SB 181: Real property tax; partial exemption for repurposing underutilized structures for residential use.

Official summary

Abstract published by the legislature (via Open States). Text as published by the legislature; reproduced verbatim.

Real property tax; partial exemption for repurposing underutilized structures for residential use; local incentives. Permits localities to provide partial real estate taxation exemptions for converted real property where such conversion establishes a residential structure that has set aside at least 30 percent of the structure for households with a per capita income at or below 80 percent of the locality's median income or where the building owner is subject to an agreement with the Commonwealth or the locality regarding the provision of affordable housing. Localities have discretion to determine (i) whether a converted building qualifies for the partial exemption, (ii) any additional restrictions and conditions, (iii) whether the exemption is the amount equal to the increase in assessed value or a percentage of such increase resulting from the repurposing of the structure, and (iv) the length of time the exemption will run with the land, not to exceed 15 years. The bill provides that, at any time a building for which its owner claims a partial exemption no longer meets the requirements to receive such exemption, the locality may recapture all or a portion of the exemption granted in the immediately preceding year. Further, if a building owner that claims an exemption as described by the bill sells the building for which he is claiming the exemption and, after the sale, the property no longer meets the requirements described by the bill, the purchaser shall be subject to a penalty. The building owner shall provide written notification of the partial exemption to the purchaser. The bill also permits localities to grant tax incentives or provide regulatory flexibility to qualifying converted real property.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. April 12, 2026Governor's recommendation received by Senate
2. March 20, 2026Fiscal Impact statement From TAX (3/20/2026 11:42 am)
3. March 14, 2026Governor's Action Deadline 11:59 p.m., April 13, 2026
4. March 14, 2026Enrolled Bill communicated to Governor on March 14, 2026
5. March 10, 2026Signed by President
6. March 10, 2026Signed by Speaker
7. March 10, 2026Bill text as passed Senate and House (SB181ER)
8. March 10, 2026Enrolled
9. March 4, 2026House substitute agreed to by Senate (21-Y 19-N 0-A)
10. March 2, 2026Passed House with substitute (70-Y 29-N 0-A)
11. March 2, 2026Engrossed by House - committee substitute
12. March 2, 2026committee substitute agreed to

Showing 12 most recent of 33 actions. Full history