Massachusetts House Bill H3058

Massachusetts 2025-2026 Regular Session

• Introduced: 2/27/25
• Refer: 2/27/25

Caption

Enabling a local option empty homes tax on vacant units in residential buildings

Impact

The implementation of this bill could significantly alter housing dynamics within communities, especially where vacancy rates are high. Municipalities choosing to adopt the provisions would have the authority to set a tax rate, which could be as high as 12.5% of the last agreed rental price for the vacant unit. By doing so, towns and cities might generate additional revenue that could be invested in local services or initiatives aimed at improving housing accessibility and combating homelessness.

Summary

House Bill 3058 proposes the establishment of a local option empty homes tax targeting vacant units in residential buildings within Massachusetts. The bill aims to enable municipalities to impose an excise tax on vacant residential units, defined as units that have not been occupied for at least 90 consecutive days. This initiative seeks to address housing shortages by potentially incentivizing owners of vacant properties to either rent or sell them, thereby making them available to those in need of housing.

Contention

However, there are points of contention regarding this bill. Opponents may argue that imposing a tax on vacant homes could be unfair to property owners facing genuine challenges that prevent them from renting their properties promptly. Furthermore, the bill includes clauses that exempt units under certain conditions, such as undergoing redevelopment or the owner's extenuating circumstances, which could raise concerns about enforcement and compliance among local assessors. Critics may also express skepticism about the effectiveness of such a tax in actually increasing housing availability.