Each week, Mansion International poses a tax query to actual property tax attorneys. Right here is that this week’s query.
Q. I am considering of shopping for a house in Brookline, Massachusetts. My mates inform me I could need to cope with a mansion tax there. Is that true?
A. An actual property switch charge has been proposed in Brookline, Massachusetts, however the Massachusetts Legislature is unlikely to vote on it this 12 months.
Bill HD.5111 proposes a 2% charge on the quantity of a property sale that exceeds $500,000.
A typical house in Brookline prices simply over $1 million, in response to the true property web site Zillow. If the switch charge had been accredited, there could be a further 2% cost on about half that quantity.
The charge could be shared by the customer and the vendor, in response to the invoice.
Funds could be paid to the city of Brookline, simply exterior Boston, and the cash raised by the charge could be used for tasks associated to inexpensive housing, the invoice states. That might embrace renovation and rehabilitation of Brookline Housing Authority properties.
The proposal was accredited on the native degree in December 2019 and is awaiting a vote within the state legislature.
It’s “extraordinarily unlikely to succeed in the ground for a vote in 2020,” Rep. Tommy Vitolo, a Democrat who represents Brookline and sponsored the invoice, wrote in an e-mail. “The brand new session begins in 2021. The timeline on it changing into legislation—if ever—is admittedly anybody’s guess.”
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