Real Estate Lobby Fires Back On Transfer Fees
Lobby Told Lawmakers Local Option Transfer Tax Tould Set “A Dangerous Precedent”
After a legislative committee last week advanced bills that would allow municipalities where local officials had already signed off on the idea to impose a new fee on certain housing transactions, a pair of real estate groups are voicing concerns.
The Greater Boston Real Estate Board and Massachusetts Association of Realtors wrote to lawmakers Tuesday, saying that allowing the local option transfer tax would set “a dangerous precedent” with its costs “passed along to hit buyers even harder.”
“A sales tax on homes also stifles housing diversity and inclusivity. It violates principles of tax fairness, discriminating against the 2.5 percent of people in the state who buy or sell a home annually,” Theresa Hatton of the Massachusetts Association of Realtors and Greg Vasil of the Greater Boston Real Estate Board said. “It also increases the price to get into already expensive towns, discriminating against those looking to enter in favor of those who are already there.”
The organizations said they support other affordable housing initiatives, including Chapter 40B, the new Housing Choices program and the Community Preservation Act.
The Revenue Committee endorsed bills proposing transfer fees in Somerville, Provincetown, Concord, Boston, Arlington, Cambridge, Nantucket and Chatham. Meanwhile, the Housing Committee extended until May 9 its deadline to vote on legislation enabling municipalities to impose a fee on certain housing transactions to generate revenue to preserve affordable housing and fund new home construction.
Under the statewide opt-in bill (H 1377, S 868), the fee rate and exemptions would be set locally and the fee would apply only to sales above the statewide or county median single-family home price.
Supporters say the state’s high home costs challenge both family housing budgets and employers’ ability to retain workers, and that the fee would generate millions to put toward the problem.
