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S 1930

Relates to certain railroad penalties; repealer

2025 Regular Session Introduced by Rob Rolison and 1 co-sponsor

Allows municipalities to impose a local property tax surcharge up to 2% to fund affordable housing, with exemptions and a dedicated housing trust fund.

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Bill Summary · S 1930

Bill Summary — S.1930 (filed 1/6/2025)*

*Note: the provided metadata contains conflicting titles and sponsor lists. This summary is based on the bill text supplied (an act inserting Chapter 44C into the Massachusetts General Laws to authorize a local affordable housing surcharge).

Purpose

Allow Massachusetts cities and towns to adopt a dedicated local property tax surcharge to raise revenue for affordable housing by amending the General Laws with a new Chapter 44C: Local Affordable Housing Surcharge.

Key provisions

  • Authorizing statute: Creates Chapter 44C, permitting municipalities that accept the chapter to impose an affordable housing surcharge on real property tax bills.
  • Surcharge rate: Up to 2.0% of the annual real estate tax levy for each parcel, as determined annually by the local board of assessors.
  • Exclusion from Prop 2½ calculation: The surcharge is explicitly excluded from the “total taxes assessed” calculation under section 21C of chapter 59.
  • Local adoption process:
    • Requires a two-thirds vote of the local appropriating authority (per section 21C, chapter 59) and voter approval as a ballot question at the next regular municipal or state election.
    • Becomes effective July 1 of the fiscal year after voter acceptance (or a later fiscal year chosen by the municipality).
  • Exemptions and reductions:
    • Existing statutory real estate exemptions/abatements under chapter 59 remain in force.
    • Homeowners qualifying for certain low-income or low/moderate-income senior housing exemptions (specific clauses cited in chapter 59) are fully exempt from the surcharge.
    • Other exemptions/abatements reduce surcharge proportionally.
    • Local authority may vote to accept optional exemptions for:
    • Domiciles of persons qualifying for local low-income or low/moderate income senior housing;
    • Class 3 (commercial) and class 4 (industrial) properties in classified-rate cities;
    • A $100,000 value exemption per taxable residential parcel; and/or
    • A $100,000 value exemption per taxable class 3/class 4 parcel.
  • Administration and collection:
    • Assessors issue a warrant to the tax collector; the surcharge is collected on the same schedule and with the same remedies as regular property taxes (chapter 60).
    • Unpaid surcharge amounts accrue interest per section 57 of chapter 59.
    • Collected funds must be deposited into an affordable housing trust fund established under section 55C of chapter 44 (or special legislation).
    • Books/accounts for the surcharge are public on reasonable request.
  • Appeals and deadlines: Exemption applications follow the same deadlines and appeal rights as exemptions under chapter 59 (sections 59, 64–65B).
  • Revocation/amendment: A municipality may revoke or change (but not more than once in a 12‑month period) the surcharge by the same adoption/approval process; remaining monies on revocation must be transferred to an affordable housing trust.

Who is affected

  • Property owners: residential, commercial, and industrial parcels may be subject to up to a 2% surcharge on their property tax levy unless exemptions apply.
  • Municipal governments: may secure a new local revenue source for affordable housing and must administer the surcharge, exemptions, accounting, and remittance to an affordable housing trust.
  • Low‑income homeowners and certain exempted classes: protected by specified exemptions or proportional reductions.

Implementation & timeline

  • Local legislative approval (two‑thirds vote) and voter referendum at the next regular election are required.
  • Effective date: July 1 of the fiscal year after voter approval (or later as designated).
  • Tax collectors remit proceeds quarterly or semi‑annually per local collection schedules.

Potential impacts

  • Revenue: Provides a predictable, locally controlled funding stream dedicated to affordable housing.
  • Equity: Effects depend on which exemptions a municipality adopts; optional exemptions (e.g., $100,000 per parcel or exemptions for seniors/low‑income owners) can reduce regressivity.
  • Administration: Municipalities will incur administrative costs for assessment, exemption processing, and trust fund management.
  • Property tax burden: Could modestly increase property tax bills (up to 2% of the levy) unless offset by exemptions or other local policy choices.

Notes & caveat

  • This summary is derived from the bill text for Chapter 44C included in the materials. The surrounding metadata (title, sponsor lists, and some procedural entries) appears inconsistent with the text; confirm the official bill file for authoritative procedural history and sponsors.
  • Legislative actions listed in the material include introduction, committee referrals, and a scheduled hearing (09/09/2025) — consult the legislature’s official docket for current status.

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

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