Massachusetts 2023-2024 Regular Session

Massachusetts Senate Bill S1795 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1 of 1
2	2	SENATE DOCKET, NO. 1559 FILED ON: 1/19/2023
3	3	SENATE . . . . . . . . . . . . . . No. 1795
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Lydia Edwards
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 providing a local option incentivizing landlords to rent unsubsidized properties at below
13	13	market rent (good landlord tax credit).
14	14	_______________
15	15	PETITION OF:
16	16	NAME:DISTRICT/ADDRESS :Lydia EdwardsThird SuffolkSal N. DiDomenicoMiddlesex and Suffolk2/11/2023Patrick M. O'ConnorFirst Plymouth and Norfolk2/13/2023Michael O. MooreSecond Worcester2/15/2023 1 of 3
17	17	SENATE DOCKET, NO. 1559 FILED ON: 1/19/2023
18	18	SENATE . . . . . . . . . . . . . . No. 1795
19	19	By Ms. Edwards, a petition (accompanied by bill, Senate, No. 1795) of Lydia Edwards, Sal N.
20	20	DiDomenico, Patrick M. O'Connor and Michael O. Moore for legislation to provide a local
21	21	option incentivizing landlords to rent unsubsidized properties at below market rent (good
22	22	landlord tax credit). Revenue.
23	23	The Commonwealth of Massachusetts
24	24	_______________
25	25	In the One Hundred and Ninety-Third General Court
26	26	(2023-2024)
27	27	_______________
28	28	An Act providing a local option incentivizing landlords to rent unsubsidized properties at below
29	29	market rent (good landlord tax credit).
30	30	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
31	31	of the same, as follows:
32	32	1 SECTION 1. Section 6 of chapter 62 of the General Laws, as most recently amended by
33	33	2chapter 179 of the acts of 2022, is hereby further amended by inserting after subsection (bb) the
34	34	3following subsection:-
35	35	4 (cc)(1) As used in this subsection, the following words shall have the following meanings
36	36	5unless the context clearly requires otherwise:
37	37	6 “Qualified residential rental property”, any unsubsidized 2- to 4-unit residential rental
38	38	7property.
39	39	8 “Qualified rental unit”, a tenant-occupied unit in a qualified residential rental property
40	40	9with rent, including utilities, that does not exceed the maximum HOME rent limits for the
41	41	10participating jurisdiction as defined by the United States Department of Housing and Urban 2 of 3
42	42	11Development; provided, however, that “qualified rental unit” shall not include a unit rented to
43	43	12immediate family members or dependents of the owner.
44	44	13 “Qualified tenants”, low-income persons of protected classes in accordance with section
45	45	144 of chapter 151B, seniors and families with small children.
46	46	15 “Seniors”, Persons who are 65 years of age or older.
47	47	16 (2) Any resident who is an owner of a qualified residential rental property located in the
48	48	17commonwealth who is not a dependent of another taxpayer shall be allowed a credit for the
49	49	18difference between the maximum HOME rent limit for the participating jurisdiction as defined
50	50	19by the United States Department of Housing and Urban Development and the amount charged in
51	51	20rent; provided, however, that the credit shall not to exceed $2,000 for each qualified rental unit;
52	52	21and provided further, that the resident shall not be allowed the credit under this subsection for
53	53	22more than 6 qualified rental units. The credit shall be prorated by the number of months the
54	54	23qualified rental unit is rented to a qualified tenant; provided, however, that joint owners of a
55	55	24qualified residential rental property shall share any credit available to the property under this
56	56	25subsection in the same proportion as their ownership interest
57	57	26 Any taxpayer entitled to this credit for any taxable year, the amount of which exceeds the
58	58	27taxpayer’s total tax due for the current taxable year, may carry over the excess amount, as
59	59	28reduced from year to year, and apply the excess amount to the taxpayer’s tax liability for any 1
60	60	29or more of the next succeeding 3 taxable years; provided, however, that in no taxable year may
61	61	30the amount of the credit allowed exceed the total tax due of the taxpayer for the relevant taxable
62	62	31year. 3 of 3
63	63	32 The exemption provided for in this subsection shall be in addition to any other
64	64	33exemptions allowed by law.
65	65	34 The commissioner shall promulgate regulations necessary for the administration of this
66	66	35subsection.
67	67	36 SECTION 2. A city or town, by vote of its town meeting, town council or city council,
68	68	37with the approval of the mayor, where required by law, may exempt a qualified residential rental
69	69	38property from property taxation. The amount of the exemption shall be determined by the
70	70	39municipality but shall not exceed an amount equal to the tax otherwise owed on the property
71	71	40based on the assessed value of the property. Further, such exemption is limited to a percentage,
72	72	41as determined by the city or town, of the difference between the maximum HOME rent limit for
73	73	42the participating jurisdiction as defined by the United States Department of Housing and Urban
74	74	43Development and the pro rata amount of rent per unit.
75	75	44 Nothing in this act shall limit the authority of a city or town to provide additional relief
76	76	45from local property taxes to incentivize renting residential units to low-income families with
77	77	46children and seniors.
78	78	47 The owner of a dwelling qualifying for exemption under this section shall submit to the
79	79	48municipality or its agent documentation, including but not limited to a signed lease, necessary to
80	80	49confirm the eligibility of the rental.
81	81	50 SECTION 3. This act shall be effective for tax years beginning on or after January 1,
82	82	512023.