Amendment ID: S2016-33

Amendment 33

Local Option Water Infrastructure Surcharge

Messrs. Rodrigues, Pacheco and Michael O. Moore move to amend the bill by inserting, after SECTION 24, the following section:-

 

SECTION__.  Said Chapter 40 is hereby amended by inserting after section 39M the following section:-

 

SECTION 39N. (a) Notwithstanding the provisions of chapter 59 or any other general or special law to the contrary, any city or town which accepts the provisions of this section, upon the approval by the legislative body and their acceptance by the voters of a city or town on a ballot question at the next regular municipal or state election, may impose a water infrastructure surcharge on real property at a rate up to, but not exceeding 3 per cent of the real estate tax levy against real property, as determined annually by the board of assessors. The amount of the surcharge shall not be included in a calculation of total taxes assessed for purposes of section 21C of said chapter 59.

 

(b) All exemptions and abatements of real property authorized by said chapter 59 or any other law for which a taxpayer qualifies as eligible shall not be affected by this section. A taxpayer receiving an exemption of real property under a clause of section 5 of chapter 59 specifically listed in section 59 of said chapter 59 shall be exempt from any surcharge on real property established under this section. The surcharge to be paid by a taxpayer receiving any other exemption or an abatement of real property authorized by said chapter 59 or any other law shall be reduced in proportion to the amount of such exemption or abatement.

 

(c) Any amount of the surcharge not paid by the due date shall bear interest at the rate per annum provided in section 57 of said chapter 59.

 

(d) A person claiming an exemption from any surcharge under subsection (b) may apply to the board of assessors, in writing, on a form approved by the commissioner of revenue, on or before December fifteenth of the year to which the tax relates, or 3 months after the date the bill or notice was sent, whichever is later. Any person aggrieved by the decision of the assessors, or by their failure to act, upon such application may appeal as provided in sections 64 to 65B, inclusive, of chapter 59. Applications for exemption under this chapter shall be open for inspection only as provided in section 60 of chapter 59.

 

(e) Notwithstanding the provisions of section 53 of chapter 44 or any other general or special law to the contrary, a city or town that accepts this section shall establish a separate account to be known as the Municipal Water Infrastructure Investment Fund, into which shall be deposited all monies from the surcharge collected under this section. The municipal treasurer shall be the custodian of such fund. The treasurer may invest the funds in such separate account in the manner authorized by sections 55 and 55A of chapter 44. Any interest earned thereon shall be credited to and become part of such separate account. The authority to approve expenditures from the fund shall be limited to the local legislative body and the municipal treasurer shall pay such expenses in accordance with chapter 41 of the general laws. The expenditures of revenues from the fund shall be exclusively used for maintenance, improvements and investments to municipal drinking, waste and storm water infrastructure assets.

 

(f) This section shall only take effect in a city or town upon the approval by the legislative body and their acceptance by the voters of a city or town on a ballot question at the next regular municipal or state election; provided, however, that the provisions of this section shall take effect on July first of the fiscal year after such acceptance, or later fiscal year as the city of town may designate.

 

(g) Upon acceptance of this section and upon the assessors’ warrant to the tax collector, the accepted surcharged shall be imposed.

 

(h) After receipt of the warrant, the tax collector shall collect the surcharge in the amount and according to the computation specified in the warrant and shall pay the amounts so collected, quarterly or semi-annually, according to the schedule for collection of property taxes for the tax on real property, to the city's or town's treasurer. The tax collector shall cause appropriate books and accounts to be kept with respect to such surcharge, which shall be subject to public examination upon reasonable request from time to time.

 

(i) The remedies provided by chapter 60 for the collection of taxes upon real estate shall apply to the surcharge on real property pursuant to this section.

 

(j) A city or town that has accepted this section may revoke its acceptance, or amend the amount of the surcharge, in the same manner as they were accepted by such city or town. Any monies remaining in the fund upon revocation shall be expended in a manner consistent with this section. A city or town that has accepted this section may revoke its acceptance or amend the amount of the surcharge in the same manner as it was accepted by such city or town under this section; provided, however, that it may not amend the applicable surcharge rate more often than once in any 12 month period.