section 2; the deduction allowed under paragraph (3) of subsection (c) of section 2; and the credits allowed under subsection (c) of section 4; (2) the exemptions provided in section five and clauses one, two, three, and four of paragraph (b) of subsection B of section three; (3) the credit for taxes provided in subsection (a) of section six to the extent that such taxes are assessed to the partners in their individual capacities, but such credit shall be allowed to the partners in their individual returns, and (4) the credits provided in subsection (b) of section six.
(d) A partner’s distributive share of any item of income, loss, deduction or credit shall be determined by the partnership agreement. If the partnership agreement contains no provision with respect to the partners’ distributive shares of any item of income, loss, deduction or credit, such item shall be apportioned in accordance with his ratio of sharing income or losses of the partnership. The partner’s distributive share of the various classes of income, losses, deductions and credits shall be included by such partner in his return for his taxable year during which or with which the taxable year of the partnership ends.
(e) A common trust fund which qualifies as such under section five hundred and eighty-four of the Code shall be treated as a partnership for the purposes of taxation under this chapter. Such partnership shall compute all items of income, loss, deduction or credit without reference to any item of income, loss, deduction or credit of any participating account except that the provisions of section ten shall be applicable to such partnership. No loss of such partnership may be allocated to any participating account but such loss may be used by the partnership as provided in clause (3) of subsection (a) of section four. No participating account deriving income from other sources than such partnership may use any item of income, loss, deduction or credit from such other sources to reduce any income derived from such partnership except as provided in sections twelve and twelve A.
For purposes of this chapter, in determining items of income, basis, gain or loss with respect to a common trust fund or its participants involved in a transaction described in section 584(h) of the Internal Revenue Code, the provisions of said section 584(h) shall apply as though incorporated herein. For purposes of the preceding sentence, “Internal Revenue Code” shall mean the Internal Revenue Code of the United States as amended and in effect on August 21, 1996.
Chapter 62: Section 17A. Taxation of shareholders of S corporations Section 17A. (a) An inhabitant of the commonwealth who is a shareholder of an S corporation, as defined under section thirteen hundred and sixty-one of the Code and whether or not such S corporation is subject to tax under chapter sixty-three, shall be subject to the taxes imposed by this chapter on his distributive share of the corporation’s items of income, loss or deduction, as provided under subchapter S of the Code, for the shareholder’s taxable year in which the taxable year of the S corporation ends, or for the final taxable year of a shareholder who dies before the end of the corporation’s taxable year; provided, however, such items of income, loss or deduction are taxable or available to the shareholder under the provisions of chapter sixty-two if realized or incurred directly by the shareholder. He shall include separately in his return his distributive share of the S corporation’s income or loss from sources taxable under this chapter and of any item of deduction or credit, including the taxpayer’s pro rata share of any tax upon income paid by the S corporation and otherwise allowable as a credit under subsection (a) of section six. Credits under section thirty-one A or thirty-eight E of chapter sixty-three shall not be allowed hereunder.
(b) A nonresident of the commonwealth who is a shareholder of an S corporation, as so defined, which is subject to tax under chapter sixty-three shall be subject to the tax imposed by section five A on his distributive share of the income realized by the S corporation as would be subject to taxation under section five A if realized by a nonresident. Where the S corporation does business both within and without the commonwealth, the income derived from business carried on within the commonwealth shall be determined under the provisions of section thirty-eight and forty-two of chapter sixty-three. The shareholder shall include separately in his return his distributive share of such income or loss and of any item of deduction or credit relating thereto.
(c) The character of any item of income, loss, deduction or credit included in a shareholder’s distributive share shall be determined as if such item were realized or incurred directly by the shareholder from the source from which realized by the corporation or incurred in the same manner as incurred by the corporation. Such determinations shall be made under the provisions of chapter sixty-two and of the Code applicable to the shareholders of the S corporation.
(d) Notwithstanding any other provision of this chapter, where a corporation has elected to be an S corporation for federal income tax purposes prior to the effective date of this section, and the basis of such corporation’s stock or indebtedness has been adjusted for federal income tax purposes under the provisions of Subchapter S of the Code for S corporation taxable years commencing before nineteen hundred and eighty-six, then such adjustments, limited to the extent they are applicable in determining the basis for the corporation’s shareholders as of the last day of the last S corporation taxable year commencing before nineteen hundred and eighty-six, will be modifications to the gain or loss recognized under this chapter on the sale or exchange of such stock or indebtedness. Net positive basis adjustments will reduce the shareholder’s federal basis in such corporation’s stock. Net negative basis adjustments will increase the shareholders federal basis in such corporation’s stock. If stock or indebtedness is transferred and the basis to the transferee is determined by reference to the basis of the transferor, then the modifications made by this section will continue to apply to the transferee.
(e) The provisions of this section shall not apply to shareholders of an S corporation which is subject to taxation as a corporate trust under this chapter.
Chapter 62: Section 18. Repealed, 1976, 415, Sec. 100 Chapter 62: Section 19. Inapplicability of certain sections to corporate trusts Section 19. Section seventeen of this chapter and section seven of chapter sixty-two C shall not apply to corporate trusts, and nothing in said sections shall affect other provisions of this chapter so far as the same relate to such corporate trusts.
Chapter 62: Section 2. Gross income, adjusted gross income and taxable income defined; classes Section 2. (a) Massachusetts gross income shall mean the federal gross income, modified as required by section six F, with the following further modifications:—(1) The items to be added thereto are:—(A) Interest on governmental obligations excluded under section one hundred and three of the Code, other than interest from any such obligation issued by the commonwealth, any political subdivision thereof, or any agency or instrumentality of either of the foregoing, which is exempt from taxation under any provision of law.
[There is no subparagraph (B).
] (C) Earned income from foreign sources excluded under section nine hundred and eleven of the Code.
[There is no subparagraph (D).
] (E) Amounts excluded under Subchapter S of the Code with respect to a federal S corporation which is subject to taxation under this chapter as a corporate trust.
(F) Amounts included in or considered to be Massachusetts gross income under any other provision of this chapter.
(G) Amounts excluded under section one hundred and twenty-eight of the Code.
[There is no subparagraph (H).
] (I) Amounts contributed on behalf of the taxpayer pursuant to subdivision (10) of section twenty-two of chapter thirty-two or pursuant to paragraph (i) of section sixty-five D of said chapter thirty-two or pursuant to section forty of chapter fifteen A and not included in the federal gross income; provided, however, that nothing herein shall be deemed to impair the status for tax purposes of any such amount as provided under section nineteen of chapter thirty-two, or subparagraph (4) of paragraph (a) of Part B of section three of chapter sixty-two.
(2) The items to be deducted therefrom are:—(A) Interest on obligations of the United States exempt from state income taxation to the extent included in federal gross income, and dividends received from a regulated investment company qualified under section eight hundred and fifty-one of the Federal Internal Revenue Code to the extent such dividends are attributable to interest on obligations of the United States exempt from state income taxation and are so identified in a written notice mailed to the shareholders of such regulated investment company not later than sixty days after the close of its tax year.
(B) Amounts included under Subchapter S of the Code with respect to a federal S corporation which is subject to taxation under this chapter as a corporate trust.
(C) Income received from any trustee or other fiduciary, which income is taxable under this chapter to the trustee or other fiduciary.
(D) Dividends received from a corporate trust subject to taxation under this chapter to the extent that such dividends are exempt from taxation under section eight of this chapter.
(E) Income from any contributory annuity, pension, endowment or retirement fund of the United States government or the commonwealth or any political subdivision thereof including the optional retirement system established by section forty of chapter fifteen A, to which the employee has contributed, or any income received from the United States government as retirement pay for a retired member of the Uniformed Services of the United States, as defined in 10 U.
S.
C. section 1072, regardless of whether the retiree contributed to the retirement system, or any income received from the United States government as survivorship benefits under 10 U.
S.
C. sections 1431 to 1460, inclusive.
(F) Income from annuity, stock bonus, pension, profit-sharing, annuity or deferred-payment plans or contracts described in sections four hundred and three (b) or four hundred and four of the Code or individual retirement accounts, individual retirement annuities or retirement bonds described in sections four hundred and eight or four hundred and nine of the Code, until an aggregate amount of such income has been deducted under this subparagraph equal to the aggregate of all amounts previously subjected to taxation under this chapter; provided, that this subparagraph shall not apply to income from the optional retirement system established by section forty of chapter fifteen A.
(G) The commissioner of energy resources may approve United States patents, which have been issued to Massachusetts residents or applied for by Massachusetts residents as useful for energy conservation and related purposes or as useful for alternative energy development and related purposes, provided that such patents are determined by said commissioner to be of economic value, practicable, and necessary for the convenience and welfare of the Commonwealth and its citizens. Any income received from the sale, lease or other transfer of a patent so approved by the commissioner of energy resources, including royalty income, and any income received from the sale, lease, or other transfer of tangible, intangible, personal or real property or materials manufactured in the Commonwealth subject to such patent shall be deducted. Said deduction shall extend for a period no longer than 5 years from the date of issuance of the United States patent or the date of approval by the commissioner of energy resources, whichever first expires.
(H) Social security benefits included in federal gross income under section eighty-six of the Code.
(I) Dividends received from a regulated investment company qualified under section eight hundred and fifty-one of the Federal Internal Revenue Code which are exempt interest dividends under section eight hundred and fifty-two of said Code but only to the extent of the portion of such exempt interest dividends directly attributable to interest from obligations issued by the commonwealth, any political subdivision thereof, or any agency or instrumentality of either of the foregoing, that is exempt from taxation under any provision of law, and provided that such portion is identified in a written notice mailed to the shareholders of such regulated investment company not later than sixty days after the close of its tax year.
(J) Dividends received from a regulated investment company qualified under section eight hundred and fifty-one of the code which are capital gain dividends under section eight hundred and fifty-two of said Code but only to the extent of the portion of such capital gain dividends attributable to gain from obligations issued by the commonwealth, any political subdivision thereof, or any agency of instrumentality of either of the foregoing, that is exempt from taxation under any provision of law, and provided such portion is identified in a written notice to the shareholders of such regulated investment company not later than sixty days after the close of its tax year.
(K) The following items, to the extent included in federal gross income:(i) distributions or payments, including interest, if any, made to an individual because of his status as a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime or as an heir of such victim and(ii) income, attributable to, derived from or in any way related to assets stolen from, hidden from, or otherwise lost to Germany or any other Axis regime immediately prior to, during, and immediately after World War II, including but not limited to, payments of compensation or reparation, and interest on and the proceeds of insurance under policies issued to a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime by European insurance companies immediately prior to and during World War II; provided, however, this deduction from federal gross income shall not apply to assets acquired with such assets or with the proceeds from the sale of such assets; provided, further, this paragraph shall only apply to a taxpayer who was the first recipient of such assets after their recovery and who was a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime or as an heir of such a victim.
(L) Amounts, whether in a single sum or otherwise, paid by an employer by reason of the death of an employee who is a specified terrorist victim, as defined in section 25 of this chapter; provided, however, subject to such rules as the commissioner may prescribe from time to time, that this section shall not apply to (i) amounts which would have been payable after death if the individual had died other than as said specified terrorist victim; and (ii) incidental death benefits paid from a plan described in the provisions of section 401(a) of the Internal Revenue Code and exempt from tax under the provisions of section 501(a) of the Internal Revenue Code. For purposes of this section, the term “employee” shall include a self-employed individual as defined under section 401(c)(1) of the Internal Revenue Code.
[Subparagraph (M) of paragraph (2) of subsection (a) applicable to discharges made on or after September 11, 2001, and before January 1, 2002. See 2002, 184, Sec. 242.
] (M) Any amount which, but for this section, would be included in gross income by reason of the discharge, in whole or in part, of indebtedness of any taxpayer if the discharge is by reason of the death of an individual incurred as the result of the terrorist attacks against the United States on September 11, 2001, or as the result of illness incurred as a result of an attack involving anthrax occurring on or after September 11, 2001, and before January 1, 2002.
(N) Any amount received by an individual as a qualified disaster relief payment.
(i) For purposes of this section, the term “qualified disaster relief payment” means an amount paid to or for the benefit of an individual (a) to reimburse or pay reasonable and necessary personal, family, living, or funeral expenses incurred as a result of a qualified disaster, (b) to reimburse or pay reasonable and necessary expenses incurred for the repair or rehabilitation, of a personal residence or repair or replacement of its contents to the extent that the need for such repair, rehabilitation, or replacement is attributable to a qualified disaster, (c) by a person engaged in the furnishing or sale of transportation as a common carrier by reason of the death or personal physical injuries incurred as a result of a qualified disaster, or (d) if such amount is paid by the United States or a state or local government, or agency or instrumentality thereof, in connection with a qualified disaster in order to promote the general welfare, but only to the extent any expense compensated by such payment is not otherwise compensated for by insurance or otherwise.
(ii) For purposes of this section, the term “qualified disaster” means (a) a disaster which results from a terroristic or military action as defined in section 692(c)(2) of the Internal Revenue Code as in effect for the current taxable year, (b) a Presidentially declared disaster as defined in section 1033(h)(3) of the Internal Revenue Code as in effect for the current taxable year, (c) a disaster which results from an accident involving a common carrier, or from any other event, which is determined by the commissioner to be of a catastrophic nature, or (d) with respect to amounts described in subclause (d) of clause (i) of this subparagraph, a disaster which is determined by the applicable United States or state authority to warrant assistance from the United States or a state or agency or instrumentality thereof.
(iii) This section shall not apply with respect to any individual identified by the attorney general of the United States to have been a participant or conspirator in a terroristic action as specified in section 25 of this chapter or a representative of such individual.
(O) Any amount received as payment under section 406 of the Air Transportation Safety and System Stabilization Act, so-called.
(P) Amounts received by an individual as disability income attributable to injuries incurred as a direct result of a terroristic or military action as defined in section 692(c)(2) of the Internal Revenue Code in effect for the current taxable year.
(3) Notwithstanding this chapter:(A) In the case of a distribution within the meaning of subsection (d)(3) of section 408A of the Code as amended and in effect for the taxable year, any amount included as income for federal tax purposes under said section 408A by reason of such distribution shall be included in gross income and, to the extent such distribution is included in adjusted gross income under subsection (c), shall be taken into account in determining taxable income under this chapter in the same manner as under subparagraph (A) of said subsection (d)(3) of said section 408A of said Code.
(B) Gain from the sale of a principal residence included in federal gross income under section 121 of the Code in effect on January 1, 1988, but excluded from federal gross income under section 121 of the Internal Revenue Code in effect for the taxable year, shall not be included in Massachusetts adjusted gross income. Notwithstanding any other provision of this chapter, the amount of gain from the sale of a principal residence excluded from Massachusetts adjusted gross income shall not be less than the exclusion allowed under section 121 of the Code in effect on January 1, 2002.
(C) Effective on and after January 1, 2002, any contributions, including employer contributions, employee deferrals and rollover contributions, allocations under or distributions from stock bonus, pension, profit-sharing, annuity or deferred payment plans or contracts or employee stock ownership plans described in sections 401(a), 402, 403, 404, 409 or 457 of the Code, or simplified employee pensions under section 408(k) of the Code, shall be included in gross income of a taxpayer only to the extent includible in the taxpayer’s gross income for federal income tax purposes under the Code.
(b) Massachusetts gross income shall be divided into three Parts:(1) Part A gross income shall be the total interest, dividends and capital gain income included in Massachusetts gross income, other than:—(A) Interest and dividends from savings deposits, including term and time deposits having a principal amount of less than one hundred thousand dollars, savings accounts, share or share savings accounts in any savings or cooperative bank, trust company or credit union incorporated in or chartered by the commonwealth; in any national bank, federal savings and loan association, federal savings bank or federal credit union located in the commonwealth; in any banking company or Morris Plan company subject to chapter one hundred and seventy-two A; in any savings or loan association or banking partnership under the supervision of the commissioner of banks.
(B) Interest from loans made in the course of business by persons subject to the provisions of sections seventy to eighty-five, inclusive, of chapter one hundred and forty.
(C) Gain income from the sale or exchange of capital assets held for more than one year, with such holding period beginning on January 1, 1995 but not including gain income from the sale or exchange of property defined under section four hundred and eight (m)(2) of the Code, as amended and in effect for the taxable year.
(2) Part B gross income shall be Massachusetts gross income not included in Part A or Part C gross income.
(3) Part C gross income shall be capital gain income which equals the gains from the sale or exchange of capital assets held for more than 1 year.
For purposes of this subsection, property acquired prior to January 1, 1996 shall be deemed to have been acquired on January 1, 1995 or on the date of actual acquisition, whichever is later.
(c) Part A adjusted gross income shall be the Part A gross income less the following deductions in the following order:(1) Any excess of the deductions allowable under subsection (d) over the Part B gross income, but the amount deductible under this paragraph shall only reduce an item of Part A gross income which is effectively connected with the active conduct of a trade or business of the taxpayer.
(2)(a) Losses from the sale or exchange of capital assets held for 1 year or less, provided that the excess, if any, of the Part A net capital loss for the year over the Part A net capital gain for the year, but not more than the amount allowed under paragraph (4), shall be applied against Part A interest and dividends; provided, however, that any remaining excess of the Part A net capital loss for the year shall be applied against capital gains included in Part C gross income. If Part A net capital loss for the year exceeds the Part C net capital gain for the year, then the excess, if any, of Part A net capital loss, after accounting for any deduction against interest and dividend income, shall be a Part A capital loss under this paragraph in the succeeding taxable year.
(b) The excess, if any, of the Part C net capital losses for the year over the Part C net capital gains for the year shall be applied against capital gains included in Part A gross income. If Part C net capital losses for the year exceed the Part A net capital gain for the year, then the excess, if any, of Part C net capital losses over Part A net capital gain, but not more than the amount allowed under paragraph (4), shall be applied against any interest and dividends included in Part A gross income, provided that the aggregate amount of the deduction allowed in this subparagraph against any interest and dividends shall not be more than the amount allowed under paragraph (4). The excess, if any, of the Part C net capital loss over the Part A net capital gain, after accounting for any deduction against interest and dividend income, shall be a Part C capital loss in the succeeding taxable year.
(3) A deduction equal to 50 per cent of the gain income from the sale or exchange of property defined under section 408(m)(2) of the Code, as amended and in effect for the taxable year, and held for more than 1 year, after reduction by any losses in paragraph (2).
(4) Notwithstanding any other provisions of this chapter, not more than an aggregate amount of $2,000 in Part A capital loss and Part C capital loss shall be applied against any interest and dividends included in Part A gross income.
(d) Part B adjusted gross income shall be the Part B gross income less the following deductions:—(1) The deductions allowable under section sixty-two and four hundred and four, without regard to section two hundred and sixty-five, of the Code;provided, however, that the following deductions shall not be allowed:—(A) The deductions allowed to life tenants and income beneficiaries by section sixty-two (a)(5) of the Code insofar as such deductions are allowed to a trust or estate subject to taxation under this chapter.
(B) Any deduction relating or allocable to any income not included in Massachusetts gross income or a proportionate part of any deduction which is in part so relating or allocable.
(C) Any net operating loss deduction allowed by section one hundred and seventy-two of the Code.
(D) In the case of an individual who is an employee within the meaning of section four hundred and one (c)(1) of the Code, the deductions allowed by section four hundred and four of the Code to the extent attributable to contributions made on behalf of such individual; provided, however, that no contribution on behalf of such individual shall be treated as an excess contribution under this chapter unless treated as an excess contribution for federal tax purposes in the year made.
(E) The deduction allowed by section one thousand three hundred and seventy-nine (b)(3) of the Code.
(F) The deduction allowed by section two hundred and nineteen of the Code relating to certain retirement savings.
(G) The deduction allowed by section four hundred and two (e)(3) of the Code relating to the ordinary income portion of a lump sum distribution.
(H) The deduction allowed by section one hundred and sixty-five of the Code relating to forfeitures because of premature withdrawal of funds to the extent that the income represented by such forfeiture was not included in Massachusetts gross income.
(I) The deduction allowed by section one hundred and sixty-two (h) of the Code.
(J) Any deduction allowed by Subchapter S of the Code with respect to a federal S corporation which is subject to taxation under this chapter as a corporate trust.
(K) The deduction allowed by section one hundred and sixty-four (f) of the Code.
(L) The deduction for any amount paid or incurred in connection with:(i) influencing legislation;(ii) participation in, or intervention in, any political campaign on behalf of or in opposition to any candidate for public office;(iii) any attempt to influence the general public, or segments thereof, with respect to elections, legislative matters, or referendums; or(iv) any direct communication with a covered executive branch official in an attempt to influence the official actions or positions of such official;within the meaning of the code, as amended and in effect on January first, nineteen hundred and ninety-four and including the exceptions and definitions set forth in section 162(e) of said Code, as amended and in effect on January first, nineteen hundred and ninety-four.
(M) The deduction allowed by section sixty-two (a)(3) of the Code.
(N) The deduction allowed by section 168(k) of the Internal Revenue Code, as amended and in effect for the current tax year.
[Subparagraph (O) of paragraph (1) of subsection (d) shall apply to taxable years beginning on or after January 1, 2005. See 2004, 466, Sec. 5.
] (O) The deduction allowed by section 199 of the Code, as amended and in effect for the current tax year.
(2) An amount equal to the deductions allowed by Part VI of the Code which (i) consist of expenses of travel, meals and lodging while away from home, or expenses of transportation paid or incurred by the taxpayer in connection with the performance by him of services as an employee; or (ii) are attributable to a trade or business carried on by the taxpayer, if such trade or business consists of the performance of services by the taxpayer as an employee and if such trade or business is to solicit, away from the employer’s place of business, business for the employer; provided, however, that the taxpayer itemizes deductions on his federal income tax return and the deductions under clauses (i) and (ii) are allowed as itemized deductions under subsection (a) of section sixty-seven of the Code. No deduction shall be allowed under this paragraph to a taxpayer who files a joint federal income tax return with his spouse unless a joint return is also filed under this chapter.
(3)(a) For purposes of the depreciation deduction allowed under sections 62(a)(1) and 168 of the Federal Internal Revenue Code, as amended and in effect for the taxable year, a taxpayer that is required to comply with section 26G 1/2 of chapter 148 of the General Laws and that has so complied, may classify an automatic sprinkler system having a situs in the commonwealth, and used exclusively in the trade or business of such taxpayer, as 5–year property as defined under section 168(e)(3) of the Federal Internal Revenue Code. The term “automatic sprinkler system” means the system installed pursuant to the provisions of said section 26G 1/2 and in accordance with the state building code.
(b) Such depreciation deduction for the automatic sprinkler system shall be allowed only upon the condition that the net income for the taxable year and all succeeding taxable years be computed without any depreciation deduction upon the property other than the deduction allowed by this section.
(e) Part C adjusted gross income shall be the Part C gross income less the following deductions:(1) Losses from the sale or exchange of capital assets held for more than 1 year. The amount of any class of net capital loss reduced by the amount of such loss that is deducted under subparagraph (b) of paragraph (2) of subsection (c), shall be Part C capital loss in the succeeding taxable year.
(2) Part C net gains shall be reduced by any remaining excess of the deductions allowable under subsection (d) over the Part B gross income after applying such excess Part B deductions against Part A gross income in accordance with paragraph (1) of subsection (c). The amount deductible under this paragraph shall not exceed the amount of Part C gross income which is effectively connected with the active conduct of a trade or business of the taxpayer. Excess Part B deductions shall not be applied to increase the amount of any net capital losses and may not reduce the amount of any net capital gain below zero. The resulting amount of net capital gain shall comprise Part C adjusted gross income.
(3) Where a taxpayer has any unused Class B net loss, Class C net loss, Class D net loss, Class E net loss, Class F net loss or Class G net loss on April 30, 2002, the aggregate amount of such net losses shall be taken into account after April 30, 2002 as a loss on the sale or exchange of a capital asset held for more than 1 year.
(f) The Part A taxable income shall be the Part A adjusted gross income less the deductions and exemptions allowable under Part A of section three.
(g) The Part B taxable income shall be the Part B adjusted gross income less the deductions and exemptions allowable under Part B of section three.
(h) The Part C taxable income shall be the Part C adjusted gross income less the deductions and exemptions allowable under Part C of section three.
(i) Massachusetts adjusted gross income shall be the sum of Part A adjusted gross income, Part B adjusted gross income and Part C adjusted gross income.
Chapter 62: Section 20, 21. Repealed, 1966, 698, Sec. 18 Chapter 62: Section 21A. Repealed, 1938, 489, Sec. 8 Chapter 62: Section 22 to 24. Repealed, 1976, 415, Sec. 100 Chapter 62: Section 25. Individuals, fiduciaries and estates subject to tax Section 25. (a) Every individual who while an inhabitant of the commonwealth, and every executor, administrator, trustee or other fiduciary who while such an inhabitant or while acting under an appointment derived from a court in the commonwealth has received any income taxable under this chapter, and the estate of every deceased inhabitant of the commonwealth, shall be subject to the taxes imposed by this chapter.
(b) Any individual (i) who dies while in active service as a member of the Armed Forces of the United States and serving in a combat zone or while a military or civilian employee of the United States as a result of terroristic or military action; and (ii) who otherwise qualifies under the provisions of section 692 of the Internal Revenue Code, shall not be subject to taxation under this chapter to the same extent as that individual is exempt from federal income taxation under said section.
(c)(1) In the case of a specified terrorist victim, any tax imposed by this chapter shall not apply with respect to the taxable year in which falls the date of death, and with respect to any prior taxable year in the period beginning with the last taxable year ending before the taxable year in which the wounds, injury, or illness referred to in paragraph (3) were incurred.
(2) If, but for this paragraph, the amount of tax not imposed by paragraph (1) with respect to a specified terrorist victim is less than $3,000, then such victim shall be treated as having made a payment against the tax imposed by this chapter for such victim’s last taxable year in an amount equal to the excess of $3,000 over the amount of tax not so imposed.
(3) Subject to such rules as the commissioner may prescribe, paragraph (1) shall not apply to the amount of any tax imposed by this chapter which would be computed by only taking into account the items of income, gain, or other amounts attributable to (i) deferred compensation which would have been payable after death if the individual had died other than as a specified terrorist victim, or (ii) amounts payable in the taxable year which would not have been payable in such taxable year but for an action taken after September 11, 2001.
(4) For purposes of this subsection, the term “specified terrorist victim” means any decedent (i) who dies as a result of wounds or injury incurred as a result of the terrorist attacks against the United States on April 19, 1995, or September 11, 2001, or (ii) who dies as a result of illness incurred as a result of an attack involving anthrax occurring on or after September 11, 2001 and before January 1, 2002. Such term shall not include any individual identified by the attorney general of the United States to have been a participant or conspirator in any such attack or representative of such an individual.
Chapter 62: Section 25A. Repealed, 1971, 555, Sec. 14 Chapter 62: Section 26. Repealed, 1976, 415, Sec. 100 Chapter 62: Section 27. Repealed, 1956, 128 Chapter 62: Section 28 to 32. Repealed, 1976, 415, Sec. 100 Chapter 62: Section 3. Taxable income: adjusted gross income less deductions and exemptions Section 3. A. In determining the Part A taxable income, the Part A adjusted gross income shall be reduced by the following deductions and exemptions.
(a) There shall be deducted from the Part A adjusted gross income in determining the Part A taxable income:—(1) Such net amount of the Part A adjusted gross income of trustees or other fiduciaries subject to taxation under sections nine or ten as is payable to or accumulated for persons not inhabitants of the commonwealth to the extent that such income would not be subject to taxation under section five A if received by a non-resident.
(2) Such net amount of the Part A adjusted gross income of trustees, executors or administrators as is pursuant to the terms of the will, deed or other instrument governing the estate or trust currently payable to or irrevocably set aside for public charitable purposes, or to or for the benefit of any organization or organizations established and operated exclusively for charitable purposes.
(b) An exemption shall be allowed under this section equal to the amount by which the total exemptions allowable under Part B of section three exceed the Part B adjusted gross income less the deductions allowable under paragraph (a) of Part B of section three. No exemption shall be allowed hereunder to any married person, other than a married person who qualifies as head of household under section two (b) of the Code, unless a joint return is filed.
B. In determining the Part B taxable income, the Part B adjusted gross income shall be reduced by the following deductions and exemptions:(a) There shall be deducted from the Part B adjusted gross income in determining the Part B taxable income:(1) Such net amount of the Part B adjusted gross income of trustees or other fiduciaries subject to taxation under sections nine or ten as is payable to or accumulated for persons not inhabitants of the commonwealth to the extent that such income would not be subject to taxation under section five A if received by a non-resident.
(2) Such net amount of the Part B adjusted gross income of trustees, executors or administrators as is pursuant to the terms of the will, deed or other instrument governing the estate or trust currently payable to or irrevocably set aside for public charitable purposes, or to or for the benefit of any organization or organizations established and operated exclusively for charitable purposes.
(3) Taxes paid to the United States under the provisions of the Federal Insurance Contributions Act or the Federal Railroad Retirement Act. In no event shall the aggregate of the otherwise allowable deductions of this subparagraph and of all sums deducted from wages as contributions to an annuity, pension, endowment or retirement fund of the United States government, the commonwealth or any political subdivision thereof, attributable to any one taxpayer exceed two thousand dollars.
(4) All sums deducted from wages as contributions to any annuity, pension, endowment or retirement fund of the United States government, the commonwealth or any political subdivision thereof including the optional retirement system established by section forty of chapter fifteen A, provided, that the deduction for such contributions and the deductions otherwise allowable under subparagraph (3) hereof attributable to any one taxpayer shall not in the aggregate exceed two thousand dollars, and any income from any contributory annuity, pension, endowment or retirement fund of the United States government or the commonwealth or any political subdivision thereof, to which the employee has contributed, or any income from a contributory annuity, pension, endowment or retirement fund of any other state or any political subdivision thereof, to the extent that income from any such similar fund established under the laws of the commonwealth is not subject to taxation in such other state or political subdivision.
[There is no subparagraph (5).
] (6) Interests and dividends in the amount of one hundred dollars for a single person, head of household or a married person filing a separate return or two hundred dollars for a husband and wife filing a joint return from savings deposits, savings accounts, shares or share savings accounts included in Part B gross income.
(7) An amount equal to employment-related expenses allowed for purposes of determining the credit allowable under section twenty-one of the Code but, for purposes of this provision, the amount of allowable employment-related expenses may exceed those claimed under section 21 of the Code for taxable years beginning on or after January 1, 2001, but may not exceed a total of $3,600 if there is one qualifying individual with respect to the taxpayer, or $7,200 if there are two or more qualifying individuals with respect to the taxpayer for taxable years beginning before January 1, 2002 and may not exceed a total of $4,800 if there is one qualifying individual with respect to the taxpayer, or $9,600 if there are two or more qualifying individuals with respect to the taxpayer for taxable years beginning on or after January 1, 2002.
(8) In the case of an individual who maintains a household which includes as a member one or more individuals under the age of 12 who qualify for exemption as a dependent under section 151 of the Code, $1,200 for taxable years beginning before January 1, 2001; but in the case of an individual who maintains a household which includes as a member (a) one or more individuals under the age of 12 who qualify for exemption as a dependent under section 151 of the Code, or (b) one or more individuals who are (i) aged 65 or older, or who are disabled, and (ii) who qualify as a dependent under section 152 of the Code, $2,400 if there is one such dependent with respect to the taxpayer, or $4,800 if there are two or more such dependents with respect to the taxpayer for taxable years beginning on or after January 1, 2001 but before January 1, 2002, and $3,600 if there is one such dependent with respect to the taxpayer, or $7,200 if there are two or more such dependents with respect to the taxpayer for taxable years beginning on or after January 1, 2002. No deduction shall be allowed under this subparagraph if a deduction is claimed under subparagraph (7). If the taxpayer is married at the close of the taxable year, the deduction provided herein shall be allowed if the taxpayer and his spouse file a joint return for the taxable year or if the taxpayer qualifies as a head of household under section 2(b) of the Code. For the purposes of this subparagraph, the term “maintaining a household” shall have the same meaning as in section 21 of the Code.
(9) In the case of an individual who pays rent for his principal place of residence and such residence is located in the commonwealth, an amount equal to 50 per cent of such rent; provided, however, that such deduction shall not exceed $3,000 for a single person, for a person that qualifies as a head of household under section two (b) of the Code, or for a husband and wife.
(10) An amount equal to ten percent of the cost of renovating any abandoned building within an economic opportunity area as determined by the economic assistance coordinating council established by section three B of chapter twenty-three A.
(11) An amount equal to the amount by which tuition payments by the taxpayer to a two or four-year college in which the taxpayer or a dependent of said taxpayer, pursuant to subparagraph three of paragraph b of subsection B, is enrolled, less any scholarships, grants or financial aid received, exceeds twenty-five percent of the taxpayer’s Massachusetts adjusted gross income, exclusive of this deduction.
(12) An amount equal to the amount of interest payments paid by the taxpayer on education debt during the taxable year. For the purposes of this subparagraph, the term “education debt” shall mean any loan which was or is administered by the financial aid office of a two-year or four-year college at which the taxpayer, or a dependent of such taxpayer, pursuant to subparagraph (3) of paragraph (b) of Part B of this section, was enrolled as an undergraduate student and which loan has been secured through a state student loan program, a federal student loan program or a commercial lender and which loan was obtained and expended solely for the purposes of paying tuition and other expenses directly related to such undergraduate student enrollment. A taxpayer who claims a deduction under this section shall not be eligible for a deduction for the same expenses under subparagraph (1) of paragraph (d) of section 2 of this chapter.
(13) An amount equal to the amount of the charitable contribution deduction allowed or allowable to the taxpayer under section 170 of the Code; provided, however, that, in taxable years beginning on or after January 1, 2002, no such deduction shall be allowed in any taxable year unless the rate of tax on Part B taxable income in section 4 in the prior taxable year was equal to 5 per cent; and provided, further, that notwithstanding said section 170 of the Code, no deduction shall be allowed for contributions of household goods or used clothing, as those items are recognized under said section 170 of the Code. All requirements, conditions and limitations applicable to charitable contributions under the Code shall apply for purposes of determining the amount of the deduction under this subparagraph, except that taxpayers shall not be required to itemize their deductions in their federal income tax returns.
(b) The following exemptions shall be allowable to individuals against Part B income:(1) In the case of a single person or a married person filing a separate return,(A) a personal exemption of $3,300 for tax years beginning on or after January 1, 2002,For taxable years beginning on or after January 1, 2004, the personal exemption shall be: (i) the exemption in the previous year plus $275 if the inflation-adjusted growth in baseline taxes in the fiscal year ending the June 30 of the previous year exceeds 2.
5 per cent and the inflation-adjusted change in baseline taxes for each consecutive 3 month period reported by the commissioner between August and December of the previous year is greater than 0; or (ii) the personal exemption in effect for the prior year. On or before October 15 of each year, the commissioner shall submit a report to the secretary of administration, the house and senate committees on ways and means and the joint committee on taxation providing a preliminary statement of the personal exemption for taxable years beginning on or after the following January 1. On or before December 15, the commissioner shall make a final statement of the personal exemption for the following year to the same recipients.
The personal exemption shall not exceed $4,400.
(B) an additional exemption of two thousand two hundred dollars if the taxpayer was totally blind at the close of his taxable year, and(C) an additional exemption of seven hundred dollars if the taxpayer had attained the age of sixty-five before the close of his taxable year.
(1A) In the case of a head of household, as defined under the provisions of section two (b) of the Code, filing a separate return,(A) a personal exemption of $5,100 for tax years beginning on or after January 1, 2002,For taxable years beginning on or after January 1, 2004, the personal exemption shall be: (i) the exemption in the previous year plus $425 if the inflation-adjusted growth in baseline taxes in the fiscal year ending the June 30 of the previous year exceeds 2.
5 per cent and the inflation-adjusted change in baseline taxes for each consecutive 3 month period reported by the commissioner between August and December of the previous year is greater than 0; or (ii) the personal exemption in effect for the prior year. On or before October 15 of each year, the commissioner shall submit a report to the secretary of administration, the house and senate committees on ways and means and the joint committee on taxation providing a preliminary statement of the personal exemption for taxable years beginning on or after the following January 1. On or before December 15, the commissioner shall make a final statement of the personal exemption for the following year to the same recipients.
The personal exemption shall not exceed $6,800.
(B) an additional exemption of two thousand two hundred dollars if the taxpayer was totally blind at the close of his taxable year, and(C) an additional exemption of seven hundred dollars if the taxpayer had attained the age of sixty-five before the close of his taxable year.
(2) In the case of a husband and wife filing a joint return,(A) a personal exemption of $6,600 for tax years beginning on or after January 1, 2002,For taxable years beginning on or after January 1, 2004, the personal exemption shall be: (i) the exemption in the previous year plus $550 if the inflation-adjusted growth in baseline taxes in the fiscal year ending the June 30 of the previous year exceeds 2.
5 per cent and the inflation-adjusted change in baseline taxes for each consecutive 3 month period reported by the commissioner between August and December of the previous year is greater than 0; or (ii) the personal exemption in effect for the prior year. On or before October 15 of each year, the commissioner shall submit a report to the secretary of administration, the house and senate committees on ways and means and the joint committee on taxation providing a preliminary statement of the personal exemption for taxable years beginning on or after the following January 1. On or before December 15, the commissioner shall make a final statement of the personal exemption for the following year to the same recipients.
The personal exemption shall not exceed $8,800.
(B) an additional exemption of two thousand two hundred dollars for each spouse who was totally blind at the close of his taxable year, and(C) an additional exemption of seven hundred dollars for each spouse who had attained the age of sixty-five before the close of his taxable year.
(3) An exemption of one thousand dollars for each individual who qualifies for exemption as a dependent under section one hundred and fifty-one (c) of the Code.
(4) An amount equal to the deduction for medical, dental and other expenses allowed under section two hundred and thirteen of the Code; provided, however, that the individual itemizes deductions on his federal income tax return. No exemption shall be allowed under this subparagraph to an individual who files a joint federal income tax return with his spouse unless a joint return is also filed under this chapter.
(5) An amount equal to the fees paid by the taxpayer within the taxable year to any agency licensed to place children for adoption on account of the adoption process of a minor child.
(c) Except as hereinafter provided for a non-resident, if the taxable year of any person subject to tax under this chapter is a short taxable year, and such short taxable year is not due to the death of such person, any exemption or deduction under Part B relating or allocable in whole or in part, to any income not included in Massachusetts gross income shall not be allowed to the extent thereof; and any other exemption or deduction under Part B that is not so related or allocable shall be limited to an amount equal to the exemption or deduction otherwise allowable if the person has been a resident of the commonwealth throughout the full taxable year multiplied by a fraction the numerator of which is the number of days in the short taxable year and the denominator of which is three hundred and sixty-five.
If any person subject to tax under this chapter is a non-resident for all or any part of a taxable year, any exemption or deduction under Part B relating or allocable, in whole or in part, to any income not included in Massachusetts gross income shall not be allowed to the extent thereof; and any other exemption or deduction under Part B that is not so related or allocable shall be limited to an amount otherwise allowable under Part B if the person has been a resident of the commonwealth throughout the full taxable year multiplied by a fraction the numerator of which is his Massachusetts gross income and the denominator of which is the amount which would have been his Massachusetts gross income had he been a resident of the commonwealth throughout the full taxable year.
C. In determining the Part C taxable income, the Part C adjusted gross income shall be reduced by the following deductions and exemptions:(a) There shall be deducted from the Part C adjusted gross income in determining the Part C taxable income:(1) Such net amount of the Part C adjusted gross income of trustees or other fiduciaries subject to taxation under sections nine or ten as is payable to or accumulated for persons not inhabitants of the commonwealth to the extent that such income would not be subject to taxation under section five A if received by a non-resident.
(2) Such net amount of the Part C adjusted gross income of trustees, executors or administrators as is pursuant to the terms of the will, deed or other instrument governing the estate or trust currently payable to or irrevocably set aside for public charitable purposes, or to or for the benefit of any organization or organizations established and operated exclusively for charitable purposes.
(b) An exemption shall be allowed under this section equal to the amount by which the total exemptions allowable under Part B of section three exceed the Part B adjusted gross income less the deductions allowable under paragraph (a) of Part B of section three and the Part A adjusted gross income less the deductions allowable under paragraph (a) of Part A of section three. No exemption shall be allowed hereunder to any married person filing a separate return.
Chapter 62: Section 33. Repealed, 1976, 415, Sec. 100 Chapter 62: Section 34. Repealed, 1947, 483, Sec. 2 Chapter 62: Section 35 to 37B. Repealed, 1976, 415, Sec. 100 Chapter 62: Section 38. Repealed, 1953, 654, Sec. 45 Chapter 62: Section 39. Repealed, 1976, 415, Sec. 100 Chapter 62: Section 4. Rates of tax for residents, non-residents and corporate trusts Section 4. Residents shall be taxed on their taxable income, non-residents shall be taxed, to the extent specified in section five A on their taxable income, and corporate trusts shall be taxed to the extent specified in section eight on their taxable income, as follows:(a)(1) Part A taxable income consisting of capital gains shall be taxed at the rate of 12 per cent.
(2) Part A taxable income consisting of interest and dividends shall be taxed at the rate of 5.
95 per cent provided, however that any interest and dividend income subject to this paragraph shall be taxed at the same rate as provided for in subsection (b) of this section.
(b) Part B taxable income shall be taxed at the rate of 5.
3 per cent for tax years beginning on or after January 1, 2002.
For taxable years subsequent to tax years in which personal exemption amounts in effect pursuant to subparagraphs (1), (1A) and (2) of paragraph (b) of section 3 are the same as those amounts that were in effect for the taxable year beginning on January 1, 2001, Part B taxable income shall be taxed at the lesser of: (i) the rate in effect for the prior taxable year minus.
05 per cent if the inflation adjusted growth in baseline taxes in the fiscal year ending the June 30 of the previous year exceeds 2.
5 per cent and the inflation-adjusted change in baseline taxes for each consecutive 3 month period reported by the commissioner between August and December of the previous year is greater than 0; or (ii) the rate in effect for the prior year. On or before October 15 of each year, the commissioner shall submit a report to the secretary of administration, the house and senate committees on ways and means and the joint committee on taxation providing a preliminary statement of the Part B tax rate for taxable years beginning on or after the following January 1. On or before December 15, the commissioner shall make a final statement of the Part B tax rate for the following year to the same recipients.
Part B taxable income shall be taxed at a rate of not less than 5 per cent.
(c) Part C taxable income shall be taxed at the same rate as provided for in paragraph (b).
Chapter 62: Section 40. Repealed, 1961, 251 Chapter 62: Section 41. Repealed, 1976, 415, Sec. 100 Chapter 62: Section 42. Liability of fiduciaries Section 42. Executors, administrators, trustees or other fiduciaries shall be personally liable for any tax under this chapter which is assessed on income received by them and may be allowed in their accounts for the amounts paid by them.
Chapter 62: Section 43 to 46. Repealed, 1976, 415, Sec. 100 Chapter 62: Section 47. Repealed, 1930, 416, Sec. 2 Chapter 62: Section 48. Repealed, 1976, 415, Sec. 100 Chapter 62: Section 49 to 53. Repealed, 1931, 426, Sec. 184 BUSINESS Chapter 62: Section 5. Exempt income of individuals; exemption of stock bonus, pension or profit-sharing trust Section 5. (a) Notwithstanding the provisions of section four, Part A taxable income, Part B taxable income and Part C taxable income, shall be exempt from all taxes imposed under this chapter if the Massachusetts adjusted gross income for the taxable year does not exceed the following threshold:(1) in the case of a single person, eight thousand dollars, or(2) in the case of a husband and wife filing a joint return or a person filing as a head of household, seven thousand six hundred dollars plus the deductions allowed under the following provisions of paragraph (b) of subsection (B) of section three of this chapter.
(A) an amount equal to that allowed for personal exemptions under clause (A) of subparagraph (1a) of said paragraph or clause (A) of subparagraph (2) of said paragraph, and(B) an amount equal to the total exemption allowed under subparagraph (3) of said paragraph.
No tax imposed under this chapter shall exceed ten percent of the Massachusetts adjusted gross income less the aforementioned threshold; provided, however, that the provisions of this sentence shall not apply in any case where Massachusetts adjusted gross income exceeds one hundred and seventy-five hundredths of the aforementioned threshold. No exemptions shall be allowed under this section to a married individual filing a separate return, except for those individuals qualifying for head of household under section two (b) of the Code. In the case of a short taxable year, occurring for any reason other than residence during one portion of the normal taxable year and nonresidence during another portion, there shall be substituted for the above threshold amounts, those amounts which bear the same relation to such sums as the number of days in the taxable year bears to three hundred and sixty-five. With respect to a person who is a nonresident for all or part of the taxable year, Massachusetts adjusted gross income shall be determined as if he were a resident of the commonwealth throughout the entire taxable year.
(b) Notwithstanding any other provision of this chapter, no tax shall be imposed under this chapter upon any stock bonus, pension or profit-sharing trust qualifying under section four hundred and one of the Code or any individual retirement account qualifying under section four hundred and eight of the Code.
Chapter 62: Section 54. Severability Section 54. If any part, subdivision or section of this chapter shall be declared unconstitutional, the validity of its remaining provisions shall not be affected thereby.
Chapter 62: Section 55 to 60. Repealed, 1976, 415, Sec. 100 BUSINESS Chapter 62: Section 5A. Taxation of income earned by non-residents; regulations; certain military personnel [Subsection (a) effective for tax years beginning on or after January 1, 2003. See 2003, 4, Sec. 86.
] Section 5A. (a) The amount of the Part A taxable income, the Part B taxable income and the Part C taxable income of any non-resident of the commonwealth derived from the Massachusetts gross income of such person shall be taxed in accordance with the provisions of section four. The Massachusetts gross income shall be determined solely with respect to items of gross income from sources within the commonwealth of such person and in determining the adjusted gross income of each Part only those deductions shall be allowed which are attributable to items included in Massachusetts gross income as so determined; provided, however, that for purposes of determining the gross income of a non-resident individual from sources within the commonwealth, the provisions of sections 1 to 2A, inclusive, of chapter 63 shall apply to a partnership subject to the definition of a financial institution in clause 9 of section 1 of chapter 63 which as of January 1, 1995, was subject to supervision and examination by the commissioner of banks and whose partners have been subject to tax with respect to income from said partnership under the provisions of chapter 62 and have been filing in the commonwealth on that basis. Items of gross income from sources within the commonwealth are items of gross income derived from or effectively connected with: (1) any trade or business, including any employment carried on by the taxpayer in the commonwealth, whether or not the nonresident is actively engaged in a trade or business or employment in the commonwealth in the year in which the income is received; (2) the participation in any lottery or wagering transaction within the commonwealth; and (3) the ownership of any interest in real or tangible personal property located in the commonwealth. In computing the taxable income of each Part, the nonresident shall be allowed the deductions and exemptions provided as to each Part in section 3. For purposes of this section, gross income derived from or effectively connected with any trade or business, including any employment, carried on by the taxpayer in the commonwealth shall mean the income that results from, is earned by, is credited to, accumulated for or otherwise attributable to either the taxpayer’s trade or business in the commonwealth in any year or part thereof, regardless of the year in which that income is actually received by the taxpayer and regardless of the taxpayer’s residence or domicile in the year it is received. It shall include, but not be limited to, gain from the sale of a business or of an interest in a business, distributive share income, separation, sick or vacation pay, deferred compensation and nonqualified pension income not prevented from state taxation by the laws of the United States and income from a covenant not to compete. The foregoing shall not be deemed to include income from qualified tax-deferred retirement plans which are exempt from taxation under any other provision of this chapter.
(b) The commissioner shall adopt regulations providing for the method of determining the items and amounts of Massachusetts gross income derived from sources within the commonwealth by a non-resident, based upon the method set forth in section thirty-eight of chapter sixty-three or upon any other reasonable method.
(c) In applying this section, the compensation paid by the United States to its uniformed military personnel assigned to duty at military posts, bases or stations within the commonwealth for services rendered by said personnel while on active duty, shall be deemed to be from sources other than sources within the commonwealth.
BUSINESS Chapter 62: Section 5B. Repealed, 1973, 723, Sec. 2 BUSINESS Chapter 62: Section 6. Credits Section 6. The following credits shall be allowed against the tax imposed by this chapter:(a) A credit shall be allowed against taxes imposed by this chapter to a resident for taxes due any other state, territory or possession of the United States, or the Dominion of Canada or any of its provinces on account of any item of Massachusetts gross income subject to the following restrictions and limitations: (i) the amount of such taxes due on such income shall exclude interest and penalties; (ii) the amount of such taxes due shall be reduced by any federal credit therefor allowable on the resident’s federal income tax return; and (iii) the amount of the credit allowable shall be the lesser of such taxes as reduced by (i) and (ii), or the amount of tax imposed by this chapter multiplied by a fraction the numerator of which is such item of Massachusetts Part A, Part B or Part C income and the denominator of which is the total Massachusetts Part A, Part B or Part C income, as the case may be. The credit hereunder shall be allowed to estates of residents and to trustees or other fiduciaries described in subsection (c) of section ten.
[There is no subsection (b) or (c).
] (d) any owner or tenant of residential property located in the commonwealth who is not a dependent of another taxpayer and who occupies said property as his principal residence, shall be allowed a credit equal to fifteen per cent of the net expenditure for a renewable energy source property or one thousand dollars, whichever is lesser; provided, however, that in the case of a newly constructed residence the credit shall be available to the original owner/occupant. Any taxpayer entitled to this credit for any taxable year, the amount of which exceeds his total tax due for the then current taxable year, may carry over the excess amount, as reduced from year to year, and apply it to his tax liability for any one or more of the next succeeding three taxable years; provided, however, that in no taxable year may the amount of the credit allowed exceed the total tax due of the taxpayer for the relevant taxable year. Joint owners of a residential property shall share any credit available to the property under this subsection in the same proportion as their ownership interest.
As used in this section the following words shall have the following meanings:(I) “Renewable energy source property”, property, including materials and component parts thereof, separately purchased and assembled by such residential property owner;(A) which, when installed in connection with a dwelling, transmits or uses:(1) solar energy or any other form of renewable energy which the commissioner specified by regulations, for the purpose of heating or cooling such dwelling or providing hot water for use within such dwelling, or produces electricity for such purposes, or(2) wind energy for nonbusiness residential purposes;(B) the original use of which begins with the taxpayer;(C) which can reasonably be expected to remain in operation for at least five years; and(D) which meets the performance and quality standards, if any, which:(i) have been prescribed by the commissioner by regulation; and(ii) are in effect at the time of the acquisition of the property.
(II) “Net expenditure”, the total of the purchase price for any renewable energy source property, plus installation cost less any credits received pursuant to the Internal Revenue Code and less grants or rebates received from the United States Department of Housing and Urban Development.
(e) Any owner of a residential premises who pays for the containment or abatement of any paint, plaster or other accessible structural materials containing dangerous levels of lead or who pays for the replacement of one or more window units in a dwelling unit constructed prior to nineteen hundred and seventy-eight for the purpose of bringing a dwelling unit into full compliance with the provisions of sections one hundred and eighty-nine A to one hundred and ninety-nine B, inclusive, of chapter one hundred and eleven concerning materials containing dangerous levels of lead shall be allowed a credit in the amount of the cost of said removal, containment or replacement or one thousand five hundred dollars per dwelling unit, whichever is less. Any owner of a residential premises who pays for the containment or abatement of any paint, plaster or other accessible structural materials containing dangerous levels of lead or who pays for the replacement of one or more window units in a dwelling unit constructed prior to nineteen hundred and seventy-eight in pursuit of an emergency lead management plan and letter of interim control, as provided for in subsection (b) of section one hundred and ninety-seven of chapter one hundred and eleven concerning materials containing dangerous levels of lead shall be allowed a credit in the amount of one-half the cost of said removal, containment, or replacement or five hundred dollars per dwelling unit, whichever is less, provided that any costs claimed as part of such credit must be certified by a licensed inspector to be costs necessary to achieving ultimate full compliance; and provided, further, that any credit received for interim control shall be considered as part of the maximum credit allowable per unit for any owner pursuing full compliance. Tax credits for full compliance or interim controls shall include window replacement done for the purposes of lead abatement. Such credits shall be allowed for the containment, abatement or replacement of any paint, plaster or other accessible structural materials containing dangerous levels of lead only if (i) the presence of lead is established by an inspector licensed by the childhood lead poisoning prevention program, and (ii) following such removal, the owner obtains a letter of compliance or interim control from a licensed inspector pursuant to subsections (b), (c) and (d) of section one hundred and ninety-seven of chapter one hundred and eleven and files with the department of revenue such letter of compliance or interim control and a certification, in recordable form, stating the number of dwelling units, as defined in the state sanitary code for which such credit is being claimed. Any taxpayer eligible for the foregoing tax credit for the then taxable year may carry forward any such unused credit or any unused portions thereof and apply it to his tax liability in any one or more of the succeeding seven taxable years. The commissioner shall, in consultation with the director of the childhood lead poisoning prevention program and the director of labor and workforce development, promulgate regulations to implement the provisions of this section.
(f) There is hereby established a credit for businesses offering health insurance to their employees. For the purposes of this section, the term “businesses” shall include professions, sole proprietorships, trades, businesses, or partnerships.
Any business which (a) has one or more full-time equivalent employees unrelated to its owners or partners but no more than fifty of such employees calculated on an average annual basis, (b) in any period of three consecutive years beginning after December thirty-first, nineteen hundred and eighty-four and before April twenty-first, nineteen hundred and eighty-eight makes no expenditure for the full or partial payment of premiums for a health insurance plan covering any of its then employees, and (c) makes qualifying health insurance premium expenditures for a health insurance plan covering its employees in each year beginning after such three year period, including any year in which a credit is taken pursuant to this section, shall be allowed a credit against its income tax due under this chapter in two consecutive tax years.
The amount of such credit in the first tax year in which it is taken shall be twenty per cent of the entire amount of the qualifying health insurance premium expenditure made by such business in such tax year. The amount of such credit in the second tax year in which it is taken shall be ten per cent of the entire amount of such qualifying health insurance premium expenditure made by such business in such tax year. To qualify for such credits, the health insurance premium expenditure of such business must equal at least fifty per cent of the total cost of the premiums for such health insurance plan and such health insurance plan must be available at least to all of the full-time employees of such business. For the purposes of this section, “unrelated” shall mean not having the familial relationship of spouse, mother, father, or child.
Credits pursuant to this subsection shall be available only in tax years beginning on or after January first, nineteen hundred and ninety and ending on or before December thirty-first, nineteen hundred and ninety-two. This subsection shall expire on December thirty-first, nineteen hundred and ninety-two.
(g) (1) A credit shall be allowed against the tax liability imposed by this chapter, up to an amount equal to fifty percent of such liability in any taxable year, an amount equal to five percent of the cost of any property that (i) would qualify for the credit allowed by section thirty-one A of chapter sixty-three if the property were purchased by a manufacturing corporation or a business corporation engaged primarily in research and development and (ii) is used exclusively in a certified project within the economic opportunity area as defined in section three A of chapter twenty-three A. If such property is disposed of or ceases to be in qualified use within the meaning of said section thirty-one A or if such property ceases to be used exclusively in such a certified project within such an economic opportunity area before the end of its useful life, the recapture provisions of subsection (e) of said section thirty-one A shall apply and an amount determined thereunder shall be added to the tax imposed by this chapter.
(2) Any taxpayer entitled to a credit under this subsection for any taxable year may carry over and apply to the tax for any one or more of the next succeeding ten taxable years, the portion, as reduced from year to year, of those credits which exceed the tax for the taxable year; provided, however, that in no event shall the taxpayer apply the credit to the tax for any taxable year beginning more than five years after the certified project or economic opportunity area ceases to qualify as such under the provisions of chapter twenty-three A.
(3) For purposes of this subsection, the commissioner of revenue may aggregate the activities of all entities, whether or not incorporated, under common control as defined in subsection (f) of section forty-one of the Code.
(4) The commissioner of revenue shall promulgate such rules and regulations necessary to implement the provisions of this subsection. Such rules and regulations may provide for the adjustment of prices and elimination of transactions between related taxpayers to ensure that all amounts upon which the credit is based reasonably reflect fair market value. In addition, such rules and regulations shall include provisions to prevent the generation of multiple credits with respect to the same property.
(h) A taxpayer shall be allowed a credit against the taxes imposed by this chapter if such person qualified for and claimed the earned income credit, so called, allowed under the provisions of section 32 of the Code, as amended and in effect for the taxable year. The credit allowed by this subsection shall equal 15 per cent of the federal credit received by the taxpayer for the taxable year. If other credits allowed under this section are utilized by the taxpayer for the taxable year, the credit afforded by this subsection shall be applied last. If the amount of the credit allowed hereunder exceeds the taxpayer’s liability, the commissioner shall treat such excess as an overpayment and shall pay the taxpayer the amount of such excess, without interest.
(i) Any owner of residential property located in the commonwealth who is not a dependent of another taxpayer and who occupies said property as his principal residence, shall be allowed a credit equal to 40 per cent of the expenditures for design and construction expenses for the repair or replacement of a failed cesspool or septic system pursuant to the provisions of Title V as promulgated by the department of environmental protection in 1995. Said expenditures shall be the actual cost to the taxpayer or $15,000, whichever is less; provided, however, that said credit shall be available to eligible taxpayers beginning in the tax year in which the repair or replacement of said cesspool or septic system was completed; and provided, further, that said credit shall not exceed $1,500 in any tax year and any excess credit may be applied over the following five subsequent tax years up to an aggregate maximum of $6,000. The amount of any such credit shall be reduced by an amount equal to the total interest subsidy or grant received from the commonwealth, whether directly or indirectly, toward the cost of said expenditures. The department shall promulgate such rules and regulations as are necessary to administer the credit afforded by this subsection, including, but not limited to, a notification system by the commonwealth to recipients of said interest subsidy or grant of the amount of the total subsidy provided by the commonwealth.
(j)(1) A taxpayer who commences and diligently pursues an environmental response action on or before August 5, 2005 and who achieves and maintains a permanent solution or remedy operation status in compliance with chapter 21E and the regulations promulgated thereunder which includes an activity and use limitation shall, at the time such permanent solution or remedy operation status is achieved, be allowed a base credit of 25 per cent of the net response and removal costs incurred between August 1, 1998 and January 1, 2007 for any property it owns or leases for business purposes and which is located within an economically distressed area as defined in section 2 of chapter 21E. Such costs shall be not less than 15 per cent of the assessed value of the property prior to remediation and the site shall be reported to the department of environmental protection. A credit of 50 percent of such costs shall be allowed for any such taxpayer who achieves and maintains a permanent solution or remedy operation status in compliance with chapter 21E and the Massachusetts Contingency Plan at 310 CMR 40.
00, as amended, which does not include an activity and use limitation. Only a taxpayer that is an eligible person, as defined by section 2 of chapter 21E, and not subject to any enforcement action brought pursuant to chapter 21E shall be allowed a credit.
Any credit allowed under this subsection may be taken only after a response action outcome statement or remedy operation status submittal has been filed with the department of environmental protection as set forth in the Massachusetts Contingency Plan at 310 CMR 40.
00, as amended.
(2) If the taxpayer ceases to maintain the remedy operation status or the permanent solution in violation of the Massachusetts Contingency Plan prior to the sale of the property or the termination of the lease, the difference between the credit taken and the credit allowed for maintaining the remedy shall be added back as additional taxes due in the year the taxpayer fails to maintain the remedy operation status or permanent solution. The amount of the credit allowed for maintaining the remedy shall be determined by multiplying the original credit by the ratio of the number of months the remedy was adequately maintained over the number of months of useful life of the property. For the purposes of this paragraph, the useful life of the property shall be the same as that used by corporations for depreciation purposes when computing federal income tax liability; provided, however, that in the case of real property that is not depreciable, the useful life shall be deemed to be 12 months.
(3) Notwithstanding the provisions of this subsection, the maximum amount of credits otherwise allowable in any taxable year to a taxpayer shall not exceed 50 per cent of its excise imposed by this chapter. Any taxpayer entitled to a credit under this subsection for any taxable year may carry over and apply to its tax liability for any subsequent taxable year, not to exceed 5 taxable years, the portion of those credits, as reduced from year to year, which were not allowed under this subparagraph; provided, however, that in no event shall the taxpayer apply the credit in any taxable year in which it has ceased to maintain the remedy operation status or the permanent solution for which the credit was granted.
(4) For the purposes of this section, net response and removal costs shall be expenses paid by the taxpayer for the purpose of achieving a permanent solution or remedy operation status in compliance with chapter 21E. No credit shall be allowed under this section for the amount of state financial assistance received from the Redevelopment Access to Capital program established pursuant to section 60 of chapter 23A or from the Brownfields Redevelopment Fund, established in section 29A of chapter 23G. For the purposes of the Redevelopment Access to Capital program, the amount of state financial assistance shall be calculated as the amount of state funds paid on behalf of the borrower for participation in the program and not the amount of the loan guaranteed but, if the loan guarantee is invoked, any credit taken for the amount of the loan shall be added back as taxes due in the year the loan is paid.
(k) (1) As used in this subsection, the following words shall have the following meanings:—“Cost-of-living adjustment”, for any calendar year, the percentage, if any, by which the CPI for the preceding calendar year exceeds the CPI for calendar year 1999.
“CPI”, the consumer price index for any calendar year as defined in section 1 of the Code.
“Head of household”, as defined in section 2(b) of the Code.
“Real estate tax payment”, the real estate tax levied pursuant to chapter 59 on the taxpayer’s residence and actually paid by the taxpayer during the taxable year, including water and sewer debt service charges assessed pursuant to subsection (n) of section 21C of chapter 59, exclusive of special assessments and delinquent interest, and less any abatement granted. For owners of residential property located in communities which have not exercised the option to assess water or sewer debt service charges pursuant to subsection (n) of section 21C of chapter 59, the real estate tax payment to be considered for purposes of calculating this credit shall also include 50 per cent of the owner’s water and sewer charges actually paid in the taxable year for which the credit is sought. In the case of a multi-unit dwelling, a land area in excess of one acre or a multi-purpose building or land area, the real estate tax payment, including the water and sewer charges as applicable, shall constitute that portion of the real estate tax levied and paid, and that portion of applicable water and sewer charges actually paid, on the entire building or area, which corresponds to the portion of the area or building used and occupied as the residence of the taxpayer, in accordance with procedures established by the commissioner.
“Rent constituting real estate tax payment”, 25 per cent of the rent actually paid by the taxpayer, under a good faith rental agreement, for the right of occupancy of the residence during the taxable year or a portion thereof.
“Residence”, the building or portion thereof, including a mobile home, owned or rented and actually occupied by the taxpayer as the taxpayer’s primary dwelling during the taxable year and located within the commonwealth, together with so much of the land surrounding it, not to exceed one acre, as is reasonably necessary to the use of the dwelling as a home. A residence may consist of a part of a multi-unit or multi-purpose building.
“Taxpayer’s total income”, the sum of the taxpayer’s Part A adjusted gross income, Part B adjusted gross income and Part C adjusted gross income, as defined in section 2, increased by, to the extent they are excluded or subtracted from adjusted gross income, the following: the total amount of income and receipts from social security, retirement, pension, or annuities, cash, but not in-kind, public assistance, tax-exempt interest and dividends, net capital losses deducted pursuant to paragraph (2) of subsection (c) of section 2, net losses in any class of Part C adjusted gross income as defined in subsection (e) of section 2, capital gains deducted pursuant to subparagraph (K) of paragraph (1) of subsection (d) of section 2, income from a partnership or trust not included therein and gross receipts from any other source other than assistance received by this subsection; and reduced by the total amount of the exemptions allowed by subparagraphs (B) and (C) of paragraph (1), subparagraphs (B) and (C) of paragraph (1A), subparagraphs (B) and (C) of paragraph (2), and paragraph (3), of subsection (b) of section 3.
(2) An owner or tenant of residential property located in the commonwealth, who is 65 years of age or older, who is not a dependent of another taxpayer and who occupies said property as his principal residence, shall be allowed a credit equal to the amount by which the real estate tax payment or the rent constituting real estate tax payment exceeds 10 per cent of the taxpayer’s total income, but the credit shall not exceed $750.
(3) The credit shall be available only if:(i) the taxpayer’s total income does not exceed $40,000 for a single individual who is not the head of a household, $50,000 for a head of household, and $60,000 for a husband and wife filing a joint return; and(ii) the assessed valuation of the residence does not exceed $400,000.
(4) For a taxable year beginning on or after January 1, 2001, the income, valuation and credit limits in this subsection shall be increased by amounts equal to such income, valuation and credit limits multiplied by the cost-of-living adjustment for the calendar year in which such taxable year begins. If any such increase in an income or valuation limit is not a multiple of $1,000, such increase shall be rounded to the next lowest multiple of $1,000. If the increase in the credit limit is not a multiple of $10, such increase shall be rounded to the next lowest multiple of $10.
(5) No credit shall be allowed for a married individual unless a joint return is filed.
(6) No credit shall be allowed by this subsection with respect to the real estate tax payment or rent constituting a real estate tax payment on more than one residence of any taxpayer during any taxable year, but a taxpayer whose principal place of residence changes during the course of the year may claim a credit for the real estate tax payment or rent constituting a real estate tax payment with respect to each such principal residence actually occupied during the year.
(7) The credit allowed by this subsection shall be allowed against the taxes imposed by this chapter for the taxable year, reduced by the other credits permitted by this section. If the credit exceeds the tax as so reduced, the commissioner shall treat such excess as an overpayment and shall pay the taxpayer, without interest, the amount of such excess. Any person entitled to claim any credit pursuant to this subsection and not otherwise required to file a return under section 6 of chapter 62C may obtain a refund in the amount of such credit by filing a return and claiming a refund.
(8) Any credit provided by this subsection shall not be counted as income in determining eligibility or benefits under any other means-tested assistance program, including but not limited to all such cash, food, medical, housing, energy and educational assistance programs.
(9) No credit shall be provided by this subsection if the state or federal government subsidizes the claimant’s rent through any rental assistance program.
Chapter 62: Section 61. Repealed, 1971, 555, Sec. 17 Chapter 62: Section 62. Methods of accounting; fiscal years Section 62. Income taxable under this chapter shall be determined in accordance with the method of accounting regularly employed in keeping the books of the taxpayer unless it is established that such method does not clearly reflect income. If a taxpayer does not keep books of account, his income shall be determined on the cash receipts and disbursements method of accounting. Any taxpayer who changes the method of accounting regularly employed by him in keeping his books shall not be permitted to report his income on a method different from that used for the preceding year without obtaining the consent of the commissioner. The period for which income is to be computed shall be on the basis of a calendar year unless a taxpayer actually keeps his books of account on the basis of a fiscal year and has obtained permission from the commissioner to report his income on such a basis.
Chapter 62: Section 63. Installment transactions [Subsection (a) applicable to tax years beginning on or after January 1, 2005. See 2004, 262, Sec. 72.
] Section 63. (a) For the purposes of this section, the term “installment transaction” shall mean a transaction which:(1) is treated for federal income tax purposes under section 453 of the Code; and(2) would, but for the application of said section 453 of the Code, result in an item of Massachusetts gross income for the taxable year of the transaction that is equal to or greater than $1,000,000.
(b) In the case of any person having an installment transaction for a taxable year, the federal gross income of such taxable year shall be modified for the purpose of applying section two as follows:(1) the federal gross income shall be increased by the excess of the federal adjusted basis of the property disposed of in the transaction over the Massachusetts adjusted basis of such property, or, if there is more than one such transaction by the sum of all such excesses; and(2) the federal gross income shall be decreased by the excess of the Massachusetts adjusted basis of the property disposed of in the transaction over the federal adjusted basis of such property, or, if there is more than one such transaction, by the same of all such excesses.
(3) no modification shall be made under this subsection to the extent that such modification would duplicate a modification required under section six F.
(c) Any person having an installment transaction in a taxable year shall file a return for such taxable year and shall, with respect to all such transactions in such year, as a group and not separately, file with the return an election to be treated either under paragraph (d) or (e) of this section. Once made election shall not be revoked without the consent of the commissioner. In the case of a person having an installment transaction treated under section four hundred and fifty-three of the Code such election shall apply to the taxable year and to all subsequent taxable years, unless the commissioner consents to a new election for any taxable year and all subsequent taxable years.
[Subsection (d) applicable to tax years beginning on or after January 1, 2005. See 2004, 262, Sec. 72.
] (d) If installment transaction treatment under this paragraph is elected for any taxable year no further modifications with respect to installment transactions of such taxable year shall be made to federal gross income in determining Massachusetts gross income for such taxable year or for any subsequent taxable year of any person. There shall be computed the excess, if any, of the tax which would have been imposed under this chapter for the taxable year had the method of paragraph (e) of this section been elected over the tax actually imposed by this chapter for such taxable year. The person making the election shall deposit with the commissioner security, in a form satisfactory to the commissioner, in an amount equal to such excess for the payment of future taxes under this chapter. When all federal gross income to be included with respect to installment transactions of such taxable year has been included in federal gross income, and all resulting taxes have been paid to the commonwealth, the commissioner shall release the security deposited for such taxable year. The commissioner shall by regulation provide for proportionate releases in intervening years. All items of federal gross income arising from such installment transactions shall be deemed to be income from sources within the commonwealth.
(e) If installment transaction treatment under this paragraph is elected for any taxable year the federal gross income of such taxable year shall be further modified, for the purpose of applying section two by eliminating the effect of the treatment under section four hundred and fifty-three of the Code of all installment transactions of such taxable year. For each subsequent taxable year as to which an item of federal gross income is includable by any person with respect to such an installment transaction, the federal gross income of such person shall be modified, for purposes of applying section two, by reducing federal gross income by the sum of all such items.
Chapter 62: Section 64. Optional tax table Section 64. In lieu of computing the taxes imposed by this chapter, a taxpayer may, at his option except as hereinafter provided, determine his tax liability for each class of income in accordance with a tax table prepared by the commissioner and approved by the commissioner. The tax for each bracket of such table shall be computed upon the median of the taxable income for such bracket and shall be computed to the nearest whole dollar. The size of the brackets of taxable income shall be determined by the commissioner and approved by the commissioner. After arriving at the total tax from the applicable tables, the taxpayer shall deduct therefrom the total rounded to the nearest whole dollar of his withheld taxes and payments of his estimated taxes and the credits to which he is entitled. The commissioner may require taxpayers having taxable income within such limits as he may prescribe to use the tax tables for the computation of their tax liabilities under this chapter.
BUSINESS Chapter 62: Section 6A, 6B. Repealed, 1971, 555, Sec. 5 BUSINESS Chapter 62: Section 6C. Massachusetts State Election Campaign Fund; voluntary contributions Section 6C. Every individual who files a separate return may voluntarily contribute one dollar to be paid over to the State Election Campaign Fund, established by section forty-two of chapter ten. In the case of a joint return of husband and wife, each spouse may voluntarily contribute one dollar to said fund. A credit in the full amount of any contribution under this section shall be allowed against the tax imposed by this chapter; provided, that for any such return no such credit shall exceed the income tax liability for any taxable year.
A contribution made under this section may be made with respect to any taxable year at the time of filing the return of the tax imposed by this chapter for such taxable year; provided, however, that the commissioner shall prescribe the manner in which such contribution shall be made on the face of the return required by section five of chapter sixty-two C.
The provisions of this section shall apply only to residents required to file a return under this chapter.
For purposes of this section the words “income tax liability for any taxable year” shall mean the amount of tax imposed by this chapter reduced by sum of the credits allowed by clause (a) of section six.
BUSINESS Chapter 62: Section 6D. Natural Heritage and Endangered Species Fund; contributions Section 6D. Every individual who files a separate return and every husband and wife filing a return jointly may voluntarily contribute all or part of any refund to which they are entitled or may voluntarily add an amount onto any amount due to be credited to the Natural Heritage and Endangered Species Fund. At the beginning of each fiscal year, subject to appropriation, one dollar shall be credited from the General Fund to the Natural Heritage and Endangered Species Fund for each dollar contributed by the public in the prior fiscal year under the provisions of this section. The commissioner of the department of revenue shall certify to the state comptroller total revenues contributed to the Natural Heritage and Endangered Species Fund by individuals in the prior fiscal year.
A contribution made under this section may be made with respect to any taxable year at the time of filing the return of the tax imposed by this chapter for such taxable year; provided, however, that the commissioner shall prescribe the manner in which such contribution shall be made on the face of the return required by section five of chapter sixty-two C.
The commissioner shall annually report the total amount designated under this section to the state treasurer who shall credit such amount, plus accrued interest, to the Natural Heritage and Endangered Species Fund.
BUSINESS Chapter 62: Section 6E. Organ Transplant Fund; voluntary contributions Section 6E. Every individual who files a separate return and every husband and wife filing a return jointly may voluntarily contribute all or part of any refund to which they are entitled or may voluntarily add an amount onto any amount due to be credited to the Organ Transplant Fund, established pursuant to section thirty-five E of chapter ten.
A contribution made under this section may be made with respect to any taxable year at the time of filing a return of the tax imposed by this chapter for such taxable year; provided, however, that the commissioner shall prescribe the manner in which such contribution shall be made on the face of the return required by section five of chapter sixty-two C.
The commissioner shall annually report the total amount designated under this section to the state treasurer who shall credit such amount to said Organ Transplant Fund.
BUSINESS Chapter 62: Section 6F. Gross income; determination of capital gains; basis of property Section 6F. (a) In determining Massachusetts gross income, if the federal gross income includes any item of gain or has been reduced by any item of loss, with respect to property, then the federal gross income shall be increased by the excess of the federal adjusted basis of such property over the Massachusetts adjusted basis thereof, and shall be decreased by the excess of the Massachusetts adjusted basis of such property over the federal adjusted basis thereof.
(b)(1) The Massachusetts initial basis of property held on December thirty-first, nineteen hundred and seventy shall be determined as follows:—(A) In the case of property as to which, if it had been sold on December thirty-first, nineteen hundred and seventy in the course of business, a gain realized on such sale would have been taxable under this chapter to its then owner:(i) The Massachusetts initial basis shall, for purposes of computing gain, be its adjusted basis as computed under this chapter as in effect on December thirty-first, nineteen hundred and seventy, and(ii) The Massachusetts initial basis shall, for the purpose of computing loss, be the lower of the basis computed under clause (i) of this subparagraph or the federal adjusted basis for the determination of loss as of such date.
(B) In the case of any other property the Massachusetts initial basis shall be its federal adjusted basis on such date, determined without regard to any federal adjustment made under section one thousand and fifteen (d) of the Code.
(2) The Massachusetts initial basis of property acquired after December thirty-first, nineteen hundred and seventy shall be determined as follows:—(A) If the taxpayer’s federal basis of the property at acquisition is determined without regard to the basis of such property in the hands of the transferor or of other property in the hands of the transferee, hereinafter called the “basis of prior property”, the Massachusetts initial basis shall be the federal basis, determined without regard to any federal adjustment made under section one thousand and fifteen (d) of the Code.
(B) If such federal basis is determined in whole or in part by application of the basis of prior property, and(i) if no item of gain is includible in federal gross income and federal gross income has not been reduced by any item of loss, with respect to the transaction, the Massachusetts initial basis shall be the initial federal basis, increased by the excess of the Massachusetts adjusted basis over the federal adjusted basis of prior property, or decreased by the excess of the federal adjusted basis over the Massachusetts adjusted basis of prior property, or(ii) otherwise, the Massachusetts initial basis shall be the initial federal basis of the acquired property.
(C) Notwithstanding subparagraphs (A) and (B), in the case of property acquired from a decedent within the meaning of section one thousand and fourteen (b) of the Code, the initial basis of such property shall be determined under section one thousand and fourteen of the Code, without reference to section one thousand and fourteen (d) of the Code; except that in the case of an election under section five of chapter sixty-five C, the initial basis shall be its value determined under the provisions of such section on the applicable valuation date.
(c)(1) The Massachusetts adjusted basis of property shall be the Massachusetts initial basis of property adjusted by applying the same adjustments as are made to the federal basis for periods after determination of the initial basis, except as hereinafter provided.
(2) There shall be disregarded any federal adjustment resulting from provisions of the Code that were not applicable in determining Massachusetts gross income at the time such federal adjustments were made, and(3) Adjustments shall be made for any item which was applicable in determining Massachusetts gross income but which was not so applicable in determining federal gross income and for which a federal adjustment would be allowed under the provisions of the Code if the item had been applicable in determining federal gross income.
(4) There shall be disregarded, and the federal basis shall be modified to the extent necessary to disregard, any federal adjustment under section one thousand and fifteen (d) of the Code.
(d) The rules prescribed in this section shall apply to non-residents; except that if any non-resident has owned any items of property during a period when the income or gains from such items were not subject to taxation under this chapter, and if the income or gains from such items subsequently became or become subject to taxation under this chapter, then the special limitations of subparagraphs (2) to (4), inclusive, of paragraph (c) of this section shall not apply as to such period.
BUSINESS Chapter 62: Section 6G. Massachusetts AIDS Fund; voluntary contributions Section 6G. Every individual who files a separate return and every husband and wife filing a return jointly may voluntarily contribute all or part of any refund to which they are entitled, or may voluntarily add an amount onto any amount due, to be credited to the Massachusetts AIDS Fund established pursuant to section thirty-five K of chapter ten.
A contribution made under this section may be with respect to any taxable year at the time of filing a return of the tax established by this chapter for such taxable year; provided, however, that the commissioner shall prescribe the manner in which such contribution shall be made on the face of the return required by section five of chapter sixty-two C; and provided, further, that the commissioner shall assure that taxpayers filing any such forms are made clearly aware of their ability to make the contributions provided for by this section.
The commissioner shall annually report the total amount designated under this section to the state treasurer, who shall credit such amount to said Massachusetts AIDS Fund.
BUSINESS Chapter 62: Section 6H. Massachusetts United States Olympic Fund; voluntary contributions Section 6H. Every individual who files a separate return and every husband and wife filing a return jointly may voluntarily contribute all or part of any refund to which they are entitled, or may voluntarily add an amount onto any amount due, to be credited to the Massachusetts United States Olympic Fund established pursuant to section thirty-five O of chapter ten.
A contribution made under this section may be with respect to any taxable year at the time of filing a return of the tax established by this chapter for such taxable year; provided, however, that the commissioner shall prescribe the manner in which such contribution shall be made on the face of the return required by section five of chapter sixty-two C; provided, further, that the commissioner shall assure that taxpayers filing any such forms are made clearly aware of their ability to make the contributions provided for by this section.
The commissioner shall annually report the total amount designated under this section to the state treasurer, who shall credit such amount to said Massachusetts United States Olympic Fund.
BUSINESS Chapter 62: Section 6I. Low-income housing tax credit Section 6I. (a) For the purposes of this section, unless the context clearly requires otherwise, the following words shall have the following meanings:-“Commissioner”, the commissioner of revenue.
“Compliance period”, the period of 15 taxable years beginning with the first taxable year the Massachusetts low-income housing tax credit is claimed.
“Department”, the department of housing and community development, or its successor agency.
“Eligibility statement”, a statement authorized and issued by the department certifying that a given project is a qualified Massachusetts project. The department shall, in consultation with the commissioner, promulgate regulations establishing criteria upon which the eligibility statements will be issued. The eligibility statement shall specify the maximum annual amount of the Massachusetts low-income housing tax credit authorized. The department shall only authorize the tax credits to qualified Massachusetts projects which are placed in service on or after January 1, 2001.
“Federal low-income housing tax credit”, the federal tax credit as provided in section 42 of the 1986 Internal Revenue Code, as amended and in effect for the taxable year.
“Low-income project”, a qualified low-income housing project, as defined in section 42 of the 1986 Internal Revenue Code, as amended and in effect for the taxable year, which has restricted rents that do not exceed 30 per cent of applicable imputed income limitation under said section 42 of said Code, for at least 40 per cent of its units occupied by persons of families having incomes of 60 per cent or less of the median income, or at least 20 per cent of the units occupied by persons or families having incomes of 50 per cent or less of the median income.
“Median income”, the area median gross income as such term is used in section 42 of the 1986 Internal Revenue Code as amended and in effect for the taxable year, and which is determined by the federal department of housing and urban development guidelines and adjusted for family size.
“Qualified Massachusetts project”, a qualified low-income housing project as that term is defined in section 42 of the 1986 Internal Revenue Code, as amended and in effect for the taxable year, which is located in the commonwealth, which meets the requirements of this section, and whose owner enters into a regulatory agreement with the department enforceable by state and local agencies.
“Regulatory agreement”, an agreement between the owner of the qualified Massachusetts project and the department and recorded as an affordable housing restriction under chapter 184 with the registry of deeds in the county where the property is located that requires the project to be operated in accordance with the requirements of this section for not less than 30 years from the expiration date of the compliance period. Such agreement may be subordinated to the lien of a bank or other institutional lender providing financing to the qualified Massachusetts project, upon the request of such bank or lender.
“Taxpayer”, a person, firm, partnership or other entity subject to the income tax imposed by the provisions of this chapter.
(b)(1) There is hereby established a Massachusetts low-income housing tax credit. The department may authorize annually, for the 10 year period beginning January 1, 2001, and ending December 31, 2010, under this section together with section 31H of chapter 63, the total sum of: (1) the lesser of 50 per cent of the federal per capita tax credits awarded to the commonwealth pursuant to section 42 of the 1986 Internal Revenue Code, as amended and in effect for the taxable year, or $4,000,000; (2) unused Massachusetts low-income housing tax credits, if any, for the preceding calendar years; and (3) any Massachusetts low-income housing tax credits returned to the department by a qualified Massachusetts project.
(2) Unless otherwise provided in this section or the context clearly requires otherwise, the department shall authorize, administer, determine eligibility for the Massachusetts low-income housing tax credit and allocate the credit in accordance with the standards and requirements as set forth in section 42 of the 1986 Internal Revenue Code; provided, however, that the combined federal and Massachusetts low-income housing tax credit shall be the least amount necessary to ensure financial feasibility.
(3) The department shall allocate the total available Massachusetts low-income housing tax credit among as many qualified Massachusetts projects as fiscally feasible, with the goal of increasing the commonwealth’s stock of affordable housing units.
(c)(1) A taxpayer, if allocated a federal low-income housing tax credit with respect to a project, may be allowed a state tax credit with respect to the same qualified Massachusetts project, provided that the department issues an eligibility statement for that qualified Massachusetts project; provided further, that no credit shall be authorized related to a project that receives state financial assistance authorized under section 7A of chapter 244 of the acts of 2002. This state tax credit shall be termed the Massachusetts low-income housing tax credit.
(2) The total Massachusetts low-income housing tax credit available to a qualified Massachusetts project shall be authorized and allocated by the department, or its successor agency, based on the qualified Massachusetts project’s need for the credit for economic feasibility.
(3) The Massachusetts low-income housing tax credit shall be taken against the taxes imposed under this chapter, claimed equally for five years, subtracted from the amount of state tax otherwise due for each taxable period and shall not be refundable. Any amount of the low-income housing tax credit that exceeds the tax due for a taxable year may be carried forward to any of the five subsequent taxable years.
(4) All or any portion of tax credits issued in accordance with the provisions of this section may be allocated to parties who are eligible under the provisions of paragraph (1) of subsection (c). An owner of a qualified Massachusetts project shall certify to the commissioner the amount of credit allocated to such owner. The owner of the qualified Massachusetts project shall provide to the commissioner appropriate information so that the low-income housing tax credit can be properly allocated.
(5) In the event that recapture of Massachusetts low-income housing tax credit is required pursuant to paragraph (1) or (2) of subsection (d), any statement submitted to the commissioner as provided in subsection (c) shall include the proportion of the state credit required to be recaptured, the identity of each taxpayer subject to the recapture and the amount of credit previously allocated to such taxpayer.
(6)(i) A state tax credit allowed under this section shall not be denied to the taxpayer with respect to any qualified Massachusetts project merely by reason of a right of first refusal held by the tenants, in cooperative form or otherwise, or resident management corporation of such building or by a qualified nonprofit organization as defined in Section 42 of the 1986 Internal Revenue Code, as amended and in effect for the taxable year, or government agency, to purchase the qualified Massachusetts project after the close of the compliance period for a price which is not less than the minimum purchase price determined under subparagraph (ii).
(ii) The minimum purchase price shall be an amount equal to the sum of the principal amount of outstanding indebtedness secured by the building, other than indebtedness incurred within the five year period ending on the date of the sale pursuant to subparagraph (i), and all federal, state and local taxes attributable to such sale.
(7) The director of the department, in consultation with the commissioner, shall promulgate regulations necessary to administer the provisions of this paragraph.
(d)(1) The owner of a qualified Massachusetts project eligible for the Massachusetts low-income housing tax credit shall submit, at the time of filing the project owner’s state tax return, a copy of the eligibility statement issued by the department with respect to such qualified Massachusetts project. In the case of failure to attach the eligibility statement, a credit under this section shall not be allowed with respect to such qualified Massachusetts project for that year until the copy is provided to the department of revenue.
(2) If under Section 42 of the 1986 Internal Revenue Code, as amended, a portion of any federal low-income housing tax credits taken on a low-income project is required to be recaptured, the Massachusetts low-income housing tax credit authorized by this section with respect to such qualified Massachusetts project shall also be recaptured. The state recapture amount shall be equal to the amount of the state low-income housing tax credits previously claimed times a fraction, the numerator of which shall be the amount of recaptured federal low-income housing tax credits and the denominator of which shall be the amount of federal low-income housing tax credits previously claimed.
(e) The commissioner or the department, through the promulgation of regulations, may require the filing of additional documentation necessary to determine the eligibility or accuracy of a tax credit claimed under the provisions of this section.
(f)(1) All or any portion of tax credits issued in accordance with the provisions of this section may be transferred, sold or assigned to parties who are eligible under the provisions of paragraph (1) of subsection (c).
(2) An owner or transferee desiring to make a transfer, sale or assignment as described in paragraph (1) of subsection (f) shall submit to the commissioner a statement which describes the amount of Massachusetts low-income housing tax credit for which such transfer, sale or assignment of Massachusetts low-income housing tax credit is eligible. The owner shall provide to the commissioner appropriate information so that the low-income housing tax credit can be properly allocated.
(3) In the event that recapture of Massachusetts low-income housing tax credits is required pursuant to paragraph (1) or (2) of subsection (d), any statement submitted to the commissioner as provided in paragraph (2) of subsection (f) shall include the proportion of the Massachusetts low-income housing tax credit required to be recaptured, the identity of each transferee subject to recapture and the amount of credit previously transferred to such transferee.
(4) The commissioner, in consultation with the department, shall promulgate regulations necessary for the administration of the provisions of paragraph (f).
(g) The department, in consultation with the commissioner, shall monitor and oversee compliance with the Massachusetts low-income housing tax credit program and may promulgate regulations requiring the filing of additional documentation deemed necessary to determine continuing eligibility for the Massachusetts low-income housing tax credit. The department or the commissioner shall report specific occurrences of noncompliance to appropriate state, federal and local authorities.
(h) Except for unused credits carried forward pursuant to paragraph (3) of subsection (c) and paragraph (3) of subsection (c) of section 31H of chapter 63, and except for credits claimed under regulations promulgated by the department consistent with the special rule set forth in paragraph (2) of subsection (f) of section 42 of the 1986 Internal Revenue Code, as amended and in effect for the taxable year, a taxpayer shall not be eligible for any Massachusetts low-income housing tax credits for more than 11 taxable years.
(i) The department may provide that upon application for state tax credits issued by the department, such taxpayer may elect to receive such state tax credit in the form of a loan generated by transferring the credit to the department or its designee on terms specified by the department in accordance with its qualified allocation plan. Neither a direct tax refund nor a loan received as the result of the transfer of the credit shall be considered taxable income under this chapter.
(j) The department may pursue methods of enhancing the efficiency of the Massachusetts low-income housing tax credit program including but not limited to:— pursuing opinions from the United States department of treasury’s internal revenue service in the form of general counsel memoranda, private letter rulings and other notices, rulings or guidelines; by reviewing other state low income housing tax programs which utilize an option for taxpayers to receive such tax credit in the form of a loan generated by transferring the credit to a designated state entity; and any other such methods.
BUSINESS Chapter 62: Section 6J. Massachusetts historic rehabilitation tax credit [Text of section applicable to taxable years beginning on or after January 1, 2005. See 2004, 65, Sec. 54.
] Section 6J. (a) For purposes of this section, the following terms shall have the following meanings unless the context clearly requires otherwise:“Certified rehabilitation”, the rehabilitation of a qualified historic structure that has been approved and certified by the chairman of the Massachusetts historical commission as being consistent with the standards established by the Secretary of the United States Department of the Interior for rehabilitation of historic properties.
“Qualified historic structure”, any building or structure, located within the commonwealth that is individually listed on the National Register of Historic Places or is a contributing building within a district that is listed on the National Register of Historic Places or which has been determined by the Massachusetts historical commission to be eligible for listing on the National Register of Historic Places, and which all or any portion of which is owned, in whole or in part, by the taxpayer.
“Qualified rehabilitation expenditure”, any amount properly chargeable to a capital account and described in section 47(c)(2)(A)(i) of the Code, as amended and in effect for the taxable year, incurred in connection with the certified rehabilitation of a qualified historic structure, but the term shall not include personal property, personal use property or the cost of acquiring any building or interest thereon.
“Substantial rehabilitation” and “substantially rehabilitated”, the qualified rehabilitation expenditures of the building during the 24–month period selected by the taxpayer ending with or within the taxable year exceed 25 per cent of the taxpayer’s adjusted basis in such building and its structural components as of the beginning of such period. In the case of any rehabilitation that may reasonably be expected to be completed in phases set forth in architectural plans and specifications completed before the rehabilitation begins, the applicable period referred to in this paragraph shall be 60 months.
“Taxpayer”, a person, firm, partnership, trust, estate, limited liability company or other entity subject to the income tax imposed by the provisions of this chapter.
(b)(1) There shall be a Massachusetts historic rehabilitation tax credit.
(i) The commissioner, in consultation with the Massachusetts historical commission, shall authorize annually, for the 5 year period beginning January 1, 2005 and ending December 31, 2009, under this section together with section 38R of chapter 63, an amount not to exceed $15,000,000 per year. The Massachusetts historical commission shall determine the criteria for eligibility for the credit, such criteria to be set forth in regulations promulgated under this section; but, at least 25 per cent of the tax credits shall be allowed to projects that contain affordable housing whenever possible and consistent with such criteria.
(ii) A taxpayer that incurs qualified rehabilitation expenditures may be allowed a credit, to be computed as hereinafter provided, against the tax imposed by this chapter. The credit shall be equal to a percentage, not to exceed 20 per cent, of the qualified rehabilitation expenditures made by the taxpayer with respect to a qualified historic structure which has received final certification and has been placed in service as provided for in this section. The Massachusetts historical commission shall administer and determine eligibility for the Massachusetts rehabilitation tax credit and allocate the credit in accordance with this section; but, the Massachusetts historical commission may impose a fee for the processing of applications for the certification of any rehabilitation under the provisions of this section.
(2) The credit allowable under this section shall be allowed for the taxable year in which the substantially rehabilitated property is placed in service, that is, when occupancy of the entire structure or some identifiable portion of the structure is permitted. A taxpayer allowed a credit under this section for a taxable year may carry over and apply to the tax imposed by this chapter in any of the succeeding 5 taxable years, the portion, as reduced from year to year, of those credits which exceed the tax for the taxable year.
(i) Historic rehabilitation tax credits allowed to a partnership, a limited liability company taxed as a partnership or multiple owners of property shall be passed through to the persons designated as partners, members or owners, respectively, pro rata or pursuant to an executed agreement among the persons designated as partners, members or owners documenting an alternative distribution method without regard to their sharing of other tax or economic attributes of the entity.
(ii) Taxpayers eligible for the Massachusetts historic rehabilitation tax credit may, with prior notice to and in accordance with regulations adopted by the commissioner, transfer the credits, in whole or in part, to any individual or entity, and the transferee shall be entitled to apply the credits against the tax with the same effect as if the transferee had incurred the qualified rehabilitation expenditures itself. The transferee shall use the credit in the year it is transferred. If the credit allowable for any taxable year exceeds the transferee’s tax liability for that tax year, the transferee may carry forward and apply in any subsequent taxable year, the portion, as reduced from year to year, of those credits which exceed the tax for the taxable year; but, the carryover period shall not exceed 5 taxable years after the close of the taxable year during which the qualified historic structure received final certification and was placed in service as provided for in this section.
(c)(1) A certified rehabilitation shall require:(i) an initial certification by the Massachusetts historical commission that the structure meets the definition of qualified historic structure;(ii) a second certification by the Massachusetts historical commission, to be issued prior to construction, certifying that if completed as proposed, the rehabilitation work will meet the standards required for a certified rehabilitation; and(iii) a final certification by the Massachusetts historical commission, issued when construction is completed, certifying that the work was completed as proposed and that the costs are consistent with the work completed. Such final certification shall be acceptable as proof that the expenditures related to such construction qualify as qualified rehabilitation expenditures for purposes of the credit allowed under this section.
(2) A rehabilitation shall not be treated as complete before the date of the certification referred to in clause (iii) of paragraph (1).
(d) A taxpayer who leases his property shall be treated as the owner thereof if the remaining term of the lease as of the date determined under regulations prescribed by the department of revenue is not less than such minimum period as the regulations require.
[There is no subsection (e).
] (f) For any qualified historic structure, qualified rehabilitation expenditures applicable to the historical rehabilitation tax credit shall be treated for purposes of this section as made:(i) on the date substantial rehabilitation is completed, or(ii) to the extent provided by the commissioner of revenue by regulation, when such expenditures are properly chargeable to a capital account. Regulations under this paragraph shall include a rule similar to the rule under section 50(a)(2) of the Internal Revenue Code, as amended an in effect for the taxable year, relating to recapture if property ceases to qualify for progress expenditures.
(g)(1) If, before the end of the 5 year period beginning on the date on which the qualified historic structure received final certification and was placed in service, the taxpayer disposes of the taxpayer’s interest in the structure, the taxpayer’s tax for the taxable year in which the disposition occurs shall be increased by the recapture amount. Any carry forward credit shall be adjusted by reason of the disposition.
(2) For purposes of paragraph (1), the recapture amount shall equal the amount of the credit taken by the taxpayer, including any credit transferred by the taxpayer, minus the credit allowed for ownership, but not less than zero. The credit allowed for ownership shall be the product of the amount of credit allowed multiplied by a ratio, the numerator of which is the number of months the rehabilitated structure is owned by the taxpayer, and the denominator of which is 60.
(h) For purposes of this section, if a credit is allowed under this section for any expenditure with respect to any property, the increase in the basis of such property which would, but for this paragraph, result from such expenditure shall be reduced by the amount of the credit so allowed.
(i) The commissioner, in consultation with the Massachusetts historical commission, shall prescribe regulations necessary to carry out this section.
(j) Except for unused credits carried forward pursuant to paragraph (2) of subsection (b) of section 38R of chapter 63 and paragraph (2) of subsection (b) of this section, a taxpayer shall not be eligible for any historic rehabilitation tax credits for more than 5 taxable years.
BUSINESS Chapter 62: Section 7. Repealed, 1979, 409, Sec. 4 BUSINESS Chapter 62: Section 7A, 7B. Repealed, 1971, 555, Sec. 5 Chapter 62: Section 8. Taxable income of corporate trusts; application of section; dividends; exemption Section 8. (a) A corporate trust engaged within the commonwealth in any business, activity or transaction, whether or not it maintains an office or place of business within the commonwealth, shall be subject to the taxes imposed by this chapter unless exempted pursuant to paragraph (b).
[Second paragraph of paragraph (a) applicable to taxable years beginning on or after January 1, 2004. See 2004, 252, Sec. 67.
] The Massachusetts adjusted gross income of such corporate trust shall be redetermined as if it were a resident natural person; provided, however, that for purposes of any determination involving sections 311, 312, 332 to 338, inclusive or 346 to 368, inclusive, of the Code, any corporate trust shall be treated as a corporation. No deductions or exemptions allowable under Parts A, B or C of section 3 shall be allowed to a corporate trust. The taxable income of each Part shall be the Massachusetts adjusted gross income of such Part allocated or apportioned to Massachusetts in accordance with section 38 of chapter 63.
[Paragraph (b) effective for tax years beginning on or after January 1, 2003. See, 2003, 4, Sec. 86. For text applicable to taxable years beginning on or after January 1, 2004, see below.
] (b) Paragraph (a) shall not apply to a corporate trust which: (i) is a regulated investment company under section 851 of the Code or a real estate investment trust under section 856 of the Code; (ii) is a holding company as hereinafter defined; (iii) is exempt under subdivision (1) or (2) of section 23 of chapter 32; or (iv) has made a valid election for the taxable year to be treated as a real estate mortgage investment conduit, as defined in section 860D of the Code for federal income tax purposes. As used in this paragraph, the term “holding company” shall mean a corporate trust in which 90 per cent of the book value of its assets, at the end of the taxable year, are securities and at least 75 per cent of such securities are issued by affiliates and at least 90 per cent of its Massachusetts gross income is Part A gross income and Part C gross income; the word “affiliate” shall mean a member of an affiliated group as defined under section 1504 of the Code; and the word “securities” shall mean transferable shares of beneficial interest in a corporation or other entity, bonds or debentures of an issuer or notes and other evidences of indebtedness of affiliates.
[Paragraph (b) applicable to taxable years beginning on or after January 1, 2004. See 2004, 262, Sec. 67. For text effective for tax years beginning on or after January 1, 2003, see above.
] (b) Paragraph (a) shall not apply to a corporate trust which: (i) is a regulated investment company under section 851 of the Code or a real estate investment trust under section 856 of the Code; (ii) is exempt under subdivision (1) or (2) of section 23 of chapter 32 ; (iii) has made a valid election for the taxable year to be treated as a real estate mortgage investment conduit, as defined in section 860D of the Code for federal income tax purposes; or (iv) would qualify as a holding company under this paragraph in effect on December 31, 2003 and on such date was a holding company under the Public Utility Holding Company Act of 1935.
(c) Dividends on shares of any corporate trust subject to taxation under this chapter shall be exempt from taxation except as hereinafter provided. Any earnings and profits accumulated prior to taxable years commencing after December thirty-first, nineteen hundred and seventy, and during a period, if any, that such corporate trust was not subject to taxation under this chapter solely by reason of the fact that it had elected not to file with the commissioner an agreement to pay a tax shall be considered tax-free earnings and profits and the amount thereof shall be determined as of the first day of the first taxable year commencing after December thirty-first, nineteen hundred and seventy. Any earnings and profits accumulated for taxable years commencing after December thirty-first, nineteen hundred and seventy, to the extent that such earnings and profits were not subject to tax under this chapter, shall also be considered tax-free earnings and profits. In the case of a corporate trust doing business both within and outside of the commonwealth and subject to tax under this section, dividends received by shareholders who are Massachusetts residents shall be deemed to have been made from tax-free earnings and profits to the extent that the earnings and profits of the trust are not apportioned to the commonwealth and subject to tax under paragraph (a) but such shareholders shall be entitled to credit for income taxes paid to other jurisdictions on such earnings and profits, either by the shareholders or by the corporate trust, as provided under subsection (a) of section 6. Notwithstanding any other provision of this chapter, dividends paid by any corporate trust at any time while it has tax-free earnings and profits, as so determined, shall be deemed to have been made from such tax-free earnings and profits to the extent thereof; and any such dividends deemed to have been made from tax-free earnings and profits shall be includable in Massachusetts gross income, and the deduction provided for in section two (a)(2)(D) shall not apply to such dividends. Except for dividends paid from tax-free earnings and profits, all such dividends shall be exempt from taxation.
Dividends on shares of any corporate trust subject to taxation under this chapter and which is a federal S corporation shall also be exempt from taxation in the manner described above.
Chapter 62: Section 9. Estates of deceased persons Section 9. Estates of deceased persons, if assessed within the time limited by section twenty-six of chapter sixty-two C, shall be subject to the taxes imposed by this chapter upon all income received by such persons during their lifetime, except that estates of deceased persons who were nonresidents at the time of their death shall be subject only to the taxes imposed by section five A.
The income received by the estates of deceased residents shall be subject to all the taxes imposed by this chapter to the extent that the persons to whom such income is payable, or for whose benefit it is accumulated are residents of the commonwealth; provided, however, if the income received by such estates would be subject to taxation under section five A if received by a nonresident, such income shall be taxable regardless of whether or not the persons to whom such income is payable or for whose benefit it is accumulated are residents or nonresidents of the commonwealth. The income received by the estates of deceased non-residents shall be taxed at the same rate and in the same manner as provided in section five A, and subject to the same exemptions and deductions. Such income shall include as and when received by the executor or administrator all income taxable under this chapter which would have been taxable to the decedent if he had survived to receive it, and the taxes upon such income as shall have become a part of the corpus of his estate under the rules of probate accounting, may be charged against principal in any accounting made by the executor or administrator. All taxes under this section shall be assessed to the executor or administrator and before the appointment of an executor or administrator said taxes may be assessed in general terms to the estate of the deceased and the executor or administrator subsequently appointed shall be liable for the taxes so assessed as though they were assessed to him. No person shall be taxed under this chapter for income received from any executor or administrator which income has itself been taxed under this section.
Chapter 62B: Section 1. Definitions Section 1. The following words as used in this chapter shall, unless the context otherwise requires, have the following meanings:—“Commissioner”, the commissioner of revenue.
“Internal Revenue Code”, the Internal Revenue Code of the United States as amended and in effect for the applicable year;“Employer”, employer as defined in section thirty-four hundred and one (d) of the Internal Revenue Code;“Employee”, employee as defined in section thirty-four hundred and one (c) of the Internal Revenue Code, except full time students engaged in seasonal, temporary or part-time employment whose estimated annual income would not exceed two thousand dollars.
“Wages”, for withholding purposes only, wages as defined in section thirty-four hundred and one (a) of the Internal Revenue Code, periodic payments and nonperiodic distributions as defined in section thirty-four hundred and five of said Code and subject to federal withholding, and contributions paid by the employer on behalf of the employee pursuant to subdivision ten of section twenty-two of chapter thirty-two or pursuant to paragraph (i) of section sixty-five D of chapter thirty-two and not otherwise included as wages above.
WITHHOLDING OF TAXES ON WAGES Chapter 62B: Section 10. Employer’s liability Section 10. An employer shall be liable for the payment of the tax required to be withheld under section two, and shall not be liable, except as provided in section five, to any person for the amount of any such payment.
WITHHOLDING OF TAXES ON WAGES Chapter 62B: Section 11. Repealed, 1983, 233, Sec. 29 WITHHOLDING OF TAXES ON WAGES Chapter 62B: Section 11A. Penalties Section 11A. In addition to any criminal penalty provided by law, if (1) any individual makes a statement under section four which results in a decrease in the amount deducted or withheld under this chapter, and (2) as of the time of such statement was made, there was no reasonable basis for such statement, such individual shall pay a penalty of five hundred dollars for such statement.
Said penalty shall be paid upon notice by the commissioner and shall be assessed and collected in the same manner as a tax.
The commissioner may waive, in whole or in part, the penalty imposed under this section if the taxes imposed with respect to the individual under chapter sixty-two for the taxable year are equal to or less than the sum of the credits against such taxes allowed by chapter sixty-two and this chapter.
WITHHOLDING OF TAXES ON WAGES Chapter 62B: Section 12. Effect of payment Section 12. All taxes deducted and withheld by an employer and paid over to the commissioner pursuant to section five shall be deemed and credited as payments on account of the tax imposed on income for the taxable year under chapter sixty-two.
WITHHOLDING OF TAXES ON WAGES Chapter 62B: Section 12A. Repealed, 1986, 488, Sec. 40 DECLARATION OF ESTIMATED INCOME TAX Chapter 62B: Section 13. Amount of estimated tax [Text of section applicable to tax years beginning on or after January 1, 2005. See 2004, 262, Sec. 72.
] Section 13. Every taxpayer who in any taxable year can reasonably expect to receive income taxable under chapter sixty-two from sources other than wages upon which a tax is required to be withheld under section two and for whom the amount of estimated tax is more than $400 shall make payments of estimated tax pursuant to section fourteen. For the purposes of this section, the amount of estimated tax shall be the amount which the taxpayer estimates as the tax due under chapter sixty-two with respect to the taxable year reduced by the total amount of the credits allowed under section 6 of chapter 62 to which the taxpayer estimates he will be entitled and further reduced by the amount which the taxpayer estimates as the credits to which he will be entitled under section nine for taxes withheld during the taxable year.
DECLARATION OF ESTIMATED INCOME TAX Chapter 62B: Section 14. Underpayment of estimated tax; installments Section 14. (a) Except as otherwise provided in this section, in the case of any underpayment of estimated tax, there shall be added to the tax due under chapter sixty-two for the taxable year an amount determined at the rate but without daily compounding and on a per annum basis established under section thirty-two of chapter 62C upon the amount of the underpayment for the period of underpayment.
(b) For purposes of subsection (a), the amount of the underpayment shall be the excess of the required installment, over the amount, if any, of the installment paid on or before the due date for the installment; and the period of the underpayment shall run from the due date for the installment to the fifteenth day of the fourth month following the close of the taxable year, or, with respect to any portion of the underpayment, the date on which such portion is paid, whichever is the earlier. A payment of estimated tax shall be credited against unpaid required installments in the order in which such installments are required to be paid.
(c) For purposes of this section, there shall be four required installments for each taxable year. The first installment shall be paid on April fifteenth of the taxable year, the second on June fifteenth of the taxable year, the third on September fifteenth of the taxable year, and the fourth on January fifteenth of the succeeding taxable year. The amount of any required installment shall be twenty-five per cent of the required annual payment. The term “required annual payment” means the lesser of(i) eighty per cent, or sixty-six and two-thirds per cent in the case of a farmer or fisherman as defined in subsection (h), of the tax shown on the return for the taxable year or, if no return is filed, eighty or sixty-six and two-thirds per cent, as the case may be, of the tax for such year, or(ii) one hundred per cent of the tax shown on the return of the taxpayer for the preceding taxable year, provided the taxpayer filed a return for the preceding taxable year and such preceding year was a taxable year of twelve months.
In the case of any required installment, if the taxpayer establishes that the annualized income installment is less than the amount determined under this subsection, the amount of such required installment shall be the annualized income installment, and any reduction in a required installment resulting therefrom shall be recaptured by increasing the amount of the next required installment or installments. The annualized income installment shall be based upon an estimated tax computed by placing on an annualized basis the taxable income for months in the taxable year ending before the due date for the installment.
(d) No addition to tax shall be imposed under subsection (a) for any taxable year if—[Clause (i) of subsection (d) applicable to tax years beginning on or after January 1, 2005. See 2004, 262, Sec. 72.
] (i) the tax shown on the return for the taxable year less the amount of the credits allowed by section 9 of this chapter and section 6 of chapter 62 is less than $400 or, if no return is filed, the amount of tax less the amount of the credits allowed by section 9 of this chapter and section 6 of chapter 62 is less than $400.
(ii) the preceding taxable year was a taxable year of twelve months, the taxpayer did not have any liability for tax for the preceding taxable year, and the taxpayer was an inhabitant of the commonwealth throughout the preceding taxable year.
(e) No addition to tax shall be imposed under subsection (a) with respect to any underpayment—(i) to the extent the commissioner determines that by reason of casualty, disaster, or other unusual circumstances the imposition of such addition to tax would be against equity and good conscience; or(ii) if the commissioner determines that the taxpayer retired after having attained age sixty-two or became disabled in the taxable year for which estimated payments were required to be made or in the taxable year preceding such taxable year, and such underpayment was due to reasonable cause and not to willful neglect.
(f) For the purpose of applying this section the estimated tax shall be computed without any reduction for the amount which the individual estimates as his credit under section nine, and the amount of the credit allowed under said section nine for the taxable year shall be deemed a payment of estimated tax, and an equal part of such amount shall be deemed paid on each installment date, as indicated in subsection (c), unless the taxpayer establishes the dates on which all amounts were actually withheld, in which case the amounts so withheld shall be deemed payments of estimated tax on the dates on which such amounts were actually withheld.
(g) For the purposes of this section, the term “tax” means the tax imposed by chapter sixty-two and by any act in addition thereto, reduced by the credits against tax allowed by section six of said chapter sixty-two.
(h) If, on or before March first of the following taxable year, a taxpayer who is a farmer or fishermen files a return for the taxable year and pays in full the amount computed on the return as payable then no addition to tax shall be imposed under subsection (a) with respect to any underpayment of estimated tax required to be made under this section. For the purposes of this subsection, an individual is a farmer or fisherman for any taxable year if his gross income from farming or fishing for the taxable year, or as shown
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