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S 1971

An Act creating a graduated deed excise tax for affordable housing

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

Massachusetts bill S 1971 creates a graduated deed excise tax on property sales, with revenue directed to affordable housing programs to address state housing shortages.

Reporting date extended to Monday July 20, 2026
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Bill Summary · S 1971

Legislative bill overview

S 1971 proposes a graduated deed excise tax in Massachusetts, meaning property transfers would incur taxes that increase based on sale price. Revenue generated from this tax would be dedicated to affordable housing initiatives. The bill aims to address housing affordability challenges through a progressive taxation mechanism on real estate transactions.

Why is this important

Massachusetts faces a significant affordable housing shortage, with rising property values pricing out lower and middle-income residents. This bill represents a potential funding mechanism to support affordable housing development without relying solely on general tax revenue. The graduated structure suggests higher-priced properties would contribute more, potentially affecting luxury real estate markets while minimizing impact on modest home sales.

Potential points of contention

  • Market impact: Critics may argue the tax could reduce real estate transaction volume, lower property values, or discourage investment in the state, particularly among developers of market-rate housing
  • Regressivity concerns: Despite being graduated, the tax applies to all transactions, potentially affecting first-time homebuyers and middle-class families even if rates are lower on lower-priced homes
  • Implementation complexity: Determining appropriate graduated tax rates and brackets requires careful calibration to balance revenue generation with economic activity—rates too high could be counterproductive

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

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