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H 5457

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

194th Legislature (2025-2026) Introduced by Hadley Luddy

Provincetown could impose a 0.5% real estate transfer fee on $1M+ transfers, funding two local affordable housing trusts.

Bill reported favorably by committee and referred to the committee on House Steering, Policy and Scheduling
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Bill Summary · H 5457

Overview

  • Bill: H 5457
  • Session: 194th (Massachusetts)
  • Jurisdiction: Provincetown, MA
  • Title: An Act authorizing the town of Provincetown to impose a 0.5% real estate transfer fee
  • Filed: May 20, 2026
  • Primary sponsors: Representative Hadley Luddy; Senator Julian Cyr
  • Status: Referred to the Massachusetts Senate/House committee on Revenue (as of 5/26/2026)

Purpose and Intent

  • Authorizes the Town of Provincetown to impose a real estate transfer fee of 0.5% on certain property transfers.
  • The fee revenue is designated for targeting affordable housing initiatives within Provincetown.

Key Provisions

  • Levy and Scope
    • A real estate transfer fee of 0.5% (one-half of 1 percent) is imposed on the transfer of any real property interest in Provincetown with a purchase price of $1,000,000 or greater.
    • Liability: The purchaser is primarily liable for the fee; contractual allocations of responsibility between buyer and seller do not alter this liability.
    • Destination: Fees collected in each fiscal year are deposited equally into two local housing-related trusts:
    • Town Year Round Market Rate Rental Housing Trust
    • Provincetown Affordable Housing Trust
  • Exemptions (Partial List)
    • A first-time homebuyer who will reside in the home for at least five years (with a lien recorded on the land for the exempted amount plus accrued interest/penalties if conditions are not met).
    • Transfers to U.S. or Commonwealth government entities, the Town of Provincetown, or their instrumentalities/subdivisions (e.g., Provincetown Housing Authority).
    • Transfers without additional consideration to confirm/correct/modify a previously made transfer.
    • Transfers of convenience with minimal consideration (under $100) such as name changes, transfers into/out of trusts.
    • Transfers to charitable or religious organizations under specified state law provisions, where property is used for public charitable or religious purposes.
    • Transfers between close family members (e.g., spouses, parents/children, siblings, grandchildren, etc.).
    • Transfers of units covered by a year-round housing deed restriction.
  • Administration and Enforcement
    • Timing: The fee is due at the time of the transfer of the real property interest.
    • Interest: Unpaid amounts accrue interest at the same rate used for unpaid property taxes in Provincetown.
    • Notification: The Town must notify the buyer by registered or certified mail of any unpaid fee.
    • Collection: All fees and interest constitute a personal debt of the buyer and may be pursued via contract action.
  • Effective Date
    • The act takes effect upon passage (i.e., upon formal enactment).

Affected Parties and Impacts

  • Primary Beneficiary:
    • Provincetown, which would receive a new funding stream for affordable housing programs via two dedicated trusts.
  • Property Buyers:
    • Buyers of real property in Provincetown with a purchase price of $1,000,000 or more would face a 0.5% transfer fee, payable at transfer.
  • Exempted Parties/Transfers:
    • Government entities, certain family transfers, charity/religious organizations, certain transfers to correct or adjust existing transfers, and transfers of units with year-round housing restrictions.
  • Housing Programs:
    • The two named trusts (Year Round Market Rate Rental Housing Trust and Affordable Housing Trust) would administer the collected funds for housing initiatives.

Procedural and Timeline Notes

  • Presented as a local option bill enabling Provincetown to impose the fee.
  • The bill indicates local approval is required and has, per the sponsor's note, “Revenue” implications for local use.
  • Action History: Referred to the Committee on Revenue (as of May 26, 2026).

Potential Considerations

  • Fiscal Impact: Would create a new revenue stream for Provincetown’s housing programs, potentially affecting real estate transaction costs for high-value properties.
  • Policy Interaction: Exemptions reflect common housing policy objectives (e.g., helping first-time buyers, preserving affordability, and protecting transfers for governmental and charitable purposes).
  • Administrative Burden: Requires local administration, annual allocation to two housing trusts, and enforcement mechanisms for delinquent payments.

If you’d like, I can compare this bill to similar local real estate transfer fee authorities in Massachusetts or provide a plain-language FAQ for residents and real estate professionals.

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

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