Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H2748 Compare Versions

Only one version of the bill is available at this time.

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2	2	HOUSE DOCKET, NO. 3561 FILED ON: 1/20/2023
3	3	HOUSE . . . . . . . . . . . . . . . No. 2748
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Mike Connolly
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act facilitating housing for all.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Mike Connolly26th Middlesex1/20/2023Bud L. Williams11th Hampden1/20/2023Lindsay N. Sabadosa1st Hampshire1/20/2023David Henry Argosky LeBoeuf17th Worcester2/23/2023 1 of 7
16	16	HOUSE DOCKET, NO. 3561 FILED ON: 1/20/2023
17	17	HOUSE . . . . . . . . . . . . . . . No. 2748
18	18	By Representative Connolly of Cambridge, a petition (accompanied by bill, House, No. 2748) of
19	19	Mike Connolly and others for legislation to establish a homelessness prevention and reduction
20	20	fund to be funded by taxes on gross receipts of business entities. Revenue.
21	21	[SIMILAR MATTER FILED IN PREVIOUS SESSION
22	22	SEE HOUSE, NO. 2855 OF 2021-2022.]
23	23	The Commonwealth of Massachusetts
24	24	_______________
25	25	In the One Hundred and Ninety-Third General Court
26	26	(2023-2024)
27	27	_______________
28	28	An Act facilitating housing for all.
29	29	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
30	30	of the same, as follows:
31	31	1 SECTION 1. Chapter 10 of the General Laws is hereby amended by inserting after
32	32	2section 35DDD the following section:-
33	33	3 Section 35FFF. (a) There shall be established and set up on the books of the
34	34	4commonwealth a separate fund to be known as the Housing First and Housing for All Fund,
35	35	5hereafter referred to as the Fund. The Fund shall consist of all revenues, including all taxes,
36	36	6penalties, interest and fees received by the commonwealth pursuant to chapter 63D. The state
37	37	7treasurer shall be the custodian of the Fund and shall credit interest and earnings on the Fund to
38	38	8the Fund. All amounts credited to the Fund shall be maintained separate and apart from all other
39	39	9funds and shall be subject to appropriation. Any balance remaining in the Fund at the close of 2 of 7
40	40	10any fiscal year shall be carried forward and accumulated in the Fund to be used in future fiscal
41	41	11years for the purposes described in subsection (b).
42	42	12 (b) Monies in the Fund shall be appropriated on an annual or supplemental basis and used
43	43	13exclusively for the following purposes:
44	44	14 (i) The administration or oversight of the housing first and housing for all gross receipts
45	45	15tax, hereafter referred to as the "gross receipts tax", established under chapter 63D; the
46	46	16administration and oversight of this Fund; and the administration of the annual reports required
47	47	17in subsection (c); provided, however, that no more than 3 per cent of total annual revenue from
48	48	18the gross receipts tax shall be expended for such purposes annually;
49	49	19 (ii) Refunds of any overpayments of the gross receipts tax, including any related
50	50	20penalties, interests, and fees; and
51	51	21 (iii) The prevention and reduction of homelessness and the elimination of barriers to
52	52	22quality affordable housing, including, but not limited to, programs that:
53	53	23 (A) help adults, families, or youth who are experiencing homelessness, including but not
54	54	24limited to people who are experiencing homelessness and have mental health conditions or are
55	55	25struggling with substance use, to permanently exit homelessness and secure permanent housing,
56	56	26including through Housing First Programs and wraparound services.
57	57	27 (B) ensure that unhoused persons with barriers to housing, including but not limited to a
58	58	28lack of identification and documentation, are able to access housing;
59	59	29 (C) provide rental subsidies for both short- and long-term rentals, including an expansion
60	60	30of the Massachusetts Rental Voucher Program; 3 of 7
61	61	31 (D) support the construction, acquisition, rehabilitation, lease, preservation, and operation
62	62	32of emergency, short-term and permanent housing units;
63	63	33 (E) provide onsite supportive services for formerly houseless adults, families, and youth;
64	64	34 (F) protect extremely low and very low-income households, especially households with
65	65	35seniors, veterans or persons with disabilities;
66	66	36 (G) provide financial, utility or rental assistance, including but not limited to assistance to
67	67	37address or cancel debts accrued during the COVID-19 state of emergency, as well as short-term
68	68	38case management, conflict mediation, right to counsel or other legal representation in eviction
69	69	39cases and cases in housing court, connections to public benefit agencies, housing search
70	70	40assistance, small landlord technical assistance programs, and other support services and
71	71	41programs relevant to ensuring guaranteed housing for all.
72	72	42 (H) provide mental and behavioral health services for unhoused individuals, including the
73	73	43acquisition or leasing of facilities to provide such services;
74	74	44 (I) support public investments in community land trusts, publicly-owned housing, social
75	75	45housing, deed-restricted affordable housing, limited equity cooperative housing, partnerships that
76	76	46increase the availability of affordable housing, municipal affordable housing trust funds, and
77	77	47programs that support the decommodification of housing, including but not limited to, the
78	78	48servicing of debt incurred by capital expenditures related to the acquisition, development,
79	79	49preservation, and rehabilitation of these types of housing.
80	80	50 (J) support down payment assistance and other programs for first-time and first-
81	81	51generation homebuyers to help address multigenerational inequities in access to homeownership. 4 of 7
82	82	52 (c) Not later than February 15, 2025 and every year thereafter, the commissioner of
83	83	53revenue shall report the amount remaining in the Fund from the previous fiscal year, an update of
84	84	54revenues for the current fiscal year and the estimates of revenues to be credited to the Fund in the
85	85	55subsequent fiscal year. The commissioner of revenue shall file this report with the secretary of
86	86	56administration and finance, the secretary of housing and economic development, the chair of the
87	87	57house committee on ways and means, the chair of the senate committee on ways and means, the
88	88	58chairs of the joint committee on housing and the chairs of the joint committee on revenue.
89	89	59 Beginning in fiscal year 2026 and each fiscal year thereafter, the state auditor shall issue
90	90	60a report on appropriations made from the Fund in the prior fiscal year. The auditor shall include
91	91	61in the report, at a minimum, the percentage of total appropriations intended for housing and
92	92	62housing support services drawn from the Fund as compared to appropriations for such purposes
93	93	63not drawn from the fund. The report shall compare the latter to appropriations made for such
94	94	64purposes in fiscal year 2024, which shall serve as the "base year''. If non-Fund appropriations for
95	95	65such purposes in the fiscal year for which the report is generated are significantly lower than the
96	96	66base year, after taking into account inflation, the state auditor shall note the discrepancy.
97	97	67 The state auditor may audit any organization or agency receiving appropriations from the
98	98	68Fund to ensure that the appropriations were used for their intended purpose. The state auditor
99	99	69shall submit all audit reports regarding the Fund to the secretary of administration and finance,
100	100	70the secretary of housing and economic development, the secretary of transportation, the chair of
101	101	71the house committee on ways and means, the chair of the senate committee on ways and means,
102	102	72the chairs of the joint committee on housing, and the chairs of the joint committee on revenue. 5 of 7
103	103	73 SECTION 2. The General Laws are hereby amended by adding the following chapter:-
104	104	74CHAPTER 63D.
105	105	75 HOUSING FIRST AND HOUSING FOR ALL GROSS RECEIPTS TAX
106	106	76 Section 1. For the purposes of this chapter, the following terms shall, unless the context
107	107	77clearly requires otherwise, have the following meanings:
108	108	78 "Business entity", any corporation, partnership, limited liability company, limited
109	109	79liability partnership or other such pass-through entity, or any individual, association or trust
110	110	80engaged in business in the commonwealth and subject to tax under chapters 62 or 63.
111	111	81 "Commissioner", the commissioner of revenue.
112	112	82 "Engaged in business in the commonwealth" shall have the same meaning as found in
113	113	83section 1 of chapter 63; provided, however, that it shall be construed to include individuals
114	114	84conducting such business activities as described in said section 1 of said chapter 63 but who are
115	115	85taxed under chapter 62.
116	116	86 "Gross receipts", shall: (i) include the total amounts received or accrued by a business
117	117	87entity from whatever source derived, including, but not limited to, amounts derived from sales,
118	118	88services, dealings in property, interest, rent, royalties, dividends, licensing fees, other fees,
119	119	89commissions and distributed amounts from other business entities. Except as otherwise
120	120	90specifically provided in this chapter, gross receipts includes but is not limited to all amounts that
121	121	91constitute gross income for federal income tax purposes. Except as otherwise specifically
122	122	92provided in this chapter, gross receipts includes all receipts, cash, credits and property of any
123	123	93kind or nature and including any amount for which credit is allowed by the seller to the 6 of 7
124	124	94purchaser, without any deduction therefrom on account of the cost of the property sold, the cost
125	125	95of materials used, labor or service costs, interest paid or payable, losses or any other expense
126	126	96whatsoever, except that cash discounts allowed or taken on sales shall not be included as gross
127	127	97receipts; (ii) with respect to any lease or rental, include payment for any services that are part of
128	128	98the lease or rental, whether received in money or otherwise, that are paid to, on behalf of, or for
129	129	99the benefit of, the lessor, and all receipts, cash, credits, property of any kind or character and the
130	130	100fair market value of services so paid or rendered by the lessee; (iii) not include the amount of any
131	131	101federal, state, or local tax imposed on or with respect to retail sales whether imposed upon the
132	132	102retailer or upon the purchaser and regardless of whether the amount of tax is stated as a separate
133	133	103charge, or such part of the sales price of any property previously sold and returned by the
134	134	104purchaser to the seller which is refunded by the seller by way of cash or credit allowances given
135	135	105or taken as part payment on any property so accepted for resale. Gross receipts shall also not
136	136	106include any federal, state or local tax imposed upon a business entity for which that business
137	137	107entity is reimbursed by means of a separately stated charge to a purchaser, lessee, licensee or
138	138	108customer. Gross receipts shall not include any amount of third-party taxes that a taxpayer
139	139	109collects from or on behalf of the taxpayer's customers and remits to the appropriate governmental
140	140	110entity imposing such tax. Gross receipts shall not include any tax refunds received by a business
141	141	111entity from a governmental entity. Gross receipts shall include any federal, state or local tax not
142	142	112specifically excluded; (iv) not include any amount received from or charged to any business
143	143	113entity that is a related entity to the taxpayer. Nor shall gross receipts include any grants received
144	144	114from governmental entities or any gifts. Any gross receipts of a pass-through entity which is
145	145	115subject to the gross receipts tax shall not also constitute gross receipts of any owner of that
146	146	116entity. 7 of 7
147	147	117 Section 2. Except as otherwise provided in this chapter, their shall be an annual 0.25 per
148	148	118cent tax on gross receipts of each business entity engaged in business in the commonwealth;
149	149	119provided, however, that there shall be an exemption on the first $50,000,000 of gross receipts
150	150	120received by each such business entity. This tax shall be known as the housing first and housing
151	151	121for all gross receipts tax and shall be referred to in this chapter as the "gross receipts tax".
152	152	122 Section 3. A business entity subject to the gross receipts tax under section 2 shall file
153	153	123returns at the same time and in the same manner as the income tax returns required to be filed by
154	154	124such business entity under chapter 62 or 63, whichever is applicable.
155	155	125 Section 4. The commissioner may, in his or her reasonable discretion, establish or
156	156	126reallocate gross receipts among related business entities so as to fairly reflect the gross receipts
157	157	127of all such business entities.
158	158	128 Section 5. All gross receipts tax revenues received by the commonwealth shall be
159	159	129deposited into the Housing First and Housing for All Fund established by section 35DDD of
160	160	130chapter 10.
161	161	131 SECTION 3. This act shall take effect on January 1, 2024.