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HD 4361

An Act authorizing the town of Provincetown to impose a 0.5% real estate transfer fee

194th Legislature (2025-2026) Introduced by Julian Cyr and 1 co-sponsor

Provincetown may impose a 0.5% real estate transfer fee on property transfers, with the first $250k yearly going to capital improvements and the rest to the General Fund.

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Bill Summary · HD 4361

Summary: House Bill HD 4361 — An Act authorizing the town of Provincetown to impose a 0.5% real estate transfer fee

Purpose

Authorize the town of Provincetown to impose a real estate transfer fee of 0.5% on the purchase price of any transfer of real property interests within Provincetown. The bill specifies who pays, how the revenue is used, and sets forth exemptions, enforcement, and timing. The intention is to provide local revenue to support municipal needs, including capital improvements and general fund operations.

Key Provisions

  • Tax/Rate and Taxable Event

    • A real estate transfer fee equal to 0.5% of the purchase price on the transfer of any real property interest in Provincetown.
    • Liability for the fee rests with the purchaser, regardless of any private agreements about who bears the cost.

  • Allocation of Revenue

    • The first $250,000 collected in each fiscal year is deposited into the town’s Capital Improvement Stabilization Fund.
    • All remaining fee revenues in that fiscal year go into Provincetown’s General Fund.

  • Exemptions (Section 2)
    The following transfers are exempt from the fee:

    • A first-time homebuyer who occupies the home for at least 5 years (with a lien running with the land for the exempt amount plus interest/penalties until conditions are met).
    • Transfers to government entities (U.S. government, Commonwealth, Provincetown and instrumentalities such as the housing authority).
    • Transfers without additional consideration to confirm/correct/modify a previously made transfer.
    • Transfers of convenience with consideration under $100 (e.g., name changes, trusts-related transfers).
    • Transfers to charitable or religious organizations for public charitable or religious purposes.
    • Transfers between certain family members (e.g., relatives, marriage partners, parents/children, siblings, etc.).

  • Payment, Interest, and Collection (Section 3)

    • Fee is due at the time of transfer.
    • Interest on any unpaid amount accrues at the rate used by the town for unpaid real estate taxes.
    • If unpaid, the town must notify the buyer by registered/certified mail.
    • Fees and interest are a personal debt of the buyer and may be recovered by contract.

  • Effective Date (Section 4)

    • The act takes effect upon passage.

Who/What is Affected

  • Affected Entity: Purchasers of real property interests in Provincetown.
  • Impact on Revenue: Creates new municipal revenue—split between a dedicated Capital Improvement Stabilization Fund (first $250k per year) and the General Fund (remaining revenue).
  • Exemptions Impact: Reduces or eliminates fee for certain transfers, notably among family, government transfers, first-time homebuyers meeting conditions, charitable/religious transfers, and transfers with minimal consideration.

Procedural and Timeline Aspects

  • Origin and Status: Introduced as a joint petition by Rep. Luddy and Sen. Cyr; filed January 31, 2025; status in the provided text is “proposed bill” with local approval noted in the sponsor materials.
  • Local Approval: The bill’s caption indicates local approval has been received, reflecting a locally authorized mechanism subject to state law governing such local option fees.
  • Implementation: Upon enactment and passage, the provisions would take effect immediately, with the transfer fee applying to transfers in Provincetown going forward.

Potential Implications

  • Provides a dedicated revenue stream for Provincetown, supporting capital projects and operations.
  • Could affect real estate transaction costs for buyers in Provincetown, particularly for non-exempt transfers.
  • The exemptions include protections for first-time homebuyers under criteria, family transfers, and charitable/government transfers, shaping net revenue.
  • Administrative requirements include prompt payment, interest accrual, and official notification processes.

Note: This summary reflects the bill text as filed and does not constitute legal advice.

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

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