Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
Chapter 59 of the General Laws is hereby amended by striking out section 25, as amended by chapter 156 of the acts of 1985, and inserting in place thereof the following section:-
Section 25. The assessors in any city or town, except Boston, may add to the amount to be assessed not more than five per cent thereof, or such larger amount as the commissioner may approve, although the limit of taxation as fixed in any city may by such overlay be exceeded, such amount to be used only for avoiding fractional divisions of the amount to be assessed in the apportionment thereof and for abatements granted on account of property assessed for the fiscal year for which the overlay is made or of taxes in the warrant of which the overlay is a part, but any balance in the overlay account, in excess of the amount of the warrant remaining to be collected or abated, as certified by the board of assessors, shall be transferred by the board of assessors, with written notice of the transfer to the chief executive officer, to a reserve fund to be used for extraordinary or unforeseen expenses or the Pension Reserve Fund, established pursuant to section five D of chapter forty. This section shall apply to fire, water and improvement districts.