Massachusetts House Bill H3736

Massachusetts 2023-2024 Regular Session

• Introduced: 4/6/23
• Refer: 4/6/23

Caption

Authorizing the town of Truro to impose a 0.5% real estate transfer fee

Impact

If enacted, this bill will amend the local tax code, allowing the town of Truro to implement a new financial mechanism aimed at enhancing its capital and affordable housing efforts. By providing a dedicated funding source, it aims to improve local services and infrastructure development, particularly problems related to housing accessibility. The introduction of a transfer fee may also serve to generate a recurring revenue stream to assist the community in managing future growth effectively.

Summary

House Bill 3736 aims to authorize the town of Truro to impose a real estate transfer fee of 0.5% on any transfer of real property interests. According to the bill, this fee will be the responsibility of the purchaser and is intended to provide funds for local initiatives. The revenue collected through this fee will be split equally, with half allocated to the town’s Capital Improvement Stabilization Fund and the other half dedicated to the Affordable Housing Trust Fund. This initiative is expected to bolster local infrastructure and support housing projects within the community.

Contention

One of the most notable points of contention surrounding House Bill 3736 involves its implications for homebuyers, particularly first-time buyers who will be exempt from the transfer fee if they reside in the property for a minimum of five years. Critics might argue this could still burden potential buyers with upfront costs, influencing housing market dynamics. Additionally, ensuring clarity on exemptions for transfers to various entities as listed in the bill (such as government agencies and charitable organizations) may also be a point of debate among stakeholders about equity and accessibility in real estate transactions.