‘‘SEC. 5000E–3. MASS LANDLORD RENTAL TAX. 
‘‘(a) IN GENERAL.—In the case of a covered landlord, 
there is hereby imposed on the rental of a dwelling unit 
a tax equal to 1 percent of the amount of the rent paid 
for such dwelling unit. 
‘‘(b) COVERED LANDLORD.—For purposes of this 
section, the term ‘covered landlord’ means any person that 
owns— 
‘‘(1) more than 1,000 dwelling units held for 
rent within a single metropolitan statistical area, 
‘‘(2) more than 2,000 dwelling units held for 
rent, or 
‘‘(3) at least 500 dwelling units held for rent in 
at least 3 different States. 
‘‘(c) EXCEPTIONS.— 
‘‘(1) IN
GENERAL.—Subsection (a) shall not 
apply to any dwelling unit subject to a rent control, 
just cause, or source of income discrimination law. 
‘‘(2) RENT
CONTROL
LAW.—For purposes of 
this subsection— 
‘‘(A) IN GENERAL.—The term ‘rent control 
law’ means any State or local law which re-
stricts the amount by which a lessor may in-
crease rental payments for a dwelling unit and 
allows an affirmative defense to eviction or pri-
vate right of enforcement. 
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‘‘(B) MINIMUM AMOUNT LEVEL OF RENT 
CONTROL.—A law shall not be treated as a rent 
control law with respect to any dwelling unit for 
purposes of this paragraph unless the lessor of 
such dwelling unit may not, when the lease with 
respect to such unit expires, increase monthly 
rent by an amount greater than the percentage 
increase, if any, over the preceding 12 months 
in the Consumer Price Index for All Urban 
Consumers or 3 percent of the average monthly 
amount paid for the same unit for each month 
that the unit was occupied during the previous 
12-month period, whichever is greater. 
‘‘(3) JUST CAUSE LAW.—The term ‘just cause 
law’ means any State or local law which at least re-
stricts a lessor from evicting lessee by limiting evic-
tions to instances in which— 
‘‘(A) the tenant has— 
‘‘(i) failed to pay rent for 2 or more 
consecutive months despite clear and time-
ly notice, 
‘‘(ii) caused substantial destruction to 
the rental property, 
‘‘(iii) caused significant danger to 
other tenants, or 
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‘‘(iv) significantly and repeatedly vio-
lated an explicit lease term and failed to 
cure the violation after being given notice 
requesting that the lease term violation be 
cured, or 
‘‘(B) the landlord seeks to occupy the unit 
for use as a primary residence, or seeks the 
availability of the unit for occupancy by an im-
mediate relative as a primary residence. 
‘‘(4) SOURCE
OF
INCOME
DISCRIMINATION 
LAW.— 
‘‘(A) IN GENERAL.—The term ‘source of 
income discrimination law’ means a State or 
local law which places restrictions on a lessor 
from rejecting lessee applicants, or to evicting 
an existing lessee, due to the lessee’s source of 
income. 
‘‘(B) SOURCE OF INCOME.—For purposes 
of subparagraph (A), source of income includes 
the following: 
‘‘(i) A housing voucher under section 
8 of the United States Housing Act of 
1937 (42 U.S.C. 1437f) and any form of 
Federal, State, or local housing assistance 
provided to a family or provided to a hous-
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ing owner on behalf of a family, including 
rental vouchers, rental assistance, and 
rental subsidies from nongovernmental or-
ganizations. 
‘‘(ii) Any income received during a 
taxable year as Social Security benefits, as 
defined in section 86(d) of the Internal 
Revenue Code of 1986, or as supplemental 
security income benefits under title XVI of 
the Social Security Act (42 U.S.C. 1381 et 
seq.). 
‘‘(iii) Any income received by court 
order, including spousal support and child 
support. 
‘‘(iv) Any payment from a trust, 
guardian, or conservator. 
‘‘(v) Any other lawful source of in-
come. 
‘‘(d) AGGREGATION RULES.—All persons treated as 
a single employer under subsection (a) or (b) of section 
52, or subsection (m) or (o) of section 414, shall be treat-
ed as one person for purposes of applying subsection (b).’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to sales and exchanges after De-
cember 31, 2025. 
Æ 
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