Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H2793 Compare Versions

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

Old	New	Differences
1	1	1 of 1
2	2	HOUSE DOCKET, NO. 3016 FILED ON: 1/19/2023
3	3	HOUSE . . . . . . . . . . . . . . . No. 2793
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Brandy Fluker Oakley
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 relative to real estate transfer fees and senior property tax relief.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Brandy Fluker Oakley12th Suffolk1/19/2023Lydia EdwardsThird Suffolk2/22/2023Samantha Montaño15th Suffolk2/22/2023Rob Consalvo14th Suffolk2/22/2023 1 of 5
16	16	HOUSE DOCKET, NO. 3016 FILED ON: 1/19/2023
17	17	HOUSE . . . . . . . . . . . . . . . No. 2793
18	18	By Representative Fluker Oakley of Boston, a petition (accompanied by bill, House, No. 2793)
19	19	of Brandy Fluker Oakley and others (with the approval of the mayor and city council) relative to
20	20	real estate transfer fees and senior property tax relief in the city of Boston. Revenue. [Local
21	21	Approval Received.]
22	22	[SIMILAR MATTER FILED IN PREVIOUS SESSION
23	23	SEE HOUSE, NO. 4637 OF 2021-2022.]
24	24	The Commonwealth of Massachusetts
25	25	_______________
26	26	In the One Hundred and Ninety-Third General Court
27	27	(2023-2024)
28	28	_______________
29	29	An Act relative to real estate transfer fees and senior property tax relief.
30	30	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
31	31	of the same, as follows:
32	32	1 SECTION 1. Findings and Purpose. The general court finds and declares that a serious
33	33	2state of emergency exists in the city of Boston with respect to housing, whereby there is an
34	34	3inadequate supply of affordable housing, which is impacting quality of life and public health,
35	35	4contributing to housing insecurity, rent burden, homelessness, and increasing evictions, that
36	36	5rising housing costs and speculative real estate practices disproportionately impact protected
37	37	6classes, including households of color, and further finds that imposition of a fee on certain real
38	38	7estate transfers shall be applied, at the discretion of the city and with exemptions as detailed in
39	39	8this act, in order to mitigate the impacts of speculative market practices through the production
40	40	9of affordable and deeply affordable housing and by discouraging rapid repeat sales of property. 2 of 5
41	41	10 Additionally, outdated income and asset restrictions for senior tax exemptions are
42	42	11restricting exemption relief, resulting in higher ownership costs and risking the displacement of a
43	43	12vulnerable population.
44	44	13 SECTION 2. Transfer Fee. Except where otherwise exempted pursuant to this act, the
45	45	14city of Boston may impose a fee of up to 2 percent of the purchase price upon the transfer of any
46	46	15real property interest in any real property in the city of Boston, or the transfer of a controlling
47	47	16interest in a trust, limited liability company, or other entity that directly or indirectly holds an
48	48	17interest in any real property situated in the city of Boston. The fee shall be payable by the seller.
49	49	18In the case of a transfer of a controlling interest, the city of Boston may define by ordinance what
50	50	19constitutes a controlling interest and the calculation of the fee.
51	51	20 SECTION 3. Exempted Value. The first $2,000,000 of the purchase price of any transfer
52	52	21of any real property interest, or the transfer of a controlling interest in a trust, limited liability
53	53	22company, or other entity that directly or indirectly holds an interest in any real property situated
54	54	23in the city of Boston shall be exempted from the transfer fee. The amount of the purchase price
55	55	24exempted from the transfer fee shall be evaluated every three (3) years, and may be adjusted by
56	56	25the City Council with the approval of the Mayor every three (3) years based on the percentage
57	57	26increase in the median citywide sales price for all properties, but shall not be reduced.
58	58	27 SECTION 4. Payment of Fees to City. Fees established pursuant to this act shall be paid
59	59	28to the city of Boston; provided that, the city of Boston may, in lieu of collecting such fees, enter
60	60	29into an agreement with the Suffolk county registry of deeds regarding the collection of such fees.
61	61	30The city is authorized to adopt an ordinance to provide for the collection and liening of any 3 of 5
62	62	31outstanding transfer fee. The city shall have such remedies to collect said amount as provided by
63	63	32law with respect to the collection of real property taxes.
64	64	33 The city shall deposit all fees received pursuant to this act into the neighborhood housing
65	65	34trust established by the city pursuant to chapter 665 of the acts of 1956, provided that, in order to
66	66	35address a range of housing needs, the city may, in an ordinance accepting the provisions of this
67	67	36act, or in an ordinance amending that acceptance, reserve and appropriate through the city's
68	68	37annual budgetary filings, a portion of fees received pursuant to this act for programs designed to
69	69	38further housing acquisition, affordability, creation, preservation, senior homeowner stability,
70	70	39low-income renter stability, or related purposes and to address disparities in housing access and
71	71	40opportunity.
72	72	41 SECTION 5. Affidavit and Deed. A copy of the deed or other instrument evidencing each
73	73	42transfer subject to the transfer fee shall be provided to the city and shall be accompanied by, (a)
74	74	43an affidavit signed under oath or under the pains and penalties of perjury by the purchaser and
75	75	44seller attesting to the purchase price, (b) the applicable fee owed, and (c) the basis, if any, upon
76	76	45which the transfer, or one or both of the parties to the transfer, is claimed to be exempt in whole
77	77	46or in part from said fee or fees. Upon receipt of such payment and/or satisfactory evidence of
78	78	47exemption, the city or its designee shall promptly thereafter issue a certificate indicating that the
79	79	48fee has been paid or that the purchaser or seller, or the transfer, is exempt from the fee. The
80	80	49Suffolk county register of deeds shall not record or register a deed unless the deed is
81	81	50accompanied by such certificate.
82	82	51 SECTION 6. Exempt Transfers. The following transfers of real property interests shall be
83	83	52exempt from the fee established by this act: (1) transfers between family members, as may be 4 of 5
84	84	53defined by ordinance; (2) transfers of convenience, as may be defined by ordinance; or (3)
85	85	54transfers to the government of the United States or any other instrumentality, agency or
86	86	55subdivision thereof, or the commonwealth or any instrumentality or subdivision thereof.
87	87	56 SECTION 7. Acceptance of Fee by Ordinance; Further Exemptions and Regulation. The
88	88	57city may, by ordinance, accept and determine the amount of the fee and adjust the exempted
89	89	58value, pursuant to the structure detailed in sections 2 and 3, and may adopt additional exemptions
90	90	59for economically vulnerable populations, affordable housing developments, units of housing
91	91	60subject to deed restrictions, homeowners or beneficiaries of a city-approved homebuyer program,
92	92	61or other parties. The city may also specify requirements or conditions under which exemptions
93	93	62are granted and adopt regulations to implement or enforce said fee, consistent with this act.
94	94	63 SECTION 8. Annual Report. The city shall prepare and issue an annual report that (i)
95	95	64identifies fee receipts by payer category including buyers and sellers, location and unit type; and
96	96	65(ii) quantifies senior tax relief and affordable housing programs funded, including type and
97	97	66purpose.
98	98	67 SECTION 9. Senior Homeowner Property Tax Exemption. Notwithstanding clause 41C
99	99	68of section 5 of chapter 59 or any other general or special law to the contrary, with respect to real
100	100	69property in the City of Boston the following factors determining exemption for real property
101	101	70under clause 41C of section 5 of chapter 59 shall be adjusted as follows: (1) increasing the sum
102	102	71of $500 contained in the first sentence of clause 41C to $1500; (2) increasing the amounts
103	103	72contained in subclause (B) of said first sentence whenever they appear in said subclause from
104	104	73$13,000 dollars and from $15,000 dollars to fifty percent of Area Median Income as adjusted for
105	105	74household size, as is published annually by the U.S. Department of Housing and Urban 5 of 5
106	106	75Development, as required by Section 8 of the Federal Housing Act of 1937 (42 USC Section
107	107	761437f), as amended, and the relevant year of the calculation shall be the most recent figure
108	108	77available as of July 1 of the start of the fiscal year to which the exemption is sought; and (3)
109	109	78increasing the amounts contained in subclause (C) of said first sentence whenever they appear in
110	110	79said subclause from $28,000 dollars to not more than $80,000 and from $30,000 to not more than
111	111	80$110,000. These adjustments shall not be further modified by the second sentence of clause 41C
112	112	81of section 5 of chapter 59.
113	113	82 SECTION 10. Severance Clause. The determination or declaration that any provision of
114	114	83this act is beyond the authority of the general court or is preempted by law or regulation shall not
115	115	84affect the validity or enforceability of any other provisions.
116	116	85 SECTION 11. Effective Date. This act shall take effect immediately upon signing by the
117	117	86Governor.