Cape Cod adopts transfer fee on home sales over $1 million

"If approved, the petition would let towns adopt the fee through a Town Meeting vote and a subsequent town election. The fee could range from 0.5% to 4% on the portion of a home sale above a threshold of at least $1 million. For example, a $1.5 million sale with a 2% fee would apply only to the $500,000 above the threshold, generating $10,000. Towns could also add exemptions for first-time buyers, year-round residents, and retirees on fixed incomes."

"The county would collect the revenue but return 90% of it to the towns. Local governments could then use the money to buy deed restrictions, acquire land for year-round housing, or offer financial help to qualified buyers, among other tools allowed under the Seasonal Communities law. The remaining 10% would support a year-round housing trust, overseen by Select Board appointees from participating towns, covering administrative costs and regional housing efforts."

The Barnstable County Assembly of Delegates voted 10-5 after five hours to advance a home rule petition creating a local real estate transfer fee on home sales over $1 million. The petition now goes to the state legislature and would allow towns to adopt a fee via Town Meeting and a subsequent town election. Fees could range from 0.5% to 4% on the sale portion above at least $1 million, with possible exemptions for first-time buyers, year-round residents, and retirees on fixed incomes. The county would collect revenues, return 90% to towns, and allocate 10% to a regional housing trust for administrative and regional housing efforts.

Read at Boston.com