An Act establishing a special commission to study property tax relief and local aid reform

194th Legislature (2025-2026) Introduced by Bud Williams

Establishes a 13-member commission to study local property taxes, explore reducing reliance on them, and boost local aid with a final report due by June 30, 2027.

Referred to the committee on House Rules

Overview

An Act establishing a special commission to study property tax relief and local aid reform seeks to create a dedicated group to examine Massachusetts’ local property tax system, explore avenues for reducing or phasing out reliance on property taxes, and assess ways to increase local aid to cities and towns without compromising local services. The commission would produce a report with findings and recommendations by mid-2027.

Purpose and intent

Evaluate the Commonwealth’s current system of local property taxes.

Explore mechanisms for municipalities to reduce or gradually phase out parts of the property tax system.

Assess options for increasing local aid to cities and towns to lessen dependence on property taxes while preserving service levels.

Consider the impacts of any reductions or reforms on taxpayers, property owners, business owners, municipalities, local services, and other stakeholders.

Review any other relevant matters the commission deems important.

Key provisions

Establishment: A special legislative commission to study local property taxes and related reform.

Membership (13 members total):

House and Senate chairs of the Joint Committee on Revenue or their designees.
1 member from the House appointed by the Speaker.
1 member from the Senate appointed by the Senate President.
1 member from the House appointed by the House Minority Leader.
1 member from the Senate appointed by the Senate Minority Leader.
1 representative appointed by the Massachusetts Municipal Association, Inc.
1 representative appointed by the Massachusetts Taxpayers Foundation, Inc.
1 representative from the Department of Revenue appointed by the Commissioner of Revenue.
4 members appointed by the Governor with expertise in tax policy or municipal budgeting.

Public engagement: The commission must hold at least 3 public hearings, in geographically diverse locations, to solicit input from taxpayers, municipal officials, policy and budgeting experts, homeowners, business owners, and state officials.

Timeline: Report due no later than June 30, 2027, to the clerks of the House and Senate, and to the Ways and Means committees and the Joint Committee on Revenue.

Who would be affected

Municipalities and local officials (potential reforms to property tax structure and increased local aid).

Property taxpayers and property owners.

Homeowners and business owners (impacts dependent on any proposed tax relief or reform measures).

State policymakers and agencies involved in revenue, budgeting, and local aid allocation (Department of Revenue, Ways and Means, Joint Revenue).

Stakeholders represented by the Massachusetts Municipal Association, Inc. and the Massachusetts Taxpayers Foundation, Inc.

Procedural and timeline aspects

Establishment of a 13-member commission with specified appointment categories, including legislative leadership, representatives from local government organizations, a DOR representative, and governor-appointed experts.

Mandatory public hearings (no fewer than 3) in diverse regions of the state.

Final report due by June 30, 2027, with findings and potential legislative or policy recommendations.

Reports to be distributed to key legislative offices and committees (House and Senate clerks; Ways and Means; Joint Committee on Revenue).

Bill