Published April 3, 2020
MELROSE — Ward 5 City Councilor Shawn MacMaster and Ward 1 City Councilor John Tramontozzi, the two most senior members of the Melrose City Council, have filed an order which would abolish penalties for the late payment of 2020 excise tax bills amid the COVID-19 pandemic. The order would prohibit the City’s Collector of Taxes from issuing fees, fines, and penalties of interest for failure to pay a motor vehicle excise tax by the March 30 due date.
Collection costs can easily total $89 for nonpayment, including interest at a rate of 12 percent from the day after the due date. The order would also preclude the Collector of Taxes from furnishing the name of delinquent taxpayers to the Registry of Motor Vehicles, which MacMaster and Tramontzzi say is overly punitive and can result in further financial hardship on Melrose residents.
“Some residents are no doubt struggling to pay bills in light of the economic hardship associated with the COVID-19 crisis,” said MacMaster. “Putting food on the table and paying household utilities and other essential bills is hard enough during this time; but when you add an arbitrary tax with a rigid, regressive penalty structure to the mix — one that disproportionately affects the unemployed, low-income individuals, and senior citizens living on fixed incomes — it makes it all the more difficult for people to manage. This order is a common sense measure designed to alleviate some of the strain that our taxpayers may be experiencing.”
According to MacMaster and Tramontozzi, the order is not a tax deferment, but rather a “tax delay,” which would only apply to the 2020 excise tax bill. If passed, it would be in effect for 18 months after which time fees and interest would be permitted in accordance with state law until a bill is paid in full. “As a community, we stand together in challenging times and this measure reflects the commitment we have to support each other, especially those most vulnerable to financial hardship,” said Tramontozzi.
MacMaster and Tramontozzi stress that residents who can afford the tax, but have yet to pay it, should submit payment as soon as possible, citing that the order is meant to provide relief to those most in need, and that the city relies on excise tax revenue to provide public services. The order, which was filed with the City Clerk on March 26, will be on the agenda of the April 6 City Council meeting. From there, it will be sent to Committee where it will be debated on a later date.
