Legislation to allow communities the ability to impose a new sales tax on homes and commercial properties is getting increased attention on Beacon Hill, where two prominent leaders in the Massachusetts House of Representatives recently expressed their interest in considering measures to create transfer taxes. That’s concerning, given that transfer taxes would add to the already high cost of housing in Greater Boston and create an additional obstacle to housing production. It’s also problematic since this type of tax discriminates against home buyers and sellers, singling them out to pay for initiatives that benefit the community at-large.
However, nearly one dozen communities – including Arlington, Boston, Cambridge, Concord, Medford and Somerville – have introduced or are considering bills to impose a new tax on residential and commercial real estate transactions, and Gov. Healey’s housing bond bill, aka the
Affordable Homes Act, includes language that would allow any community in the state to create a new tax of 0.5% - 2% on the portion of a home or commercial building sold that exceeds $1 million. The Greater Boston Real Estate Board and REALTOR® Association oppose the passage of these measures, and you can add your voice to urge their defeat as well. To participate, simply
respond to the recent Call-For-Action on Transfer Taxes issued by the Massachusetts Association of REALTORS® urging state legislators to oppose the creation of a new sales tax on homes and commercial property. By doing so, a pre-drafted letter outlining industry opposition to the various legislative proposals will be sent to your state senator and representative.