Bill > H1550

This bill modifies the tax treatment of properties that replace public housing units, specifically addressing Payment in Lieu of Taxes (PILOT) agreements. Under the proposed legislation, buildings or structures owned by housing authorities, their controlled affiliates, or private entities that contain replacement housing units will be partially exempt from taxation. The tax exemption applies to the portion of the property dedicated to replacement units, with the exemption prorated based on the square footage of replacement units compared to other residential or commercial units in the same building. For the exempt portion of the property, the owner must pay a PILOT amount consistent with the valuation method typically used for housing authority real estate in that city or town. For the non-exempt portion of the property, standard real estate taxes will be assessed based on fair cash value, calculated using the same proportional ratio. This approach aims to provide financial flexibility for public housing replacement projects while ensuring that municipalities still receive some compensation for the properties.

Budget and Finance, Housing and Urban Affairs

https://malegislature.gov/Bills/194/H1550