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HD 6152

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

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

Allows Provincetown to levy a 0.5% real estate transfer fee on property sales to fund local priorities and require oversight and reporting.

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Bill Summary · HD 6152

Overview

This Massachusetts House of Representatives ("HD") bill, titled An Act authorizing the town of Provincetown to impose a 0.5% real estate transfer fee, would authorize Provincetown to levy a 0.5% real estate transfer tax (RTT) on the sale or transfer of real property within the town, with specified uses and oversight provisions. The bill lists Hadley Luddy as a co-sponsor.

Purpose and intent

  • Enable Provincetown to generate revenue through a Real Estate Transfer Fee (RETF) of 0.5% on property transfers.
  • Provide dedicated funding for local priorities as determined by town governance, subject to statutory and regulatory controls.
  • Align Provincetown with other Massachusetts municipalities that leverage RTT to fund municipal needs, housing initiatives, infrastructure, or related programs.

Key provisions and changes

  • Authorization: Grants Provincetown the authority to impose a RETF of 0.5% on the consideration (purchase price) or value of real estate transfers occurring within the town limits.
  • Revenue use (anticipated): Funds collected would be designated for approved municipal purposes. The bill may specify eligible uses (e.g., affordable housing, community development, infrastructure, or general municipal services) and could require the town to adopt a spending plan or use restrictions.
  • Administration and collection: The RETF would be collected at the time of transfer, typically by the town’s assessing or treasury department, and remitted to the town in accordance with established procedures and timelines. The bill may specify reporting, audit, and transparency requirements.
  • Oversight and accountability: Provisions may require annual reporting on revenue raised, expenditures, and program outcomes to ensure accountability and compatibility with statewide fiscal rules.
  • Home rule considerations: The authorization is town-specific, not statewide; Provincetown would need to enact local by-laws or administrative steps to implement the RETF, consistent with state law.

Who would be affected

  • Property sellers: Those transferring real estate within Provincetown would be responsible for paying the 0.5% RETF as part of closing costs.
  • Real estate transactions in Provincetown: The market dynamics could be influenced by the added transfer cost, potentially affecting buyer/seller behavior.
  • Town of Provincetown: Receives new revenue streams that can be allocated to designated municipal programs and services.
  • Housing, infrastructure, and community programs: Potential beneficiaries if revenue is directed toward affordable housing initiatives, economic development, or infrastructure improvements.

Procedural and timeline considerations

  • Local authorization: While the bill would authorize the town to impose the RETF, Provincetown would need to adopt a local ordinance or by-law detailing implementation, collection procedures, and use of revenue.
  • Compliance: The town would need to ensure the RETF complies with state statutes governing real estate transfer taxes, budgetary rules, and any caps or sunset provisions (if present in the bill or existing law).
  • Reporting: If required, annual or periodic reporting on tax collections and program expenditure would be mandated.

Potential impacts and considerations

  • Fiscal impact on real estate transactions in Provincetown: A 0.5% RETF adds a transactional cost that could influence affordability and market activity, particularly in a year-round tourism-driven economy.
  • Revenue predictability: The amount raised would depend on property transfer activity, with busier years yielding higher revenue.
  • Policy trade-offs: Balancing revenue needs with potential effects on housing affordability and local economic activity.

Note: This summary reflects the bill’s stated aim and common features of RETF authorizations. For precise statutory language, currently enacted provisions, and any enacted amendments, consult the official bill text and Massachusetts legislative resources.

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

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