The Quincy City Council approved an ordinance to establish an affordable housing sales tax fund during their July 21 meeting.
The city has the potential to collect $80,122 per year, or $1,602,448 over the maximum 20-year term of the fund.
The fund is allowed due to a Substitute House Bill passed in the state legislature in 2019 that authorizes city governing bodies to impose local and use tax for the “acquisition, construction or rehabilitation of affordable housing or facilities providing supportive housing.” The fund also covers operations and maintenance costs of affordable housing, and if eligible, rental assistance to tenants, according to the city council documents.
The use and sales tax collected is not a new tax, according to council documents, but will be credited against state sales and use taxes collected within Quincy. The ordinance will not result in higher sales taxes within the city. The city council approved a resolution in November 2019 declaring its intent to adopt legislation to collect the tax and create the fund.
The fund must be used on projects that serve persons whose income is at or below 60% of the city’s median income, according to council documents.