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H 3058

An Act enabling a local option empty homes tax on vacant units in residential buildings

194th Legislature (2025-2026) Introduced by Mike Connolly

Allows Massachusetts cities to adopt a local vacancy tax on unoccupied units in 6+ unit buildings, at 12.5% of annual rent, to incentivize renting and boost housing supply.

Accompanied a study order, see H5182
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Bill Summary · H 3058

Summary: House Bill H 3058 — Empty Homes Tax (Local Option)

Overview

House Bill 3058, introduced February 27, 2025 by Rep. Mike Connolly, creates a framework for a local option tax on vacant residential units in buildings with at least six dwelling units. The bill adds a new Chapter 64O, “Empty Homes Tax,” to the General Laws and allows municipalities to adopt a vacancy tax on vacant units. A hearing is scheduled for September 15, 2025 (A-2) as part of the bill’s ongoing consideration.

Purpose and Intent

  • To give cities and towns in Massachusetts the power to address housing vacancy by imposing a tax on vacant residential units.
  • To incentivize owners to rent or otherwise occupy empty units, thereby increasing the availability of rental housing.
  • To integrate vacancy tax administration with existing local property tax and registration frameworks where feasible.

Key Provisions

Definition of a Vacant Residential Unit

  • A unit in a residential building with at least 6 dwelling units that is not occupied for residential purposes for at least 90 consecutive days; or
  • A newly constructed unit with a certificate of occupancy that has not been rented within 90 days of issuance, in a building with at least 6 units.

Local Option Framework

  • Municipalities may impose the vacancy tax if they opt into Chapter 64O per procedures in Chapter 4, Section 4.
  • The tax is strictly a local option; adoption is at the discretion of the city or town.

Tax Rate

  • The tax rate is 12.5% of the annualized last agreed-upon monthly rent paid to the owner by a tenant or subtenant.
  • Alternatively, a municipality may set a different rate or amount.

Registration and Collection

  • Owners must register vacant units with the local assessor within 30 days of vacancy, using a form provided by the assessor.
  • Registration may request information on property security, future plans, and insurance coverage, among other locally required details.
  • The assessor two-way confirms the excise and commits it to the collector of taxes; the tax is due on the same date property taxes are due.

Exemptions and Relief

  • The tax does not apply to vacant units undergoing redevelopment or reconstruction with permits issued and pursued diligently.
  • Exemptions may apply for circumstances in the prior six months, including: significant medical events (≥30 days), military deployment (≥60 days), inheritance, or ongoing court/title actions.
  • Eligible individuals may apply for exemption for a given calendar year.

Administrative Alignment

  • Local rental housing inspection and registration programs may incorporate the vacancy tax requirements into their existing processes.

Affected Parties

  • Property owners of vacant residential units in covered buildings (6+ units).
  • Municipalities that choose to adopt the tax, plus their assessors, collectors, and local registrars.
  • Tenants indirectly affected through incentives to fill vacancies.

Procedural and Timeline Details

  • Introduced: February 27, 2025.
  • Legislative actions show the Senate concurred and the bill was referred to the House Committee on Revenue on February 27, 2025.
  • Hearing: Scheduled for September 15, 2025, 1:00 PM–5:00 PM, in Room A-2.

Related Information

  • Similar matter previously filed in 2023-2024 as House No. 3660.
  • Related bill: HD 1288 (House Docket No. 1288) accompanies the same proposal by Rep. Connolly.

This bill, if enacted, would provide a locally administered mechanism to tax vacant units, potentially influencing housing turnover and rental availability while threading into existing local registration and tax processes.

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

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