Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H4827 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. 5220 FILED ON: 6/26/2024
3	3	HOUSE . . . . . . . . . . . . . . . No. 4827
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	David T. Vieira and Dylan A. Fernandes
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 establishing a real estate transfer fee upon the transfer of residential property in the Town
13	13	of Falmouth for the purpose of funding affordable housing.
14	14	_______________
15	15	PETITION OF:
16	16	NAME:DISTRICT/ADDRESS :DATE ADDED:David T. Vieira3rd Barnstable6/26/2024Dylan A. FernandesBarnstable, Dukes and Nantucket6/26/2024 1 of 5
17	17	HOUSE DOCKET, NO. 5220 FILED ON: 6/26/2024
18	18	HOUSE . . . . . . . . . . . . . . . No. 4827
19	19	By Representatives Vieira of Falmouth and Fernandes of Falmouth, a petition (accompanied by
20	20	bill, House, No. 4827) of David T. Vieira and Dylan A. Fernandes (by vote of the town) that the
21	21	town of Falmouth be authorized to establish a real estate transfer fee upon the transfer of
22	22	residential property in said town for the purpose of funding affordable housing. Revenue.
23	23	[Local Approval Received.]
24	24	The Commonwealth of Massachusetts
25	25	_______________
26	26	In the One Hundred and Ninety-Third General Court
27	27	(2023-2024)
28	28	_______________
29	29	An Act establishing a real estate transfer fee upon the transfer of residential property in the Town
30	30	of Falmouth for the purpose of funding affordable housing.
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 1. For purposes of this act, the words and phrases set forth in this section shall
34	34	2have the following meanings:
35	35	3 “Falmouth Affordable Housing Fund” shall refer to the fund or account established by
36	36	4Chapter 29 of the Acts of 2011.
37	37	5 “Purchaser” shall refer to the transferee, grantee, or recipient of any real property interest.
38	38	6 “Purchase price” all consideration paid or transferred by or on behalf of a purchaser to a
39	39	7seller or their nominee, or for their benefit, for the transfer of any real property interest, and shall
40	40	8include, but not be limited to, all cash or its equivalent so paid or transferred; all cash or other
41	41	9property paid or transferred by or on behalf of the purchaser to discharge or reduce any
42	42	10obligation of the seller; the principal amount of all notes or their equivalent, or other deferred 2 of 5
43	43	11payments, given or promised to be given by or on behalf of the purchaser to the seller or his/her
44	44	12nominee; the outstanding balance of all obligations of the seller which are assumed by the
45	45	13purchaser or to which the real property interest transferred remains subject after the transfer,
46	46	14determined at the time of transfer, but excluding real estate and other municipal liens or
47	47	15assessments which are not overdue at the time of transfer.
48	48	16 “Real property interest” shall refer to any legal or equitable interest in or to real property,
49	49	17and any beneficial interest therein, including the interest of any beneficiary in a trust which holds
50	50	18any legal or equitable interest in real property, the interest of a partner or member in a
51	51	19partnership or limited liability company, and the interest of a stockholder in a corporation.
52	52	20 “Seller” shall refer to the transferor, grantor, or immediate former owner of any real
53	53	21property interest.
54	54	22 “Time of transfer” of any real property interest shall mean the time at which such transfer
55	55	23is legally effective as between the parties thereto, and, in any event, with respect to a transfer
56	56	24evidenced by an instrument recorded with the appropriate registry of deeds.
57	57	25 “Town” shall refer to the Town of Falmouth acting by and through the Select Board.
58	58	26 SECTION 2.
59	59	27 (a)There is hereby imposed a real estate transfer fee on the sale of residential real
60	60	28estate where the purchase price is one million dollars or more; and the first million dollars of any
61	61	29purchase price is exempted from the calculations made under this section. The amount of this
62	62	30exemption may be amended by a 2/3 vote of Town Meeting; 3 of 5
63	63	31 (b)the transfer fee structure shall be a percentage of the purchase price, graduated as
64	64	32follows: for conveyances where the purchase price is $1 million but less than $1,500,000, a fee
65	65	33of 1% of the excess over $1 million is assessed; and, for conveyances where the purchase price is
66	66	34$1,500,000 but less than $2 million, a fee of 1% of the excess over $1 million and in addition a
67	67	35fee of 1.5% of the excess over $1,500,000 is assessed; and, for conveyances where the purchase
68	68	36price is $2 million or more a fee of 1% of the excess over $1 million and a fee of 1.5% of the
69	69	37excess over $1,500,000 up to and including $2 million and a fee of 2% of the excess over $2
70	70	38million is assessed;
71	71	39 (c)the fee is payable by the seller at the time of transfer to the Town of Falmouth;
72	72	40and
73	73	41 (d)all fees collected shall be deposited to the Falmouth Affordable Housing Fund.
74	74	42 SECTION 3. The Falmouth Affordable Housing Fund may use any funds deposited
75	75	43under this Act for any purpose for which the Falmouth Affordable Housing Fund was
76	76	44established.
77	77	45 SECTION 4. A copy of the deed or other instrument evidencing a transfer of property
78	78	46subject to this transfer fee shall be provided to the Town and shall be accompanied by a) an
79	79	47affidavit signed under oath or under the pains and penalties or perjury by the purchaser and the
80	80	48seller attesting to the purchase price, (b) the applicable fee owed, and (c) the basis, if any, upon
81	81	49which the transfer is claimed to be exempt from said fee. Upon receipt of the payment of the
82	82	50transfer fee or satisfactory evidence of exemption, the Select Board or designee shall promptly
83	83	51issue a certificate indicating that the fee has been paid or that the transfer is exempt from the fee. 4 of 5
84	84	52 SECTION 5. The following transfers of real property interests shall be exempt from the
85	85	53fee established in Section 2. The seller shall have the burden of proof that any transfer is exempt
86	86	54under this section.
87	87	55 (a)Transfers to the government of the United States, the commonwealth, and any of
88	88	56their instrumentalities, agencies or subdivisions, including but not limited to transfers to the
89	89	57Town of Falmouth;
90	90	58 (b)Transfers which, without additional consideration, confirm or correct a transfer
91	91	59previously made;
92	92	60 (c)Transfers made with consideration of less than $100.00;
93	93	61 (d)Transfers by operation of law without actual consideration, including but not
94	94	62limited to transfers resulting from a court order or decree;
95	95	63 (e)Transfers to any charitable organization as defined in M.G.L. Ch. 59 § 5(3), or
96	96	64any religious organization, provided that the real property interest so transferred will be held by
97	97	65the charitable or religious organization solely for its public charitable or religious purposes;
98	98	66 (f) Transfers made between family members including spouses, parents and children,
99	99	67grandparents and grandchildren, and siblings; and
100	100	68 (g)Transfers of any unit that is subject to a year round affordable housing deed
101	101	69restriction approved by the Executive Office of Housing and Livable Communities,
102	102	70MassHousing, or the Town of Falmouth.
103	103	71 SECTION 6. The Town shall have such remedies to collect an unpaid fee that is owed
104	104	72to the Town as provided by law with respect to the collection of real property taxes. 5 of 5
105	105	73 SECTION 7. The Town may, by bylaw, adopt additional requirements, exemptions, and
106	106	74regulations to implement or enforce the provisions of this Act, to be consistent with the Act. The
107	107	75Town may not, by bylaw or otherwise, eliminate or reduce any exemption set forth in this act.
108	108	76 SECTION 8. This act shall take effect ninety (90) days following the date of passage.