Hi everyone,
I have a question about interest calculation on a past due property tax bill in Massachusetts. I received a bill from the town collector that was due on 11/01/2017. Unfortunately, I forgot about it and paid it late. The billing cycle is quarterly. On or around 12/30/2017 the collector sent me a new bill that included past due amount, the amount due for the next quarter (due 2/1/2018), and 14% interest calculated from the past due amount. I paid the entire bill on 12/30/2017. The problem is that the interest on that bill was calculated for 92 days (11/1/17-2/1/18) and included the entire month of January. The question is should the collector have charged me the interest of 59 days (11/2-12/30) instead of 92 days? I think the relevant statute is MGL Chapter 59 Sec. 57 (https://malegislature.gov/Laws/Gener...er59/Section57). I see that the interest starts on the due date, but I can't find when should the interest stop to accumulate. Why am I paying interest for many days (12/30-2/1) on which there was no past-due balance?
I called tax collector, and the office told me that they bill the interest through the next billing cycle, which is 2/1/2018. When I asked why they are charging interest for days after the payment was maid, they said that they are not violating any laws and that is the way the system is set up. I used MCC online payment system if that matters. The confirmation email from MCC states "After the transaction has proven successful, the Collector will view the bill paid as of 12/30/2017. It will not be the date the transaction cleared."
Thanks.

