The Bay State Banner, July 23, 2020: Luxury real estate tax could net Boston millions in revenue
Nearly 40 states have a real estate transfer fee on luxury home sales to funnel funding into affordable housing and balance the effects of gentrification. According to the Institute for Policy Studies (IPS), Boston could have earned more than $16 million for affordable housing projects, through just two luxury buildings, with such a surcharge.
City Councilor Lydia Edwards and Council President Kim Janey drafted a home rule petition that would give Boston the power to receive about 2% from real estate selling for $2 million or more, but it has sat in the Massachusetts House Committee on Ways and Means since December 2019.
“I don’t understand what the holdup is,” Edwards told the Banner.
She added, “It’s not just a Boston thing. Several towns and cities are all saying, we want the opportunity to extract some kind of wealth for our housing stock. We’re all dealing with the housing crisis.”