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H 5464

An Act relative to real estate transfer fees and senior property tax relief in the city of Boston

194th Legislature (2025-2026) Introduced by Brandy Fluker-Reid

Boston may tax real estate transfers up to 2% (with a $2M exemption, adjustable) to fund affordable housing, plus expand senior property tax relief tied to AMI.

Referred to the committee on Revenue
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WeVote Research Nonpartisan
Bill Summary · H 5464

Overview

Bill H.5464 (Session 194th) from Massachusetts proposes to authorize a real estate transfer fee in the City of Boston and to extend and adjust senior property tax relief. The measure is framed as a tool to address housing affordability, discourage rapid property turnover, and fund housing-related programs via the Neighborhood Housing Trust. It includes detailed provisions on fee structure, exemptions, collection, reporting, and targeted adjustments to senior tax relief.

Purpose and intent

  • Acknowledges a housing emergency in Boston, citing affordability pressures, homelessness, and displacement.
  • Recommends using a transfer fee on certain real estate transactions to fund affordable housing initiatives, stabilize homeowners, and curb speculative market practices.
  • Aims to update and expand senior property tax relief in Boston to better reflect current income and housing costs.

Key provisions

  • Transfer Fee (Section 2): Boston may impose up to a 2% fee on:

    • The transfer of any real property interest within Boston, and
    • The transfer of a controlling interest in an entity that holds Boston real property (e.g., certain trusts or LLCs).
    • The seller bears the fee; the city may define “controlling interest” by ordinance.

  • Exempted Value (Section 3):

    • The first $2,000,000 of the purchase price is exempt from the fee.
    • The exempt amount can be adjusted every five years by City Council with Mayor’s approval, based on the change in median citywide sales price; the exempt amount cannot be reduced.

  • Collection and Administration (Section 4):

    • Fees paid to the City of Boston; alternative collection via agreement with Suffolk County Registry of Deeds allowed.
    • The city can adopt ordinances to collect and lien any unpaid fees, with standard property tax-like collection remedies.
    • All collected fees go to the city’s Neighborhood Housing Trust; portions may be reserved in annual budgets for housing programs (affordable/elderly housing, first-time buyers, etc.).

  • Documentation and Certification (Section 5):

    • Deeds must be accompanied by an affidavit detailing:
    • Purchase price,
    • Fee owed,
    • Basis for any exemptions.
    • A certificate of fee payment or exemption must be issued and recorded with the deed.

  • Exempt Transfers (Section 6):

    • Transfers between family members, transfers for convenience, and transfers to the U.S. government or Commonwealth entities are exempt (subject to ordinance definitions).

  • Administration and Additional Exemptions (Section 7):

    • City may adjust the fee amount and exemption framework by ordinance.
    • May grant additional exemptions for economically vulnerable populations, affordable housing developments, deed-restricted units, participants in city homebuyer programs, etc.

  • Annual Reporting (Section 8):

    • Requires an annual report detailing fee receipts by payer category, location, and unit type, plus the impact of senior tax relief and housing programs funded by the fee.

  • Senior Homeowner Property Tax Relief (Section 9):

    • Adjusts eligibility factors for Boston real property under clause 41C of §5, Ch. 59:
    • Increases exemption base from $500 to $1,500.
    • For income-related subclauses, uses up to 50% of Area Median Income (AMI) as adjusted for household size (updated annually).
    • Raises other income thresholds (previously $28k/$30k) to higher limits tied to AMI and household size.
    • Adjustments are to be made with the start of the fiscal year and are not subject to further modification by the second sentence of clause 41C.

  • Severance and Effective Date (Sections 10–11):

    • If any provision is beyond the General Court’s authority or preempted, it does not invalidate the remainder.
    • Effective date: immediate upon the Governor’s signature.

Who is affected

  • Property buyers and sellers in the City of Boston (fee liability on transfers, subject to exemptions).
  • Entities holding Boston real property (transfers of controlling interests may be taxed).
  • Boston residents eligible for senior homeowner property tax relief, via revised eligibility and exemption amounts.
  • The City of Boston (administrative authority to collect, enforce, and allocate funds).
  • The Suffolk County Registry of Deeds (potential role in fee collection if the city chooses that path).
  • Housing programs funded by the Neighborhood Housing Trust (through fee revenue).

Timeline and procedural notes

  • The bill specifies immediate effectiveness upon the Governor’s signing.
  • The exempt value is adjustable every five years by the City Council with Mayor’s approval, based on median citywide sales price growth.
  • Annual reporting is mandated to track receipts and program impacts.

Summary

H.5464 would authorize Boston to impose a real estate transfer fee of up to 2% (with a $2,000,000 exemption threshold, adjustable every five years) on most property transfers and certain transfers of controlling interests. Revenues would be deposited into Boston’s Neighborhood Housing Trust to support affordable housing, senior stability, and related programs, with potential for additional exemptions defined by ordinance. The bill also expands and modernizes the senior homeowner property tax relief by increasing base exemption amounts and tying some thresholds to Area Median Income. It requires documentation, provides administrative mechanisms for collection, and mandates annual reporting on fee receipts and program funding. Immediate enactment upon the Governor’s signature is requested.

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

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