Bill would let Provincetown charge 0.5% real estate transfer fee, with exemptions and first $250,000 to capital fund

A joint petition filed Jan. 31, 2025 would authorize the town of Provincetown to impose a 0.5% real estate transfer fee on purchases of property in the town, making the purchaser liable for the charge and directing how the revenue must be allocated.

The bill, filed as House No. 4577 (House Docket No. 4361) by Representative Hadley Luddy and Senator Julian Cyr, would require the town to deposit the first $250,000 collected each fiscal year into Provincetown's capital improvement stabilization fund and place the remaining revenues into the town's general fund. The measure states the fee equals 0.5% of the purchase price and is payable at the time of transfer.

The bill enumerates exemptions. It would exempt first-time homebuyers who occupy the home for at least five years; in those cases a lien would "run with the land" for the amount exempted plus interest and penalties until the conditions are met. Other exemptions include transfers to the U.S. government, the commonwealth, the town of Provincetown and their instrumentalities (for example, the Provincetown Housing Authority); transfers made without additional consideration to correct or supplement a previous transfer; transfers of convenience with consideration under $100; transfers to charitable or religious organizations held solely for public charitable or religious purposes; and transfers between family members and spouses as specified in the bill.

On collection, the bill requires that the fee be due at the time of transfer. It allows the town to charge interest on unpaid amounts at the same rate the town charges on unpaid real estate taxes, requires the town to notify buyers by registered or certified mail of any failure to pay in full, and makes unpaid fees and interest a personal debt of the buyer that the town may recover in contract.

The act's language states it would take effect on passage. The filing form notes local approval has been received. The petition also cites a similar matter filed in the prior session (House No. 2916, 2023-2024). No vote or legislative action on the bill is recorded in the filing text.

If enacted, the proposal would create a new local revenue source and a set of eligibility rules and collection mechanisms that the town and buyers would need to follow; the bill text clarifies limits and enforcement tools but does not specify implementation timelines or administrative procedures beyond interest, notice and recovery mechanisms.