Section 21C of chapter 59 of the General Laws, as appearing in the 2020 Official Edition, is hereby amended by adding the following paragraph:-

(o) The local appropriating authority of any city or town may, by majority vote, seek voter approval to limit the annual increase on the total taxes assessed on real property classified as Class One, residential; provided, however, that the limit shall equal 3 percent of the annual increase or the percentage change in the Consumer Price Index published by the United States Department of Labor, Bureau of Labor Statistics, for such year, whichever is lower, for the principal residence of a taxpayer as defined in section 1 of chapter 188; provided further, that the limit shall not exceed 10 percent of the annual increase for said real property that is not the principal residence of a taxpayer as defined in said section 1 of said chapter 188; and provided further, that the total taxes assessed on said real property shall not exceed the rate based on the full and fair cash valuation of said property. The question submitted to the voters shall be worded as follows:-

“Shall the (city/town) of _________ be allowed to limit the annual increase on the total taxes assessed on real property classified as Class One, residential?

Yes ___ No ___.”

If a majority of the persons voting on the question shall vote “yes”, the local appropriating authority of the city or town shall be allowed to limit the annual increase on the total taxes assessed on real property classified as Class One, residential pursuant to this paragraph; provided, however, that any limits established under this paragraph shall apply automatically; provided further, that any limits established under this paragraph shall not apply to any increases in value to said real property resulting from improvements made by the taxpayer; provided further, that any limit established under this paragraph shall not apply in any fiscal year in which the real property is sold or otherwise transferred for consideration; and provided further, that should a taxpayer cease to reside or intend to reside in said real property as the taxpayer’s principal residence as defined in said section 1 of said chapter 188, the taxpayer shall notify the local assessor’s office within 30 days to avoid the assessment of any penalties or any other real estate obligations.