For purchases located on Massachusetts islands—including Nantucket, Cape Cod, and Martha's Vineyard—there is land bank tax imposed on the transaction. The land banks fund the purchase of open space land through the collection of a surcharge on local real estate property taxes (Cape Cod) or through real estate transfer fees (Nantucket and Martha's Vineyard).
On Nantucket and Martha's Vineyard, the purchaser is responsible for payment of the fee in the amount of two percent of the purchase price. On Cape Cod, there is a 3% surcharge on the real estate property tax in each of the Cape's 15 towns.
When using LodeStar for a purchase in the Massachusetts islands, the Land Bank tax will appear in Section E of the Closing Cost Details. Click on Section E to view a more detailed breakdown of included fees, shown below:
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