Southern Essex District Register of Deeds John O’Brien has requested the Massachusetts Department of Revenue sue mortgage giants Fannie Mae and Freddy Mac on his behalf for back excise tax. 

O’Brien contends the GSEs owe $4.2 million in excise taxes on property transfers in his district  alone. Since 1991, Fannie Mae and Freddy Mac have been involved in property transfers with total sales values of over $920 million the Southern Essex district, which would have generated approximately $4.2 million tax revenue if Fannie and Freddie had not claimed exemptions. O’Brian now contends that those exemptions were erroneously applied, citing recent court decisions in Michigan and Nevada which concluded that Fannie Mae and Freddy Mac were private enterprises and not government entities for tax purposes and therefore not entitled to an exemption from excise taxes.

"This lost revenue goes a long way in providing key services for the people of Massachusetts.  The message in our commonwealth to all those that think that they can circumvent the system should be loud and clear; pay like everyone else, or deal with the consequences," O’Brien said in a statement.