Mayor Michelle Wu has put forth a proposal to levy a transfer tax on authentic estate income in Boston over $2 million — a transfer that could deliver in just about $100 million annually to assistance fund cost-effective housing initiatives, her administration says.

Wu, on Monday, submitted a residence rule petition that, if accredited, would establish a cost of up to 2 p.c on particular authentic estate gross sales to be paid by sellers.

These a tax would have introduced in an approximated $99.7 million for the metropolis in 2021.

The petition also consists of expanded house tax cuts for lower-profits seniors by rewriting eligibility criteria in the city’s 41C application, which offers tax aid to residents around the age of 65 who live in properties that they individual. The alterations would allow for for a number of thousand additional homeowners to come to be eligible primarily based on their revenue.

“Housing is overall health, safety, and opportunity—and housing stability need to be the basis for our restoration from the pandemic,” Wu stated in a assertion. “As the charge of housing has grow to be a lot more and additional out of attain for family members, we have to just take urgent motion to retain households in their households and develop a metropolis for absolutely everyone.”

The transfer price proposal follows identical petitions submitted in 2019 and 2021. Home rule petitions have to be permitted by the Town Council and signed by the mayor and then despatched to the Legislature and governor for approval.

The law would make funding for the city’s Community Housing Rely on, which results in and preserves affordable housing. The proposal could also gasoline programs that bolster senior house owner and low-profits renter security and housing accessibility disparities, Wu’s employees said in a push launch.

The petition would “discourage fast repeat product sales of properties” and position exemptions on specific transactions, like transfers built concerning household associates, according to the Wu administration.

City officers could sooner or later offer other exemptions for “economically susceptible populations, cost-effective housing developments, deed-restricted housing, proprietor occupant house owners, beneficiaries of a city-approved homebuyer method, or other folks,” the administration mentioned.

Boston City Councilor and point out Sen. Lydia Edwards, who was an initial sponsor of the 2019 submitting, named the most recent edition of the proposal “a move in the proper course.”

“This aids the city of Boston come up with sustainable resources of funding for housing and also give our seniors and homeowners some tax aid,” Edwards said in a statement. “I search forward to doing the job with my colleagues on the Metropolis Council and at the State House to get this transfer rate handed.”

The dwelling rule petition also stands to give decide on seniors a break on their assets taxes, by way of the dollars gathered under the transfer tax.

In accordance to Wu’s workers, variations proposed to the 41C tax help software would “modernize the getting old requirements which has shrunk the pool of qualified candidates in new many years.”

Specially, the property rule petition would bump up the program’s foundation exemption from $1,000 to $1,500 and the whole probable exemption from $2,000 to $3,000.

Other improvements include broadening eligibility in the plan by swapping mounted earnings restrictions with 50 per cent of the place median profits, or AMI, and doubling the asset limit ranges, officers claimed.

“If handed, these improvements would consider effect for Fiscal Calendar year 2023, and the income boundaries for that year would maximize from the latest $24,911 to $47,000 for solitary folks, and from $37,367 to $53,700 for a pair,” Wu’s workplace said. “The asset restrictions would improve from $40,000 to $80,000 for single people today, and from $55,000 to $110,000 (the asset limits exclude the worth of the applicant’s dwelling).”

There are currently roughly 4,600 senior home owners who are revenue qualified for the 41C tax exemption, in accordance to town officers. Amendments beneath the dwelling rule petition would extend eligibility to about 8,700 senior house owners.

“This modest price on people who prosper from Boston’s success will provide considerably-needed relief to seniors who assisted build this city but now wrestle to continue being,” Edna Pruce, an 88-yr-aged Mattapan homeowner who serves as president of the Massachusetts Senior Motion Council, explained in a statement.