Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H3845 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. 4305 FILED ON: 5/4/2023
3	3	HOUSE . . . . . . . . . . . . . . . No. 3845
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Mike Connolly and Erika Uyterhoeven
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 authorizing the city of Somerville to impose a real estate transfer fee.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Mike Connolly26th Middlesex5/4/2023Erika Uyterhoeven27th Middlesex5/4/2023 1 of 5
16	16	HOUSE DOCKET, NO. 4305 FILED ON: 5/4/2023
17	17	HOUSE . . . . . . . . . . . . . . . No. 3845
18	18	By Representatives Connolly of Cambridge and Uyterhoeven of Somerville, a petition
19	19	(accompanied by bill, House, No. 3845) of Mike Connolly and Erika Uyterhoeven (with the
20	20	approval of the mayor and the board of aldermen) that the city of Somerville be authorized to
21	21	establish a real estate transfer fee on certain real estate transactions in said city. Revenue.
22	22	[Local Approval Received.]
23	23	[SIMILAR MATTER FILED IN PREVIOUS SESSION
24	24	SEE HOUSE, NO. 3938 OF 2021-2022.]
25	25	The Commonwealth of Massachusetts
26	26	_______________
27	27	In the One Hundred and Ninety-Third General Court
28	28	(2023-2024)
29	29	_______________
30	30	An Act authorizing the city of Somerville to impose a real estate transfer fee.
31	31	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
32	32	of the same, as follows:
33	33	1 SECTION 2. Except where otherwise exempted pursuant to this act, the City of
34	34	2Somerville may impose a fee of up to two per cent (2%) of the purchase price upon the transfer
35	35	3of any real property interest or the transfer of a controlling interest in a trust, limited liability
36	36	4company, or other entity that directly or indirectly holds an interest, in any real property situated
37	37	5in the City of Somerville, as follows: (A) a fee in the amount of one per cent (1%) of said
38	38	6purchase price shall be due and payable by the seller; and (B) a fee in the amount of one per cent
39	39	7(1%) of said purchase price shall be due and payable by the purchaser. In the case of a transfer of
40	40	8a controlling interest, the City of Somerville may define by ordinance what constitutes a 2 of 5
41	41	9controlling interest and the calculation of the fee. The City of Somerville is hereinafter referred
42	42	10to as the “City”.
43	43	11 (a) Exempt Transfers. The following transfers of real property interests shall be exempt
44	44	12from the fee established by this act: (i) transfers between family members as may be defined by
45	45	13ordinance; (ii) transfers of convenience as may be defined by ordinance; and (iii) transfers to the
46	46	14government of the United States or any other instrumentality, agency or subdivision thereof, or
47	47	15the Commonwealth or any instrumentality or subdivision thereof.
48	48	16 (b) Exempt Sellers; Fee Due by Non-Exempt Seller. The seller of residential real property
49	49	17in the City shall be exempt from the fee authorized in Section 2, if the seller of such real property
50	50	18is:
51	51	19 (i) a vulnerable senior, as may be defined by ordinance or
52	52	20 (ii) a taxpayer approved by the City for an exemption for residential real property
53	53	21pursuant to section 5C of chapter 59 of the General Laws or any special law for the property to
54	54	22be transferred (referred to as the “residential exemption”), or meets all qualifications for approval
55	55	23of same, for the two immediately preceding years as of the date of the deed or other instrument
56	56	24evidencing such transfer or such other date as may be defined by ordinance. This exemption shall
57	57	25not apply to residential real property which contains four or more dwelling units.
58	58	26 If the seller of such real property is an heir-at-law or devisee, and the transfer of said real
59	59	27property is within one year from the date of demise of the deceased owner of such real property
60	60	28and such owner met the above residential exemption requirement, or would have met all
61	61	29qualifications for approval of same, the seller shall be exempt from said fee. 3 of 5
62	62	30 If the seller is not exempt, the fee shall be due and payable by the seller to the City at the
63	63	31time set forth in Section 3.
64	64	32 (c) Exempt Purchasers; Fee Due by Non-Exempt Purchaser. The purchaser shall be
65	65	33exempt from the fee authorized in Section 2 if:
66	66	34 (i) that purchaser is a vulnerable senior, as may be defined by ordinance or
67	67	35 (ii) prior to the recording of any deed, the purchaser of such real property submits an
68	68	36affidavit of intent to the City to seek a residential exemption for that property, on a form
69	69	37approved by the City, in which case the purchaser shall be provisionally exempt from the fee in
70	70	38Section 2, subject to this section. Such provisional exemption for such transaction shall be made
71	71	39permanent, and the fee shall be permanently waived, if said purchaser is approved by the City for
72	72	40a residential exemption with respect to such real property for the first two years following the
73	73	41date of transfer in which the purchaser would first be eligible to apply for said residential
74	74	42exemption. If the purchaser does not submit said affidavit, the fee shall be due and payable by
75	75	43the purchaser to the City at the time set forth in Section 3. If the purchaser does not obtain
76	76	44residential exemptions during the first two years following the date of transfer, the fee shall be
77	77	45due and payable by the purchaser upon a failure to obtain either required exemption. This
78	78	46exemption shall not apply to residential real property which contains four or more dwelling units.
79	79	47 (d) The fee shall be paid to the City of Somerville. The City is authorized to adopt an
80	80	48ordinance to provide for the collection and liening of any outstanding transfer fee. The City shall
81	81	49have such remedies to collect said amount as provided by law with respect to the collection of
82	82	50real property taxes. 4 of 5
83	83	51 (e) The City shall deposit all fees received pursuant to this act into the Somerville
84	84	52Affordable Housing Trust Fund established by the City.
85	85	53 SECTION 3. A copy of the deed or other instrument evidencing such transfer shall be
86	86	54provided to the City and shall be accompanied by, (a) an affidavit signed under oath or under the
87	87	55pains and penalties of perjury by the purchaser and seller attesting to the purchase price, (b) the
88	88	56applicable fee owed, (c) the basis, if any, upon which the transfer, or one or both of the parties to
89	89	57the transfer, is claimed to be exempt in whole or in part from said fee, and (d) if applicable, an
90	90	58affidavit of intent to seek a residential exemption for that property by the purchaser. Upon receipt
91	91	59of such payment and/or satisfactory evidence of exemption, the City or its designee shall
92	92	60promptly thereafter issue a certificate indicating that the fee has been paid or that the purchaser
93	93	61or seller, or the transfer, is exempt from the fee. The Middlesex South Register of Deeds shall
94	94	62not record or register a deed unless the deed is accompanied by such certificate.
95	95	63 SECTION 4. The City may, by ordinance, adopt additional requirements, exemptions,
96	96	64and regulations to implement or enforce said fee, consistent with this act. The City is not
97	97	65authorized to eliminate or reduce any exemption set forth in this act.
98	98	66 SECTION 5. The Affordable Housing Trust Fund, as permitted by the ordinance
99	99	67establishing said Affordable Housing Trust Fund and its governing documents, shall use revenue
100	100	68from the fees raised pursuant to this act to fund affordable housing programs including, but not
101	101	69limited to, limited equity arrangements, community land trusts, purpose-built housing, and other
102	102	70programs to underwrite the affordability of properties with a preference, where permitted by
103	103	71applicable law, for current and recent Somerville residents and employees. 5 of 5
104	104	72 SECTION 6. The City shall prepare and issue an annual report that (i) identifies fee
105	105	73receipts by payer category including buyers and sellers; (ii) quantifies affordable housing
106	106	74programs funded, including type and purpose, and (iii) evaluates the impact of said affordable
107	107	75housing programs, including but not limited to, to the extent reasonably possible and permitted
108	108	76by applicable law, the number and demographics of individuals and families served as well as
109	109	77measures of housing stability and wealth generation in the community.