Massachusetts House Bill H3734

Massachusetts 2023-2024 Regular Session

• Introduced: 4/6/23
• Refer: 4/6/23

Caption

Establishing a real estate transfer fee upon the transfer of property in the city known as the town of Amherst

Impact

The implementation of this bill will notably affect state and local laws concerning real estate transactions by allowing Amherst to impose a fee that funds both the town’s general fund and the Amherst Municipal Affordable Housing Trust Fund. The legislation specifies the allocation of funds raised, mandating that the first $250,000 collected each fiscal year supports affordable housing initiatives. This could enhance local efforts to tackle housing shortages or support community projects, thus potentially stabilizing or increasing housing availability in the region.

Summary

House Bill H3734 proposes the establishment of a real estate transfer fee in the town of Amherst, set at a maximum of 2% of the purchase price upon the transfer of property interests. The bill has been put forth by legislators Mindy Domb and Joanne M. Comerford as a means for the town to generate additional revenue through property transactions. The fee would apply to both direct property transfers and transfers of interests in entities that own residential properties in Amherst, reinforcing local control over real estate transactions in the area.

Contention

There may be points of contention regarding the specific exemptions permitted within the bill. Transfers that fall under certain conditions, such as those between family members or minimal-value transactions, are exempt from the fee. Debates may arise over what constitutes a controlling interest and the challenges in proving exemptions, which could lead to concerns about implementation and compliance among local residents. Additionally, the bill does not allow Amherst to reduce or eliminate the specified exemptions, raising questions about local governance and flexibility in addressing future community needs.