Cape Cod Assembly Narrowly Backs Real Estate Tax
CAPE COD REGIONAL GOVERNMENT
What happened: The Cape Cod Regional Government’s Assembly of Delegates narrowly adopted a home rule petition February 18th requesting state approval for an opt-in transfer tax on real estate sales over $1 million.
Why it matters: The measure aims to combat the region’s severe housing shortage by giving towns a new local revenue stream to fund year-round housing initiatives.
By the numbers: The petition cleared the Assembly with 10 delegates in favor, representing 51.4% of the county’s population. Delegates representing Bourne, Sandwich, Mashpee, Barnstable, and Chatham voted against the petition.
If authorized by the state, participating towns could levy a tax of 0.5% to 4% on the portion of sales exceeding $1 million.
90% of the collected revenue would return to the originating town, with 10% retained by the regional government for regional projects and program administration.
State of play: During a marathon meeting, delegates amended the petition multiple times to address critics’ concerns. Key revisions included:
Mandating that local adoption requires both town meeting approval and a town-wide ballot vote.
Exempting primary residence owners aged 62 or older who have lived in the property for at least 10 years.
Changing the word “fee” to “tax” throughout the document.
What they’re saying: Deputy Speaker Daniel Gessen argued the tax is essential for reversing aging demographic trends, noting that “We are dealing with generational demographic shifts that are really going to change the face of Cape Cod.”
Yes, but: Dozens of residents and several delegates strongly opposed the measure. Real estate broker John Julius called it a “thievery tax” that would unfairly punish retiring homeowners.
What’s next: The petition heads to the Massachusetts Legislature. If lawmakers pass the special act, individual towns will decide whether to opt in.