HOUSE . . . . . . . No. 4942
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The Commonwealth of Massachusetts
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HOUSE OF REPRESENTATIVES, July 30, 2024.
The committee on Ways and Means, to whom was referred the Bill relative to property tax classification in the city of Boston (House, No. 4805), reports recommending that the same ought to pass with an amendment substituting therefor the accompanying bill (House, No. 4942) [Local Approval Received].
For the committee,
AARON MICHLEWITZ.
FILED ON: 7/30/2024
HOUSE . . . . . . . . . . . . . . . No. 4942
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The Commonwealth of Massachusetts
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In the One Hundred and Ninety-Third General Court
(2023-2024)
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An Act relative to property tax classification in the city of Boston.
Whereas, The deferred operation of this act would tend to defeat its purpose, which is to regulate the property tax classification limits in the City of Boston beginning in fiscal year 2025, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.
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: Notwithstanding section 1A of chapter 58 of the General Laws or any other general or special law to the contrary, the commissioner of revenue shall further adjust the minimum residential factor of the city of Boston determined under said section lA of said chapter 58 for fiscal years 2025, 2026, 2027 and 2028, if adoption of such factor for any such year would result in the residential property class bearing a higher percentage of the total property tax levy than the percentage of the total property tax levy imposed on the residential property class than in the prior fiscal year. The new minimum residential factor for such year shall be: (i) for fiscal year 2025, 45 per cent subject to such adjustment upward as may be required to provide that the percentage of the total tax levy imposed on any class of real or personal property shall not exceed 200 per cent of the full and fair cash valuation of the taxable property of the class divided by the full and fair cash valuation of all taxable real and personal property in the city of Boston; (ii) in fiscal year 2026, 47 per cent subject to such adjustment upward as may be fiscal year 2026, 47 per cent subject to such adjustment upward as may be required to provide that the percentage of the total tax levy imposed on any class of real or personal property shall not exceed 197 per cent of the full and fair cash valuation of the taxable property of the class divided by the full and fair cash valuation of all taxable real and personal property in the city of Boston; (iii) in fiscal year 2027, 49 per cent subject to such adjustment upward as may be required to provide that the percentage of the total tax levy imposed on any class of real or personal property
shall not exceed 190 per cent of the full and fair cash valuation of the taxable property of the class divided by the full and fair cash valuation of all taxable real and personal property in the city of Boston; (iv) in fiscal year 2028, 50 per cent subject to such adjustment upward as may be required to provide that the percentage of the total tax levy imposed on any class of real or personal property shall not exceed 183 per cent of the full and fair cash valuation of the taxable property of that class divided by the full and fair cash valuation of all taxable real and personal property in the city of Boston; (v) in fiscal year 2029 and thereafter, the determination of the minimum residential factor shall be conducted in accordance with the provisions detailed in section IA of chapter 58. Payments made under section 38H of chapter 59 of the General Laws, and similar provisions of special acts, that are included in the tax levy for purposes of determining the minimum residential factor under said section 1A of said chapter 58 shall be so included in the determination of any factor under this section.
SECTION 2: (a) The city of Boston may elect to apply the original identified schedule or an alternative implementation schedule where the original years of 2025, 2026, 2027, 2028 and 2029 would be substituted with (i) 2026, 2027, 2028, 2029, 2030 respectively, or (ii) 2027, 2028, 2029, 2030, 2031 respectively.
(b) The schedule election in subsection (a) would be made upon notification to the department of revenue during the rate setting process of the first year of the schedule that the city of Boston is electing to implement. Once a schedule selection is made it may not be changed.