1 of 1
HOUSE DOCKET, NO. 4228 FILED ON: 3/24/2023
HOUSE . . . . . . . . . . . . . . . No. 4063
The Commonwealth of Massachusetts
_________________
PRESENTED BY:
Marjorie C. Decker
_________________
To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act authorizing the city of Cambridge to impose a real estate transfer fee.
_______________
PETITION OF:
NAME:DISTRICT/ADDRESS :DATE ADDED:Marjorie C. Decker25th Middlesex3/24/2023 1 of 3
HOUSE DOCKET, NO. 4228 FILED ON: 3/24/2023
HOUSE . . . . . . . . . . . . . . . No. 4063
By Representative Decker of Cambridge, a petition (subject to Joint Rule 7B) of Marjorie C.
Decker for legislation to authorize the city of Cambridge to impose a real estate transfer fee.
Revenue.
[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE HOUSE, NO. 4282 OF 2021-2022.]
The Commonwealth of Massachusetts
_______________
In the One Hundred and Ninety-Third General Court
(2023-2024)
_______________
An Act authorizing the city of Cambridge to impose a real estate transfer fee.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 SECTION 1. There is hereby imposed a real estate transfer fee equal to 2 per cent of the
2portion of the purchase price exceeding $1,000,000 upon the transfer of: (i) any real property
3interest in any property situated in the city of Cambridge; or (ii) a controlling interest in a trust,
4limited liability company or other entity that directly or indirectly holds an interest in any class
5of real property situated in the city of Cambridge; or (iii) any interest that is subject to deed
6excise taxes pursuant to G.L. c.64D, ยง1. After the first year of the effective date of this act, the
7exempted portion of the purchase price shall be increased annually based on the Consumer Price
8Index, as defined in section 1 of the Internal Revenue Code as codified in 26 U.S.C. section 1,
9for all urban consumers in the Boston-Cambridge-Newton area as of January of each year. The
10exempted portion of the purchase price as determined annually based on the Consumer Price 2 of 3
11Index shall become effective for sales occurring on or after April 1. The fee shall be the liability
12of the seller of such property interest, and any agreement between the purchaser and the seller or
13any other person with reference to the allocation of the liability for the fee shall not affect such
14liability of the seller to the city of Cambridge. The city of Cambridge may, by ordinance, adopt
15additional requirements, exemptions and regulations to construe the provisions of this act,
16including in the case of a transfer of a controlling interest, what constitutes a controlling interest
17and the calculation of the fee.
18 SECTION 2. The following transfers of real property interests situated in the city of
19Cambridge shall be exempt from the fee established pursuant to section 1: (i) transfers to or from
20the federal government, the commonwealth, the city of Cambridge and any of their
21instrumentalities, agencies or subdivisions, including the Cambridge housing authority; (ii)
22transfers of real property interests where all of the dwelling units are subject to a long term
23affordable housing restriction; and (iii) transfers made without additional consideration to
24confirm, correct, modify or supplement a transfer previously made.
25 SECTION 3. The fee established pursuant to section 1 shall be paid to the Middlesex
26South registry of deeds at the time that an instrument is recorded. The Middlesex South registry
27of deeds shall transfer the fees to the city of Cambridge twice yearly, with the first payment due
28on or before September 1, covering the time period of January 1 through June 30, and the second
29payment due on or before March 1, covering the time period of July 1 through December 31.
30The Middlesex South registry of deeds shall provide a list of properties that paid the fee when
31payments are transmitted to the city of Cambridge. The city of Cambridge may, by ordinance,
32adopt additional requirements, exemptions and regulations to implement or enforce the fee,
33consistent with this act. 3 of 3
34 SECTION 4. The city of Cambridge shall deposit all fees received pursuant to this act
35into the Cambridge Affordable Housing Trust Fund established pursuant to chapter 482 of the
36acts of 1991, which shall use revenues from the fees raised pursuant to this act for affordable
37housing purposes.
38 SECTION 5. The fee established pursuant to section 1 shall be collected by the
39Middlesex South registry of deeds unless the city of Cambridge provides the seller with an
40affidavit stating that the seller is exempt pursuant to clause (ii) of section 2. Without the
41exemption affidavit, the Middlesex South registry of deeds shall collect the fee from the seller at
42the time of recording, unless the seller is exempt pursuant to clause (i) or clause (iii) of section 2.
43The Middlesex South register of deeds shall not record or register a deed unless the fee is
44collected from a non-exempt seller.
45 SECTION 6. Sections 1 to 5, inclusive, shall take effect upon an affirmative majority
46vote of the city council of the city of Cambridge.
47 SECTION 7. Section 6 shall take effect upon its passage.