By Bob Katzen

The Senate 39-0, approved an amendment that would prohibit cities and towns that foreclose on properties on which the owner owes back property taxes, from keeping all of the profits when the city or town sells the property at auction. Current Massachusetts law allows this practice. The bill would allow the city or town to keep only the amount owed in back taxes and send the remainder to the owner.

Last year, the United States Supreme Court ruled that cities and towns that foreclose on properties on which the owner owes back property taxes, cannot keep all of the profits when the city or town sells the property at auction. Supreme Court Chief Justice John Roberts, writing a unanimous decision about a similar Minnesota law, said that “a taxpayer who loses her $40,000 house to the state to fulfill a $15,000 tax debt has made a far greater contribution to the public fisc than she owed.”

“For far too long my constituents, and homeowners across Massachusetts, have been robbed of their rightful equity by greedy profiteers and apathetic bureaucrats,” said Sen. Mark Montigny (D-New Bedford), the sponsor of the amendment. “The Supreme Court’s ruling last year, along with the Hampden Superior Court’s decision last month, brought new hope that this thievery would finally come to an end. The Senate has taken the lead on ending this injustice in Massachusetts and I am proud to ensure that we’ve taken this opportunity to provide strong protections for struggling homeowners who are often facing incredible challenges in their lives. Homeowners deserve relief and any municipality who has engaged in this predatory process should proactively refund the money to those aggrieved.”

(A “Yes” vote is for the amendment.)

Sen. Patricia Jehlen Yes