| By Mr. Hart (by request), a petition (accompanied by bill, Senate, No. 1660) of Joseph A. Ureneck for legislation relative to taxation for legislation to limit residential property tax. Revenue |
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
SECTION 1.
Section 38 of Chapter 59 of the General Laws, as appearing in the 2002 Official Edition, is hereby amended by inserting in the first paragraph, beginning in line 2 and following “ Section 38. The assessors of each city and town shall at the time appointed therefor make a fair cash valuation, ‘’ , the words “ subject to paragraph (a-e) of this Section 38, ’’.
Said Section 38 of Chapter 59 of the General Laws, as appearing in the 2002 Official Edition, is hereby further amended by adding the following new paragraphs (a-e) following the last paragraph of said Section 38 of Chapter 59 of the General Laws as appearing in the 2002 Official Edition:
(a) The "fair cash valuation" of Class one real property means the assessed valuation of real property as shown on the 1999-2000 tax bill under "total full valuation" or, thereafter, the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1999 assessment. All real property not already assessed up to the 1999-2000 full cash value may be reassessed to reflect that valuation. For purposes of this section, "newly constructed" does not include Class one real property that is reconstructed after a disaster, as declared by the Governor, where the fair market value of the real property, as reconstructed, is comparable to its fair market value prior to the disaster. For purposes of subdivision (a), the terms "purchased" and "change in ownership" do not include the purchase or transfer of real property between spouses since March 1, 1999, including, but not limited to, all of the following:
(1) Transfers to a trustee for the beneficial use of a spouse, or the surviving spouse of a deceased transferor, or by a trustee of such a trust to the spouse of the trustor.
(2) Transfers to a spouse that take effect upon the death of a spouse.
(3) Transfers to a spouse or former spouse in connection with a property settlement agreement or decree of dissolution of a marriage or legal separation.
(4) The creation, transfer, or termination, solely between spouses, of any co-owner's interest.
(5) The distribution of a legal entity's property to a spouse or former spouse in exchange for the interest of the spouse in the legal entity in connection with a property settlement agreement or a
decree of dissolution of a marriage or legal separation.(b) (1) For purposes of subdivision
(a), the terms "purchased" and "change in ownership" do not include the purchase or transfer of the principal residence of the transferor in the case of a purchase or transfer between parents and their children, as defined by the
Legislature, and the purchase or transfer of the first one million dollars ($1,000,000) of the full cash value of all other real property between parents and their children, as defined by the Legislature. This subdivision shall apply to both voluntary transfers and transfers resulting from a court order or judicial decree.(2) (A) Subject to subparagraph
(B), commencing with purchases or transfers that occur on or after the date upon which the measure adding this paragraph becomes effective, the exclusion established by
paragraph(1) also applies to a purchase or transfer of real property between grandparents and their grandchild or grandchildren, as defined by the Legislature, that otherwise qualifies under paragraph(1), if all of the parents of that grandchild or those
grandchildren, who qualify as the children of the grandparents, are deceased as of the date of the purchase or transfer.(B) A purchase or transfer of a principal residence shall not be excluded pursuant to subparagraph
(A) if the transferee grandchild or grandchildren also received a principal residence, or interest therein, through another purchase or transfer that was excludable
pursuant to paragraph.(1). The full cash value of any real property, other than a principal residence, that was transferred to the grandchild or grandchildren pursuant to a purchase or transfer that was excludable pursuant to paragraph
(1), and the full cash value of a principal residence that fails to qualify for exclusion as a result of the preceding sentence, shall be included in applying, for
purposes of subparagraph(A), the one million dollar ($1,000,000) full cash value limit specified in paragraph (1).
(c) The fair cash value base of individual Class one real property may reflect from year to year the inflationary rate not to exceed 2 percent for any given year or reduction as shown in the consumer price index or comparable data for the area under taxing jurisdiction, or may be reduced to reflect substantial damage, destruction or other factors causing a decline in value.
(d) This article shall take effect for the tax year beginning on July 1 following its passage.
(e) If any section, part, clause, or phrase hereof is for any reason held to be invalid or unconstitutional, the remaining sections shall not be affected but will remain in full force and effect.