SENATE DOCKET, NO. 368 FILED ON: 1/13/2009
SENATE . . . . . . . . . . . . . . No. 1257
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The Commonwealth of Massachusetts
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In the Year Two Thousand Nine
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An Act establishing residential tax abatement zones in Gateway Cities..
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
SECTION 1. Chapter 23B of the General Laws is hereby amended by inserting after paragraph (v) a new paragraph:-
(w) the Executive Office of Housing and Economic Development shall provide technical assistance to Gateway Cities who adopt Residential Tax Abatement Zones, as defined by Section 59B of Chapter 59 of the General Laws, and shall monitor the impacts of the program.
SECTION 2. Chapter 59 of the General Laws is hereby amended by inserting after Section 59A the following new section:-
SECTION 59B. Property Tax Abatement Zones in Gateway Cities
(a) As used in this section, the following terms shall, unless the context clearly requires otherwise, have the following meanings:-
“Gateway Cities”, as defined by the Department of Housing and Community Development, the cities of Barnstable, Brockton, Chelsea, Chicopee, Everett, Fall River, Fitchburg, Haverhill, Holyoke, Lawrence, Leominster, Lowell, Lynn, Malden, Methuen, New Bedford, Pittsfield, Revere, Salem, Springfield, Taunton, Westfield and Worcester.
“Residential Tax Abatement Zone”, a housing development zone in a Gateway City, to be designated by the mayor or manager and the city council, for the purpose of providing residential property tax abatement on all owner-occupied properties.
“Under-utilized property”, a lot or part of a building in which the maximum number of residential units permitted under existing zoning regulations, building codes or approved variances has not been met.
“Occupied Residential Unit”, a residential unit that is presently occupied or has been vacant for less than two years.
“Incremental improvements”, an increased property value created by the construction of new residential units or improvements to a property
(b) There is hereby established a Residential Tax Abatement Zone program available to all Gateway Cities. No later than July 1, 2010, the mayor or manager and city council for each Gateway City are authorized to designate a specific area located in or around the Gateway City downtown as the Residential Tax Abatement Zone.
(c) All property located within the zone is eligible for this program with the exception of any occupied residential unit.
(d) Gateway Cities may offer full or partial property tax abatement within Residential Tax Abatement Zones on any incremental improvements to vacant or under-utilized property.
(e) The length of the abatement period will be designated for not fewer than ten years and not greater than twelve years.
(f) At the conclusion of the abatement period, Gateway Cities may offer a reduced property tax rate in the Residential Tax Abatement Zone for a period of up to three years. During each year of this period, Gateway Cities may incrementally increase the abatement tax rate in order to ease the transition back to the full property tax burden.
(g) The Department of Revenue shall promulgate rules and regulations, including the above referenced guidelines.