Massachusetts House Bill H4805

Massachusetts 2023-2024 Regular Session

• Introduced: 6/26/24
• Refer: 6/26/24
• Refer: 6/27/24
• Refer: 7/25/24
• Report Pass: 7/30/24
• Refer: 7/30/24

Caption

Relative to property tax classification in the city of Boston

Impact

The implementation of H4805 could significantly affect municipal revenue collection in Boston by recalibrating how property taxes are assessed and classified. By establishing these minimum residential factors, the bill aims to ensure fairness in the distribution of tax burdens across different property classes. However, this could also complicate tax assessment processes and necessitate adjustments in municipal budgets, especially as the defined percentages progress upwards each year.

Summary

House Bill H4805, known as 'An Act relative to property tax classification in the city of Boston', aims to modify the property tax classification limits within Boston for the fiscal years 2025 through 2029. The bill allows the Commissioner of Revenue to adjust the minimum residential factor to ensure that the residential property class does not bear a greater percentage of the total property tax levy compared to previous years. Specifically, it stipulates a series of progressively increasing minimum residential factors over the specified fiscal years, beginning at 45% in 2025 and reaching 50% by 2028.

Conclusion

Overall, H4805 is positioned as an emergency law necessitating immediate consideration due to its implications for property tax classification in Boston. The intention behind the bill is to regulate and simplify the management of property tax assessments while ensuring that the fiscal responsibilities are justly administered among the property classes, thus reflecting the city's ongoing efforts to maintain fiscal equilibrium and equity.

Contention

Some stakeholders may view the adjustments proposed in H4805 as a necessary measure to balance property taxes more equitably among residents. However, potential contention arises from concerns that these changes could lead to increases in taxes for some residents as the residential factor is adjusted upward. There may be pushback from various community groups who fear that higher taxes could disproportionately affect low-income residents as well as stakeholders within the real estate sector who might have vested interests in keeping property tax rates constant or lower.