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Political Outlook
After several months of political wrangling between
Governor Patrick and the Legislature on a series of
reform bills, taxpayers will soon face up to a billion
dollars in new taxes. Patrick had made his support for
a 25% increase in the sales tax contingent on pension
reform, ethics reform and transportation reform. The
higher sales tax is estimated to generate $900 million
annually in revenue by 2011. In addition to new taxes,
the $27.4 billion budget includes $1.5 billion in
one-time federal stimulus funds and $2.5 billion in
spending cuts. The budget also taps $199 million from
the "rainy day fund" leaving only $600 million in
reserves down from $2 billion just a year ago.
GBREB Supports Clarification of Data Privacy Law
GBREB is supporting SB173 "An Act Insuring the
Privacy of Certain Data" sponsored by Senator Michael
Morrissey (D-Quincy). Following the passage of a data
privacy law in 2007, regulators have grappled with how
to develop rules for the protection of personal
information without unfairly burdening the business
community. Originally set to take effect in May this
year, the deadline has been extended to January 1,
2010. GBREB has expressed concern that delaying the
compliance deadline will not address fundamental issues
of concern and that as a practical matter businesses may
experience difficulty adhering to the new regulations.
SB173 allows for flexibility in the use of specific
technology to protect information, takes into account
the size and scope of a business, and clarifies
conflicting standards with federal law. The legislation
is currently before the Joint Committee on Consumer
Protection & Professional Licensure.
Click here to see a copy of the regulations |
Click here to see a copy of the 2007 data privacy law
Expiring Use Bill Advances
Legislation establishing a right of first refusal
process for the sale of so called "expiring use"
properties has been reported out of the Housing
Committee. Expiring use properties were developed in
the 1960's & 1970's by private developers under a
contractual agreement with the federal government that
required the property to remain affordable as defined by
HUD. The affordability of housing units receiving
subsidies is not permanently assured and after a set
period of time, owners are allowed to convert their
building to market rate. Historically, GBREB has only
supported the notion that the property would become
market rate by operation of law, with no additional
burden on the property. The proposal reported out of
committee is co-sponsored by Committee Chairs Susan
Tucker and Representative Kevin Honan and is similar to
legislation passed by the Senate last year. GBREB
continues to support H1201 drafted by a diverse group of
owners and their attorneys sponsored by Representative
David Flynn (D-Bridgewater). GBREB testified in strong
support of H1201 at a public hearing held in May and
urged lawmakers to carefully consider the myriad of
legal issues that these expiring contracts pose.
GBREB Opposes Deeds Excise Surcharge
GBREB recently expressed opposition to H2933 "An Act
Establishing a Deed Excise Surcharge".
http://www.mass.gov/legis/bills/house/186/ht02pdf/ht02933.pdf.
The proposed legislation would impose an 18% surcharge
onto the existing deeds excise tax in Massachusetts
(currently set at $4.56 per thousand of sale price).
By adding this surcharge onto the existing deeds excise
tax owners will pay hundreds of additional dollars in
tax for selling their property. The bill is
currently before the Joint Committee on Revenue.
Expansion of Hotel Motel Tax
Stopped In Budget
GBREB was successful in stopping an
expanded application of the hotel motel tax as part of
the Commonwealths annual budget. Language
expanding the application of the hotel motel tax to
single family homes and corporate apartment rentals was
adopted as an amendment to the Senate version of the
budget but later rejected by the conference committee.
The victory is a temporary reprieve as other bills
expanding the hotel motel tax still remain before the
legislature
Earlier this year, GBREB testified before the Joint
Committee on Revenue in opposition to several bills that
would have expanded the tax. GBREB expressed
concern it would create substantial new tax reporting
and accounting problems for property owners who would be
required to comply with the same requirements currently
imposed on hotels, motels and bed & breakfasts.
Current requirements mandate all persons operating a
transient accommodation obtain a certificate of
registration from the Department of Revenue and report
monthly income-regardless of whether they generate
income or not.
40B
GBREB will be submitting an amicus
brief in the matter of Hollis Hills, LLC v. Town
of Lunenburg Zoning Board of Appeals, with the
Housing Appeals Committee. This is an affordable
housing case under Massachusetts General Laws, chapter
40B. In this case the municipality denied the
issuance of a comprehensive permit. Due to the
severe nature of the current economic downturn, and the
fact that local market rate housing had declined in
values so sharply, the local municipality believed the
community no longer had a need for the creation of
affordable housing under 40B because the low sales
prices for market rate units basically satisfied that
local demand. 40B was never intended to be applied
in this way. |
