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