MA H3166

Massachusetts cities and towns may impose a surcharge on real property taxes up to 2% of the real estate tax levy to fund affordable housing, with the surcharge excluded from Proposition 2½ levy limit calculations

Adoption requires a two-thirds vote of the local appropriating authority plus voter approval at a municipal or state election, taking effect July 1 of the following fiscal year

All surcharge revenue must be deposited into a municipal affordable housing trust established under Chapter 44 Section 55C or special legislation

Optional exemptions may be adopted for low-income residents, low/moderate-income seniors, commercial/industrial properties in towns with classified tax rates, or the first $100,000 of residential or commercial/industrial property value

Cities and towns may revoke acceptance or amend the surcharge rate (no more than once per 12 months) through the same two-thirds vote and voter approval process