| 1 | 1 | | HOUSE . . . . . . . No. 5114 |
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| 2 | 2 | | The Commonwealth of Massachusetts |
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| 3 | 3 | | ______________________________________ |
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| 4 | 4 | | HOUSE OF REPRESENTATIVES, November 21, 2024. |
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| 5 | 5 | | The committee on Ways and Means, to whom was referred the Bill |
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| 6 | 6 | | relative to property tax classification in the city of Boston (House, No. |
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| 7 | 7 | | 5099), reports recommending that the same ought to pass with an |
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| 8 | 8 | | amendment substituting therefor the accompanying bill (House, No. 5114) |
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| 9 | 9 | | [Local Approval Received]. |
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| 10 | 10 | | For the committee, |
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| 11 | 11 | | AARON MICHLEWITZ. |
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| 12 | 12 | | 1 of 3 |
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| 13 | 13 | | FILED ON: 11/21/2024 |
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| 14 | 14 | | HOUSE . . . . . . . . . . . . . . . No. 5114 |
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| 15 | 15 | | The Commonwealth of Massachusetts |
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| 16 | 16 | | _______________ |
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| 17 | 17 | | In the One Hundred and Ninety-Third General Court |
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| 18 | 18 | | (2023-2024) |
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| 19 | 19 | | _______________ |
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| 20 | 20 | | An Act relative to property tax classification in the city of Boston. |
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| 21 | 21 | | Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority |
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| 22 | 22 | | of the same, as follows: |
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| 23 | 23 | | 1 SECTION 1. Notwithstanding section 1A of chapter 58 of the General Laws or any other |
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| 24 | 24 | | 2general or special law to the contrary, the commissioner of revenue shall further adjust the |
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| 25 | 25 | | 3minimum residential factor of the city of Boston determined under said section 1A of said |
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| 26 | 26 | | 4chapter 58 for fiscal years 2025, 2026 and 2027, if adoption of such factor for any such year |
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| 27 | 27 | | 5would result in the residential property class bearing a higher percentage of the total property tax |
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| 28 | 28 | | 6levy than the percentage of the total property tax levy imposed on the residential property class |
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| 29 | 29 | | 7than in the prior fiscal year. The new minimum residential factor for such year shall be: (i) for |
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| 30 | 30 | | 8fiscal year 2025, 50 per cent subject to such adjustment upward as may be required to provide |
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| 31 | 31 | | 9that the percentage of the total tax levy imposed on any class of real or personal property shall |
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| 32 | 32 | | 10not exceed 181.5 per cent of the full and fair cash valuation of the taxable property of the class |
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| 33 | 33 | | 11divided by the full and fair cash valuation of all taxable real and personal property in the city of |
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| 34 | 34 | | 12Boston; (ii) in fiscal year 2026, 50 per cent subject to such adjustment upward as may be |
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| 35 | 35 | | 13required to provide that the percentage of the total tax levy imposed on any class of real or |
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| 36 | 36 | | 14personal property shall not exceed 180 per cent of the full and fair cash valuation of the taxable 2 of 3 |
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| 37 | 37 | | 15property of the class divided by the full and fair cash valuation of all taxable real and personal |
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| 38 | 38 | | 16property in the city of Boston; and (iii) in fiscal year 2027, 50 per cent subject to such adjustment |
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| 39 | 39 | | 17upward as may be required to provide that the percentage of the total tax levy imposed on any |
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| 40 | 40 | | 18class of real or personal property shall not exceed 178 per cent of the full and fair cash valuation |
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| 41 | 41 | | 19of the taxable property of the class divided by the full and fair cash valuation of all taxable real |
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| 42 | 42 | | 20and personal property in the city of Boston. In fiscal year 2028 and thereafter, the determination |
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| 43 | 43 | | 21of the minimum residential factor shall be conducted in accordance with the provisions detailed |
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| 44 | 44 | | 22in section 1A of chapter 58. Payments made under section 38H of chapter 59 of the General |
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| 45 | 45 | | 23Laws, and similar provisions of special acts, that are included in the tax levy for purposes of |
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| 46 | 46 | | 24determining the minimum residential factor under said section 1A of said chapter 58 shall be so |
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| 47 | 47 | | 25included in the determination of any factor under this section. |
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| 48 | 48 | | 26 SECTION 2. (a) Notwithstanding section 5 of chapter 59 of the General Laws or any |
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| 49 | 49 | | 27other general or special law to the contrary, the city of Boston may allow for an exemption from |
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| 50 | 50 | | 28taxation of personal property not in excess of $30,000 of value. |
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| 51 | 51 | | 29 (b) The city council of the city of Boston shall vote to establish a minimum value of |
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| 52 | 52 | | 30personal property subject to taxation. Said value shall be subject to limitation pursuant to |
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| 53 | 53 | | 31subsection (a). |
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| 54 | 54 | | 32 SECTION 3. Notwithstanding the provisions of chapter 30B of the General Laws, or any |
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| 55 | 55 | | 33other general or special law, the city of Boston, for each fiscal year in which the total tax levy |
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| 56 | 56 | | 34imposed on the class of commercial property exceeds 175 per cent of the full and fair cash |
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| 57 | 57 | | 35valuation of the taxable property of the class of commercial property divided by the full and fair |
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| 58 | 58 | | 36cash valuation of all the taxable real and personal property in the city of Boston, shall be 3 of 3 |
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| 59 | 59 | | 37authorized to expend up to $15,000,000 to award grants and provide programs for the purpose of |
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| 60 | 60 | | 38supporting small businesses impacted by the shift of the tax levy beyond the aforementioned 175 |
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| 61 | 61 | | 39per cent. The term “small business” as used in this section shall mean a business with its |
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| 62 | 62 | | 40principal place of business located in Boston, with fewer than 50 employees or less than |
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| 63 | 63 | | 41$5,000,000 in annual revenue. |
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| 64 | 64 | | 42 SECTION 4. This act shall take effect upon passage. |
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