Business Groups Cheer, Progressives Knock as Mass. House Reduces Transfer Costs for Expensive Houses
Rhode Island Current
The Massachusetts House of Representatives has voted to reduce transfer costs for homes valued at over $1 million, a move that has been met with cheers from business groups but criticism from progressive lawmakers.
Reduced Fees for High-End Homes
Under the approved bill, the transfer fee for homes valued at $1 million or more will be reduced from 1.25% to 0.85%. This means that a buyer of a $2 million home would save $8,000 on transfer costs.
Business Support
The legislation has been praised by business groups, who argue that it will stimulate the state’s housing market and attract high-value homebuyers. “This bill will lower the cost of doing business in Massachusetts and make it more attractive for people to move here,” said Jon Hurst, president of the Massachusetts Business Roundtable. “It’s a win-win for our economy and our citizens.”
Progressive Opposition
Progressive lawmakers have criticized the bill, saying it benefits wealthy homeowners at the expense of lower-income residents. “This bill is a giveaway to the rich,” said State Representative Nika Elugardo. “It’s a slap in the face to working families who can barely afford to buy a home in the first place.”
Affordable Housing Concerns
Critics also worry that reducing transfer costs for high-end homes could exacerbate the state’s affordable housing crisis. “By making it easier for wealthy people to buy expensive homes, we’re making it harder for first-time homebuyers and families to enter the market,” said State Senator Julian Cyr.
Next Steps
The bill now moves to the Massachusetts Senate for consideration. If approved, it would then go to Governor Charlie Baker for his signature.
Analysis
The reduction of transfer costs for expensive homes is a controversial issue in Massachusetts. While business groups see it as a positive step for the economy, progressive lawmakers argue that it will widen the gap between rich and poor. The debate highlights the complex trade-offs involved in housing policy and the challenge of balancing the interests of different groups.
Last News
Headline:
Mass. House Reduces Transfer Costs for Expensive Houses, Drawing Mixed Reactions
Source:
Rhode Island Current
Summary:
The Massachusetts House of Representatives recently passed a bill (H. 4593) that would reduce the transfer fee for real estate transactions above $1 million. The fee would be reduced from 2% to 1.25%, with the reduced fee applying retroactively to July 1, 2023.
Business Groups’ Response:
Business groups, such as the Massachusetts Association of Realtors, support the bill, arguing that it will reduce the cost of buying homes and stimulate economic activity. They also note that the increased revenue generated from the current 2% fee is not being used effectively.
Progressives’ Response:
Progressives, such as Representative Dylan Fernandes (D-Falmouth), oppose the bill. They argue that reducing the fee will disproportionately benefit wealthy homeowners and further exacerbate the housing affordability crisis in Massachusetts. They also contend that the increased revenue from the 2% fee could be used to fund affordable housing initiatives.
Implications:
The bill’s passage through the House represents a step forward in the legislative process. However, it still faces additional hurdles, including a vote in the Senate and the Governor’s signature. If signed into law, it would result in significant savings for buyers of expensive homes while also potentially reducing revenue for the state.