Bill > S1091

This bill amends the existing law governing local tax levies in cities and towns by adding a new provision that allows municipalities to exceed the standard maximum levy cap (currently set at 4%) for new housing units under specific conditions. The new provision, effective from December 31, 2025, permits cities and towns to levy additional taxes on new housing units if they meet several key requirements: the municipality must have issued over 10 certificates of occupancy during the fiscal year, the development project must include at least 10% low- or moderate-income housing units, the new units must be taxed using the same valuation methods as similar existing units, and the tax exemption is limited to the year of occupancy and two subsequent fiscal years. The bill aims to incentivize housing development by providing a temporary tax exemption for new residential construction, including single-family homes, multi-family dwellings, mixed-use developments, and converted buildings, with the goal of increasing municipal housing stock. The exemption requires approval from the city or town's governing body and is subject to existing regulations about municipal tax levies, ensuring that the new provision does not fundamentally alter the overall tax assessment framework.

Housing and Urban Affairs

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