Action Alert: Oppose the Transfer Tax
Governor Healey has proposed a major housing package which is about to be debated at the State House. SPOA has been following this bill since it was first introduced and has testified before the Housing Committee. While there are parts of the bill we support like zoning relief to create more accessory apartments, there was one section we made clear that we STRONGLY oppose, allowing communities to implement new transfer taxes on the sale of property.
No one has yet explained to us how taxing the sale of a home, investment property, or commercial property will lower the cost of housing and lead to more housing supply. Rather, transfer taxes make housing more costly for both sellers and buyers, while further depleting the available rental housing stock in the Commonwealth, thereby increasing rents and operating costs further.
As a small property owner, a transfer tax will have even more direct impact. After all, we are in the business of owning and managing property. Most of us don’t consider ourselves millionaires, but we may look like one for tax purposes the year we sell a property. Not only will we be hit by the state's new 4% surtax on incomes over 1 million, but now if communities like Boston, Cambridge, Brookline, and a couple of dozen others get their way, you could be paying a net tax of up to 2% on the sale.
Our friends at the Massachusetts Association of Realtors have spelled out this issue in more detail. The attached letter in the link below contains a thorough explanation as to why this plan should be rejected.
Please contact your state legislators to oppose this measure. We expect a vote in the House and Senate in the coming weeks.
As the letter says, please tell your legislators that we must pursue policies that create more housing and affordability in our state, instead of implementing taxes that will decrease competition and restrict the housing market further.
You can find your state representatives and senators by using this link.
