The proposed bill, titled "An Act enabling a local option for a real estate transfer fee to fund affordable housing," seeks to amend Chapter 44 of the General Laws of Massachusetts by allowing cities and towns to impose a real estate transfer fee on property transfers. This fee is designed to generate funds specifically for affordable housing initiatives and includes definitions for terms such as "affidavit of transfer fee," "affordable housing purposes," and "municipal affordable housing trust fund." Local governments will have the authority to set varying transfer fee rates based on property classifications and purchase prices, with a minimum fee of 0.5% and a maximum of 2%. The bill also outlines exemptions for certain transactions, such as those below a specified monetary threshold, gifts, and transfers involving government entities.

In addition to establishing the transfer fee framework, the bill requires local entities to create rules and procedures for its implementation and mandates the submission of an annual report detailing the fees collected and their intended use for affordable housing. It also provides a process for individuals to appeal the transfer fee amount or any denial of exemptions, allowing them to petition the appellate tax board within 60 days of receiving a denial notice. The executive office of housing and livable communities, in collaboration with the department of revenue, will develop regulations to enforce these provisions, including stipulations for the forfeiture of unutilized revenue collected for affordable housing purposes.

Statutes affected:
Bill Text: 44-55C