Boston council approves home-rule petition to authorize targeted real-estate transfer fee to fund affordable housing and senior relief

The Boston City Council voted on April 15 to advance a home-rule petition that would authorize the city to assess a targeted real-estate transfer fee of up to 2 percent on high-value property sales, exempting the first $2,000,000 of any transaction. Councilor Colette Zapata, chair of the Committee on Government Operations, presented the committee report recommending passage and described the measure as a narrowly tailored tool to generate locally controlled revenue for affordable housing while expanding senior property-tax relief.

"This policy is tightly calibrated and narrowly defined," Zapata said, noting the exemption for the first $2,000,000 of a sale and the petition’s requirement that adoption be through local ordinance. The committee’s analysis presented to council projected that the measure could generate approximately $180,000,000 over four years, figures Zapata cited in urging colleagues to support the petition.

Supporters including Councilor Santana and Councilor Lujan framed the fee as a way to capture value from high-end transactions and direct it to the Neighborhood Housing Trust and senior relief programs. "Those benefiting from the most high-value property transfers will contribute to housing justice for our most vulnerable residents," Santana said.

Opponents warned about adding another levy during tight economic times. Councilor Flynn said he did not support "another tax, especially during these challenging economic times," and registered a no vote during the roll call. Councilor Murphy also recorded a no vote.

The home-rule petition, which authorizes up to but does not require a 2 percent fee, leaves the decision about local adoption to the council through ordinance and includes periodic adjustment safeguards. The council took a roll-call vote and the chair announced the matter passed and will move forward in the legislative process. The next procedural step for a home-rule petition is consideration by the state Legislature; if enacted, the city would still need to adopt implementing ordinances to set rates, exemptions, and administration.

Advocates and committee members emphasized that the proposal pairs targeted revenue with senior relief and local oversight, while critics emphasized the need for careful legislative scrutiny and clarity about impacts on transactions and the real-estate market. The council record shows the committee recommended passage and the council’s roll-call recorded multiple yes votes and at least two no votes; the chair declared the item adopted.