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HD 4101

An Act authorizing the city of Cambridge to impose a real estate transfer fee

194th Legislature (2025-2026) Introduced by Marjorie Decker

Cambridge seeks state authorization to levy a real estate transfer fee on property sales to generate municipal revenue.

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Bill Summary · HD 4101

Legislative bill overview

HD 4101 would grant the City of Cambridge specific authority to impose a real estate transfer fee on property sales within its jurisdiction. This is a home rule petition that requires state legislative approval since municipalities need explicit authorization to create new tax mechanisms. The fee would apply to real estate transactions and would be collected at the point of property transfer.

Why is this important

Real estate transfer fees are a revenue mechanism that could generate significant municipal income from property sales without raising traditional property tax rates. For Cambridge, a high-value real estate market, such a fee could fund local services, affordable housing initiatives, or infrastructure improvements. However, it would directly increase the cost of buying or selling property in the city, potentially affecting housing affordability and market activity.

Potential points of contention

  • Housing affordability impact: Transfer fees increase transaction costs, which could be passed to buyers, potentially worsening an already tight housing market and raising barriers to homeownership
  • Economic competitiveness: Property buyers and sellers may choose to transact in neighboring municipalities without such fees, potentially reducing Cambridge's real estate market activity and the fee's actual revenue generation
  • Incidence of burden: Unclear whether the fee would fall primarily on buyers or sellers, and whether it would disproportionately affect first-time homebuyers, investors, or specific income groups

Compiled from official sources — confirm details with the bill’s official record.

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