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H 3141

An Act relative to the small commercial tax exemption

194th Legislature (2025-2026) Introduced by Kim Ferguson and 5 co-sponsors

Local governments could grant property tax exemptions to multi-tenant and mixed-use parcels if at least 50% of occupants or the commercial space are eligible businesses.

Accompanied a study order, see H5203
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Bill Summary · H 3141

Summary of H.3141: An Act relative to the small commercial tax exemption

Overview

H.3141, introduced February 27, 2025, seeks to expand the Commonwealth’s small commercial tax exemption by authorizing local cities and towns to grant exemptions on certain parcels with multiple commercial occupants (and on mixed-use parcels) based on occupancy criteria. The bill is sponsored by Representatives Jones, Haggerty, and several cosponsors, and is under consideration by the Massachusetts Revenue committee.

What the bill would do

  • Amends Section 5I of Chapter 59 (the property tax exemption framework) by adding new language that local governing bodies may provide exemptions for:
    • Parcels with multiple commercial occupants if at least 50% of the occupants are eligible businesses.
    • Mixed-use parcels (residential plus commercial) if at least 50% of the commercial portion of the parcel is comprised of eligible businesses.
  • The exemption is optional and would be at the discretion of the local governing body, within the existing framework for applying the small commercial exemption.

Key provisions and changes

  • Eligibility trigger (multiple-occupant commercial parcels): Local governments may grant an exemption when 50% or more of the tenants are “eligible businesses.”
  • Eligibility trigger (mixed-use parcels): If the parcel includes residential and commercial space, the exemption may be granted if 50% of the commercial space is occupied by eligible businesses.
  • Local control: The bill empowers municipalities to adopt exemptions within their own local processes, subject to current state law governing the small commercial exemption.

Who is affected

  • Parcel owners and tenants in cities and towns that already implement or choose to implement the small commercial exemption.
  • Local assessors and property tax administrators who would administer the exemption on qualifying parcels.
  • Businesses that meet the “eligible” criteria used by the exemption (as defined in existing law or by future regulations).

Procedural and timeline details

  • Introduced: February 27, 2025.
  • Referred to: Joint Committee on Revenue (February 27, 2025).
  • Legislative actions show ongoing scheduling of hearings:
    • Hearing originally scheduled for July 22, 2025 (canceled on July 14; new date TBD).
    • New hearing scheduled for November 7, 2025, from 10:00 AM to 2:00 PM in Gardner Auditorium.
  • Related bill: HD 3496 (appears to be the same measure or a related version); House Docket No. 3496 filed January 17, 2025.

Potential impact and considerations

  • Local fiscal impact: Allowing exemptions on more parcels could reduce property tax revenue locally, depending on how many parcels qualify and the magnitude of exemptions granted.
  • Administrative impact: Municipalities would need to determine eligibility based on occupancy data and definitions of “eligible businesses,” which may require new processes or data collection.
  • Policy alignment: Expands targeted relief for small or multi-tenant commercial properties and could influence commercial district vitality by lowering tax burdens for qualifying parcels.

Sponsors

  • Representative Bradley H. Jones, Jr. (primary), with cosponsors including Richard M. Haggerty, Kimberly N. Ferguson, Alyson M. Sullivan-Almeida, Todd M. Smola, and Paul K. Frost.

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

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