subject: Massachusetts Towns Cracking Down On Delinquents [print this page] A number of communities south of Boston, Massachusetts are coming down on property tax delinquents. In Bridgewater, MA, a wall of shame was created to humiliate debtors by using with postings on a website naming local tax evaders with bills that predated 2006. Authorities think that they can shame and embarrass delinquents into collecting the $1.6 million that the town is owed.
A little way down the road in Holbrook, the treasurer-collector claims that he might auction municipal tax debts to third-party debt collectors. A move like this would recover some of the $4 million in real estate taxes that the town is owed up front. The Milton treasurer-collector recently paid to have a local newspaper publish the names of the top seven tax evaders in town, as a ploy to embarrass them, and a warning to others, that they too better foot the bill. This measure has rapidly brought in close to $1 million in tax debts.
In the tough times of the recession, towns like this turn to any source of money that they can find. Bridgewater does not have the cash flow to follow standard procedure for back tax collection. This means publishing the tax list in the newspaper and placing liens on the unpaid amounts on deeds in the county registry.
Standard efforts for the back tax collection are in motion; delinquents will receive a warning letter for the last time next month. After this, the town could be more aggressive and sell the debts to third party collectors. Those in charge aren't sure if this is the best option however, seeing as local collectors know the whereabouts and personal situations of the debtors better than a third party collector.
Towns striving to get back real estate taxes might also work with the homeowner's mortgage holder and let them know about the debt. The banks will typically pay the sum and then tack it into the mortgage.
