Bill > H2445

This bill, titled the Massachusetts Infrastructure Improvement Act, allows cities and towns to raise revenue for infrastructure improvements by imposing a surcharge on real property taxes, which can be up to 3 percent of the real estate tax levy. This surcharge, which is separate from the regular property tax calculation, would fund a dedicated "Infrastructure Improvement Fund" managed by the municipal treasurer and overseen by the legislative body. The bill defines "infrastructure" broadly to include public assets like schools, roads, and sidewalks, and allows for certain exemptions from the surcharge, such as for low-income housing occupants, commercial/industrial properties in classified tax rate municipalities, or up to $100,000 of a residential property's value. To implement this, the local legislative body must approve the surcharge and any exemptions, and then voters must accept the measure through a ballot question. The bill also establishes a state-level Massachusetts Infrastructure Improvement Trust Fund, which will disburse matching funds to municipalities that have adopted the surcharge, providing 30 percent of the revenue they raise locally. Municipalities can also issue bonds or notes to finance infrastructure projects and use funds from the Infrastructure Improvement Fund as local matching shares for state or federal grants. The bill outlines procedures for amending or revoking the surcharge after a certain period, ensuring that contractual obligations are met.