Bill filed to let Eastham impose up to 3% real estate transfer fee to support housing, wastewater

A bill filed in the Massachusetts Legislature on June 18, 2025 would authorize the town of Eastham to impose a real estate transfer fee of up to 3% on the purchase price of property in the town above an exemption of $1. The filing, House Docket No. 4839 (House No. 4576), was presented by Representative Hadley Luddy and Senator Julian Cyr and is captioned "An Act authorizing the town of Eastham to impose a 3% real estate transfer fee."

The fee, as written, would be the liability of the purchaser and would be payable to the Town of Eastham. The bill specifies that funds collected in each fiscal year shall be apportioned and deposited into the Town's Affordable Housing Trust Fund and/or its Wastewater Stabilization Fund as determined by the Select Board. The text notes that local approval has been received.

The measure lists a set of exemptions. It would exempt first-time homebuyers who live in the home for at least five years; such exemptions are to be secured by a lien recorded on the deed for the amount of the fee exempted plus accumulated interest and penalties until the conditions are met. Other exemptions include transfers to or from the federal government, the Commonwealth, the Town of Eastham and their instrumentalities (such as the Eastham Affordable Housing Trust); transfers made without additional consideration to confirm or correct a prior transfer; convenience transfers of under $100 (for name changes and certain trust transfers); transfers by operation of law (including court orders); transfers to qualifying charitable or religious organizations where property will be held solely for charitable or religious public purposes; transfers among family members (spouses, parents and children, grandchildren, stepparents and stepchildren, brothers and sisters); and transfers of units subject to year-round or affordable housing deed restrictions approved by the Executive Office of Housing and Livable Communities, MassHousing, the Town of Eastham, or their successors.

Section 1 of the bill allows the fee and the exemption amount to be amended by a two-thirds vote of an Annual or Special Town Meeting. Section 3 permits the town, by bylaw, to adopt additional requirements, exemptions and regulations to implement and enforce the act provided such bylaws remain consistent with the act and do not eliminate or reduce any exemptions set forth in the bill.

The bill sets collection and enforcement rules: the fee is due at the time of transfer; the buyer must pay interest on unpaid amounts at the same rate the town collects on unpaid real estate taxes; the town may use remedies available for real property tax collection; the town must notify a buyer by registered or certified mail of any failure to discharge the fee; and unpaid fees and interest constitute a personal debt of the buyer and may be recovered in an action of contract.

The act would take effect 90 days after the date of passage. The bill text does not specify a projected revenue amount, an implementation timeline beyond the effective date, or any fiscal estimates. Any change to the fee or exemption level would require the two-thirds town-meeting vote specified in the bill and any local implementation details would be set by the Select Board and by town bylaws consistent with the act.