Bill
H 3061
Massachusetts municipalities could levy a 15% transfer fee on real property purchases by nonresident buyers, funding local affordable housing via a certified recording process.
Status & procedural timeline
- Bill number: H 3061 (House Docket No. 4207) — filed Jan 17, 2025; prefiled Dec 5, 2024; introduced and read first time Jan 14, 2025.
- Referred to: Committee on Judiciary and (later) Committee on Revenue.
- Hearing scheduled: Sept 15, 2025 (A‑2, 1:00–5:00 PM).
- Related: replaces HD 4207; similar prior filing: House No. 2746 (2023–2024).
- Note: The version text provided includes an unrelated South Carolina draft criminalizing online impersonation; that text does not appear to be part of the Massachusetts H.3061 real‑estate measure.
Purpose / intent
- The bill is intended to discourage nonresident (foreign) speculation in Massachusetts real estate and to generate local funding for affordable housing by imposing a one‑time fee on transfers of real property interests to “nonresident purchasers” (defined as any person who is not a U.S. citizen or national).
Key definitions (selected)
- “Nonresident”: any person not a citizen or national of the United States.
- “Nonresident purchaser”: transferee/grantee/recipient of a real property interest who is a nonresident.
- “Purchase price”: broadly defined to include cash or equivalents, assumption of seller obligations, principal of seller financing, fair market value of noncash consideration, etc. (excludes current, non‑overdue municipal tax liens).
- “Real property interest”: broadly includes present or future legal/equitable interests, beneficial interests (trust beneficiary), partnership/LLC interests, stockholder interests, options to purchase, contracts for sale, and transferable development rights — with specific exclusions (easement dominant estates, short leases < 30 years, certain reversionary rights, mortgagee interests).
Core provisions
- Fee: a 15% fee is imposed on the purchase price when a nonresident purchaser acquires any real property interest in a city or town that adopts (accepts) the act.
- Liability: the fee is legally the liability of the nonresident purchaser; private agreements reallocating payment do not alter purchaser liability.
- Payment procedure: the fee must be paid to the city/town (or its designee) at the time of transfer and accompanied by a copy of the deed/instrument (if any) and sworn affidavits from the purchaser and seller attesting to the true purchase price and any claimed exemption. The municipality issues a certificate of payment or exemption.
- Recording control: the register of deeds shall not accept for recording (except mortgage deeds) any deed lacking the municipality’s certificate. The text states failure to comply with this recording requirement does not affect the validity of the instrument.
- Funds use: fees are deposited by the municipal treasurer into the city/town’s affordable housing trust fund (per G.L. c.44, §55C or special act).
- Refund: within 7 days after issuance of a certificate, the purchaser may return it with a sworn affidavit that the transfer was not consummated and receive a refund.
- Exemptions: expressly exempts transfers where the property will be used as the purchaser’s principal place of residence. (The provided text is truncated after the start of additional exemption language; the full list/conditions are not available in the supplied excerpt.)
Who is affected
- Directly affected: nonresident purchasers acquiring real property interests in municipalities that adopt the act; sellers and their legal representatives who must participate in the affidavit process; municipal treasurers and affordable housing trust funds; registers of deeds (administrative recording step).
- Indirectly affected: real estate markets in adopting municipalities, buyers using intermediaries or corporate structures, and local housing affordability programs (which would receive the fee revenues).
Administrative & legal notes
- Municipal adoption: fee applies only in cities/towns that “accept the provisions of this act” (municipal opt‑in).
- Enforcement and compliance will require municipal procedures for affidavit review, certificate issuance, and recording verification.
- The bill’s foreign‑buyer targeting and broad definitions (purchase price and covered interests) may raise legal and policy questions (e.g., federal preemption, equal protection, commerce clause, immigration/status determination, and avoidance via intermediaries), but the text supplied does not include legislative findings or an express legal analysis.
Limitations / missing text
- The provided bill text is truncated mid‑section; additional exemptions, definitions, procedural details, penalties, or implementation mechanics may appear in the omitted portions.
- Also included in the materials received was an unrelated South Carolina draft about online impersonation; that appears to be extraneous and is not part of H.3061 as filed in Massachusetts.
Bottom line
- H.3061 would allow Massachusetts municipalities to impose a 15% transfer fee on purchases of real property interests by non‑U.S. citizens/nationals, with revenue dedicated to local affordable housing trusts, subject to procedural affidavits, a recording‑certificate requirement, and limited exemptions (including principal residence). The proposal is designed to deter nonresident speculation and fund housing but would require municipal adoption and raises administrative and potential legal questions.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
