Bill
H 4051
Gives cities and towns discretionary power to shift property tax burden among classes and to tax derelict/abandoned properties more, with a limited state aid option for shortfalls.
An Act relative to establishing a municipal tax assessment increase limit
Note on docket contents
- The documents associated with this file appear to include two unrelated items: (1) a Massachusetts House bill (H 4051 / House Docket No. 3353) presented by Rep. Rita A. Mendes concerning municipal tax assessment authority; and (2) a South Carolina House resolution expressing sympathy on the passing of Peggy Hill. The legislative summary below focuses on the Massachusetts bill (the primary legislative text in this file). The Peggy Hill resolution is a separate ceremonial document and is unrelated to the tax legislation.
Purpose and intent
- The bill would amend Section 56 of Chapter 40 of the Massachusetts General Laws to (a) give cities and towns greater local discretion over how property tax burdens are allocated among classes and (b) permit certain higher taxation of long-abandoned/derelict property. It also creates a narrow, limited hardship application for municipalities to request funds from the Commissioner of Revenue to cover property tax shortfalls.
Key provisions
- Local discretion over tax-rate shifting: A city or town would have discretionary authority to determine (i) the residential tax rate factor shift and (ii) the portion of the property tax levy to be paid by commercial, industrial, and personal property classes — without being bound by the Commissioner of Revenue under section 1A of chapter 58.
- Taxation of derelict/abandoned property: Municipalities may choose to subject properties that have been registered as derelict or abandoned (residential, commercial, or industrial) for at least five (5) years to higher taxation.
- Hardship application for revenue shortfalls: A city or town may apply to the Commissioner of Revenue for coverage of a tax-levy shortfall arising during periods when the Commissioner has collected a tax surplus. Requests are limited — the amount applied for cannot exceed 5% of the applying municipality’s total tax levy.
Who is affected
- Municipal governments in Massachusetts (cities and towns): gain greater discretion in setting local tax shifts and taxing derelict property; gain a limited mechanism to request up to 5% of their tax levy to cover shortfalls.
- Property owners: residential, commercial, industrial, and personal property owners could see changes in tax burden depending on municipal decisions; owners of properties registered as derelict/abandoned for ≥5 years could face higher taxes.
- Commissioner of Revenue / state oversight: the bill reduces the Commissioner's binding control over local tax-rate shifts under chapter 58 section 1A and creates a new administrative role for hardship applications.
Procedural and timeline notes
- Filed/Presented: House Docket No. 3353, filed 1/17/2025; presented by Rep. Rita A. Mendes (11th Plymouth).
- Committee referral: Referred to the House Committee on Revenue (4/22/2025).
- Senate action: Senate concurred (4/24/2025).
- Hearings: Multiple hearings are listed (some rescheduled/cancelled): initially scheduled 07/22/2025; canceled 07/14/2025 (new hearing TBD); later hearing scheduled 11/07/2025 (Gardner Auditorium).
- Related bill: HD 3353 is noted as a replacement.
Potential implications
- Fiscal/local policy: The measure could shift tax incidence among property classes differently across municipalities, potentially producing uneven tax burdens statewide and reducing uniform oversight by the Commissioner of Revenue.
- Incentives: Higher taxes on long-abandoned or derelict properties aim to discourage long-term vacancy and encourage redevelopment, but would depend on municipal adoption.
- State-municipal relations: The 5% hardship application creates a limited state-level backstop for municipalities experiencing shortfalls, but also formalizes a constrained borrowing/assistance route tied to Commissioner's surplus collections.
If you want, I can: (a) draft a brief one-page explainer for municipal officials on implementation considerations; or (b) extract and map the exact statutory language change to Chapter 40, Section 56 for legal review.
Compiled from official sources — confirm details with the bill’s official record.
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