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SD 1229

An Act creating a graduated deed excise tax for affordable housing

194th Legislature (2025-2026) Introduced by Lydia Edwards

Massachusetts bill creates graduated deed excise tax on property transfers to fund affordable housing development through dedicated revenue stream.

House concurred
0
WeVote Research Nonpartisan
Bill Summary · SD 1229

Legislative bill overview

SD 1229 creates a graduated deed excise tax on real estate transfers in Massachusetts, with revenues dedicated to affordable housing initiatives. The tax structure appears to increase based on property value, targeting higher-value transactions while potentially exempting or reducing rates on lower-value sales.

Why is this important

Massachusetts faces a severe affordable housing shortage, with median home prices exceeding $500,000 in many markets. A dedicated funding mechanism from real estate transactions could generate substantial, ongoing revenue for housing development without requiring general tax increases or appropriations from the state budget.

Potential points of contention

  • Impact on real estate market: Higher transfer taxes may reduce transaction volume, particularly affecting middle-income homebuyers and sellers who could face increased closing costs
  • Economic competitiveness: Neighboring states without similar taxes could attract buyers and sellers, potentially shifting Massachusetts real estate activity across state lines
  • Defining "affordable": The bill's effectiveness depends on how affordable housing is defined, who qualifies, and how funds are allocated—details that will determine whether benefits reach intended populations or create administrative burden

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

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