The proposed bill establishes a new chapter, CHAPTER 72, titled the "Non-Owner Occupied Property Tax Act," within Title 44 of the General Laws, which introduces a statewide tax on non-owner occupied residential properties valued at $800,000 or more, effective from July 1, 2025. The rationale behind this tax is to ensure that non-owner occupied properties contribute fairly to the local tax base, as they often increase demand for public services without corresponding tax contributions. The tax rates are tiered based on property value, with rates of 0.4% for properties valued between $800,000 and $1,000,000, 0.5% for those between $1,000,000 and $2,000,000, and 0.6% for properties exceeding $2,000,000.

The bill also grants the tax administrator authority to enforce tax collection, including the ability to offset unpaid taxes against state payments due to the taxpayer. It outlines procedures for taxpayers to appeal assessments, request refunds, and maintain records for three years. Key insertions include provisions for the tax administrator to assess taxes based on available information if returns are not filed correctly, as well as penalties for negligence or intentional disregard of tax laws. The act is set to take effect on January 1, 2026, and includes specific guidelines for the administration of the new tax system.