Bill > H4723

This bill establishes a new chapter in Massachusetts law, Chapter 40X, to create Supplemental Infrastructure Financing for Transportation, or SIFT districts, which allow municipalities to capture increased tax revenue generated by improvements to transportation infrastructure. A SIFT district is a designated area within a municipality where the "original assessed value" of properties is established on a "base date," which is typically the last property tax assessment before the district is created. Any increase in property tax revenue above this original assessed value, known as "tax increment," can then be collected by the municipality and used to finance specific "transportation projects," such as road construction, transit stations, or rail extensions, as defined by the Massachusetts Department of Transportation (MassDOT). To implement this, the Secretary of MassDOT and a municipality must enter into a "SIFT agreement" that details the project, the SIFT district boundaries, how tax increment revenue will be calculated and remitted, and the term of the agreement. This agreement must be approved by the municipality through a public hearing and a vote, and any significant amendments require re-approval. Once approved, the municipality's assessor will certify the original assessed value, and subsequent annual increases in assessed value within the district will be considered tax increment, which the municipality must then set aside and remit according to the SIFT agreement. MassDOT will be responsible for creating the rules and regulations necessary to implement this new financing mechanism.