H5537 • 2025

An Act authorizing an increase in the limit of a local excise tax that the city of Salem may impose for the purpose of funding school and municipal facilities

Education Taxes

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The official status still shows this bill as active or still awaiting another formal step.

Sponsor: Manny Cruz
Last action: 2026-07-10
Official status: Referred to Joint Committee on Revenue
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

An Act authorizing an increase in the limit of a local excise tax that the city of Salem may impose for the purpose of funding school and municipal facilities

An Act authorizing an increase in the limit of a local excise tax that the city of Salem may impose for the purpose of funding school and municipal facilities By Representative Cruz of Salem, a petition (accompanied by bill, House, No.

What This Bill Does

An Act authorizing an increase in the limit of a local excise tax that the city of Salem may impose for the purpose of funding school and municipal facilities By Representative Cruz of Salem, a petition (accompanied by bill, House, No.
5537) of Manny Cruz (with the approval of the mayor and city council) that the city of Salem be authorized to increase the limit of a local excise tax for the purpose of funding school and municipal facilities.
Revenue.
[Local Approval Received.] Status: Referred to Joint Committee on Revenue

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2026-07-10 Joint
Hearing scheduled for 07/20/2026 from 09:00 AM-05:00 PM in Written Testimony Only
2026-07-01 Senate
Senate concurred
2026-06-25 House
Referred to the committee on Revenue

Official Summary Text

An Act authorizing an increase in the limit of a local excise tax that the city of Salem may impose for the purpose of funding school and municipal facilities
By Representative Cruz of Salem, a petition (accompanied by bill, House, No. 5537) of Manny Cruz (with the approval of the mayor and city council) that the city of Salem be authorized to increase the limit of a local excise tax for the purpose of funding school and municipal facilities. Revenue. [Local Approval Received.]
Status:
Referred to Joint Committee on Revenue

Current Bill Text

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Bill H.5537

SECTION 1. Notwithstanding the six per cent limit on the amount of local excise tax that a municipality other than the City of Boston may impose on the transfer of occupancy of any room in a bed and breakfast establishment, hotel, lodging house, or motel contained in chapter 64G, section 3A of the General Laws, or any other general or special law to the contrary, the City of Salem is hereby authorized to impose a local excise tax upon such transactions at a rate not to exceed 8.75 per cent.

SECTION 2. The additional revenue attributable to the 2.75 percentage point increase authorized by section 1, representing the difference between a local excise tax imposed at the rate of 6 per cent and a local excise tax imposed at a rate up to 8.75 per cent, shall be deposited into a separate special revenue fund to be established by the City of Salem.

Amounts deposited into said fund shall be used solely for the planning, design, acquisition, construction, reconstruction, renovation, repair, improvement, furnishing, equipping, maintenance, and extraordinary maintenance of school or municipal buildings and facilities of the City of Salem, including, but not limited to, the payment of debt service on bonds or notes issued for such purposes.

Nothing in this act shall be construed to limit, impair, or otherwise affect the eligibility or authority of the City of Salem to apply for, receive, or expend grants, reimbursements, or other financial assistance from the Massachusetts School Building Authority or any other federal, state, or local source for the purposes described in this section.

Any balance remaining in the fund at the end of a fiscal year shall not revert to the general fund and shall remain available for expenditure for the purposes set forth in this section.

SECTION 3. This act shall take effect upon its passage

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