Melrose Residents Getting Break On Some Late Fees

MELROSE, MA — Residents are going to get some local tax relief thanks to two orders that aim to soften the blow for late payments.

The orders say demand notices for vehicle excise tax and property tax would be reduced from $15 to $5 for nine months and the city won't notify the Registry of Motor Vehicles of nonpayment through the end of the year.

The orders, put forth by Councilors Shawn MacMaster and John Tramontozzi and unanimously recommended at Monday night's Appropriations Committee meeting, are only for this year to help combat economic hardships brought on by COVID-19. They are expected to pass at the next City Council meeting.

"If you look at those who are suffering the hardest right now, and if you look, more generally, to history as guide, you’ll see that those who are injured most by tax collection measures are those who can’t afford — both literally and figuratively — to be injured any more than they already are by structural inequities," MacMaster said.

Mayor Paul Brodeur expressed his opposition to the excise tax order in a letter to MacMaster and Tramontozzi, noting the city uses excise tax revenue to fund city services.

Brodeur said the city already demands $15 less than it is allowed to for late fees. He also was opposed to forfeiting the city's ability to make sure overdue excise taxes are collected via notifying the RMV.

"As Mayor, I believe it is unwise to cede in all circumstances the only leverage the City has to collect much needed revenue from those who are able to meet their obligation," Brodeur said.

MacMaster called that a "red herring," as the order does not waive the excise tax, but rather lessens the blow of a late fee and keeps the state from being notified for nine months — but not forever.

MacMaster said Monday the most conservative estimate has the city potentially missing out on $41,110 of excise tax fees, a figure that he said will almost certainly be smaller.

Brodeur already extended vehicle excise and property tax deadlines to June 1 and waived the interest and penalties on late payments due after March 10 and paid before June 30 for excise, water or sewer, and other bills and taxes.

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