Real Estate

Massachusetts Eyes Mansion Tax to Fund Affordable Housing

  • Opponents say fee could further squeeze commercial properties
  • Officials in almost 30 municipalities have supported the bill

The Massachusetts State House in Boston.

Photographer: Phil Roeder/Moment RF/Getty Image
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Massachusetts is jumping into the national debate on the affordable housing crisis with a proposal to tax high-value property sales.

Governor Maura Healey’s $4 billion housing bond bill, the state’s biggest-ever investment in its residential stock, includes a provision allowing cities to impose a transfer fee of 0.5% to 2% on property sales exceeding $1 million. The revenue generated would go toward affordable housing projects.