Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H4063 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. 4228 FILED ON: 3/24/2023
3	3	HOUSE . . . . . . . . . . . . . . . No. 4063
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Marjorie C. Decker
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 Cambridge to impose a real estate transfer fee.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Marjorie C. Decker25th Middlesex3/24/2023 1 of 3
16	16	HOUSE DOCKET, NO. 4228 FILED ON: 3/24/2023
17	17	HOUSE . . . . . . . . . . . . . . . No. 4063
18	18	By Representative Decker of Cambridge, a petition (subject to Joint Rule 7B) of Marjorie C.
19	19	Decker for legislation to authorize the city of Cambridge to impose a real estate transfer fee.
20	20	Revenue.
21	21	[SIMILAR MATTER FILED IN PREVIOUS SESSION
22	22	SEE HOUSE, NO. 4282 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 authorizing the city of Cambridge to impose a real estate transfer fee.
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. There is hereby imposed a real estate transfer fee equal to 2 per cent of the
32	32	2portion of the purchase price exceeding $1,000,000 upon the transfer of: (i) any real property
33	33	3interest in any property situated in the city of Cambridge; or (ii) a controlling interest in a trust,
34	34	4limited liability company or other entity that directly or indirectly holds an interest in any class
35	35	5of real property situated in the city of Cambridge; or (iii) any interest that is subject to deed
36	36	6excise taxes pursuant to G.L. c.64D, §1. After the first year of the effective date of this act, the
37	37	7exempted portion of the purchase price shall be increased annually based on the Consumer Price
38	38	8Index, as defined in section 1 of the Internal Revenue Code as codified in 26 U.S.C. section 1,
39	39	9for all urban consumers in the Boston-Cambridge-Newton area as of January of each year. The
40	40	10exempted portion of the purchase price as determined annually based on the Consumer Price 2 of 3
41	41	11Index shall become effective for sales occurring on or after April 1. The fee shall be the liability
42	42	12of the seller of such property interest, and any agreement between the purchaser and the seller or
43	43	13any other person with reference to the allocation of the liability for the fee shall not affect such
44	44	14liability of the seller to the city of Cambridge. The city of Cambridge may, by ordinance, adopt
45	45	15additional requirements, exemptions and regulations to construe the provisions of this act,
46	46	16including in the case of a transfer of a controlling interest, what constitutes a controlling interest
47	47	17and the calculation of the fee.
48	48	18 SECTION 2. The following transfers of real property interests situated in the city of
49	49	19Cambridge shall be exempt from the fee established pursuant to section 1: (i) transfers to or from
50	50	20the federal government, the commonwealth, the city of Cambridge and any of their
51	51	21instrumentalities, agencies or subdivisions, including the Cambridge housing authority; (ii)
52	52	22transfers of real property interests where all of the dwelling units are subject to a long term
53	53	23affordable housing restriction; and (iii) transfers made without additional consideration to
54	54	24confirm, correct, modify or supplement a transfer previously made.
55	55	25 SECTION 3. The fee established pursuant to section 1 shall be paid to the Middlesex
56	56	26South registry of deeds at the time that an instrument is recorded. The Middlesex South registry
57	57	27of deeds shall transfer the fees to the city of Cambridge twice yearly, with the first payment due
58	58	28on or before September 1, covering the time period of January 1 through June 30, and the second
59	59	29payment due on or before March 1, covering the time period of July 1 through December 31.
60	60	30The Middlesex South registry of deeds shall provide a list of properties that paid the fee when
61	61	31payments are transmitted to the city of Cambridge. The city of Cambridge may, by ordinance,
62	62	32adopt additional requirements, exemptions and regulations to implement or enforce the fee,
63	63	33consistent with this act. 3 of 3
64	64	34 SECTION 4. The city of Cambridge shall deposit all fees received pursuant to this act
65	65	35into the Cambridge Affordable Housing Trust Fund established pursuant to chapter 482 of the
66	66	36acts of 1991, which shall use revenues from the fees raised pursuant to this act for affordable
67	67	37housing purposes.
68	68	38 SECTION 5. The fee established pursuant to section 1 shall be collected by the
69	69	39Middlesex South registry of deeds unless the city of Cambridge provides the seller with an
70	70	40affidavit stating that the seller is exempt pursuant to clause (ii) of section 2. Without the
71	71	41exemption affidavit, the Middlesex South registry of deeds shall collect the fee from the seller at
72	72	42the time of recording, unless the seller is exempt pursuant to clause (i) or clause (iii) of section 2.
73	73	43The Middlesex South register of deeds shall not record or register a deed unless the fee is
74	74	44collected from a non-exempt seller.
75	75	45 SECTION 6. Sections 1 to 5, inclusive, shall take effect upon an affirmative majority
76	76	46vote of the city council of the city of Cambridge.
77	77	47 SECTION 7. Section 6 shall take effect upon its passage.