BOSTON, MA (FRANKLIN COUNTY NOW) — A high-value real estate transaction tax has been proposed to help address the housing shortage in Massachusetts. The tax could help pay for an estimated 3,210 affordable homes over five years if municipalities adopt a 1% tax on real estate transactions valued over $1 million.
The proposed tax is part of Governor Healey’s $4.1 million housing bill allowing municipalities to adopt a tax between 0.5-2% on transactions above $1 million or the median single-family home price in the county.
The tax is one of several measures addressing the 200,000 housing shortage in the state. Another policy in the bill seeks to make accessory dwelling units, or ADUs, permissible by right, where currently they require permits.
The bill is currently in the House, before going to the Senate.