COVID-19: Massachusetts Provides Municipalities Option to Offer Property Tax Relief | Practical Law

COVID-19: Massachusetts Provides Municipalities Option to Offer Property Tax Relief | Practical Law

In response to the COVID-19 pandemic, Massachusetts has granted municipalities the authority to extend the due date for fiscal year 2020 real and personal property taxes and waive interest and penalties for late payment of taxes, assessments, and other charges.

COVID-19: Massachusetts Provides Municipalities Option to Offer Property Tax Relief

Practical Law Legal Update w-024-9139 (Approx. 3 pages)

COVID-19: Massachusetts Provides Municipalities Option to Offer Property Tax Relief

by Practical Law Real Estate
Published on 07 Apr 2020 • Massachusetts
In response to the COVID-19 pandemic, Massachusetts has granted municipalities the authority to extend the due date for fiscal year 2020 real and personal property taxes and waive interest and penalties for late payment of taxes, assessments, and other charges.
In response to the 2019 novel coronavirus disease (COVID-19) pandemic, Massachusetts passed House Bill 4598 – An Act to Address Challenges Faced By Municipalities and State Authorities Resulting From COVID-19 (the Act). The Act authorizes municipalities to:
  • Extend fiscal year 2020 real and property tax due dates to no later than June 1, 2020.
  • Waive interest and penalties for late payment of any excise, tax, betterment assessment, water rate or annual sewer use or other charge that was due on or after March 10, 2020, as long as the excise, tax, assessment or charge is paid by or before June 30, 2020.
Regardless of whether any municipality chooses to waive interest or penalties under the Act, the Act also prohibits municipalities from terminating essential services of residents for nonpayment of a tax or fee with a due date after March 10, 2020 if:
  • The resident pays the tax or fee before June 30, 2020.
  • The resident demonstrates an inability to pay due to circumstances related to the outbreak of COVID-19 or the governor's March 10, 2020 declaration of a state of emergency.
To demonstrate inability to pay, a resident must demonstrate a financial hardship, including but not limited to:
  • Loss of employment.
  • Serious illness of someone within the home.
  • Death of someone within the home.
For purposes of the Act, "essential service" includes, but is not limited to:
  • Water.
  • Trash collection.
  • Electricity.

Practical Implications

The evolving COVID-19 pandemic, the mandated closures or reductions of operations for businesses, and the growing number of layoffs are creating financial hardship for many businesses and individuals (see Practice Note, COVID-19: Select State and Local Business Closures Tracker). The Act provides protections to individuals who can demonstrate financial hardship due to the COVID-19 pandemic, even in municipalities that do not choose to implement the due date extension or late payment penalty wavers authorized by the Act.
For a collection of resources related to global coronavirus, COVID-19, pandemics, and business interruption content, see Global Coronavirus Toolkit.