Whereas , The deferred operation of this act would tend to defeat its purpose, which is forthwith to regulate certain property tax payments in the current fiscal year, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Notwithstanding section 57C of chapter 59 of the General Laws, the commissioner of revenue shall allow cities and towns to issue a third-quarter preliminary tax bill in fiscal year 2004. This third-quarter preliminary tax payment may not exceed 125 per cent of the first-quarter preliminary tax payment.

SECTION 2. There shall be a special commission to draft legislation to mitigate the dramatic increase in residential property tax bills caused by the recent rapid increase in residential assessed values and corresponding decline in commercial and industrial assessed values. The commission shall consist of 5 members, 2 of whom shall be the house and senate chairs of the joint committee on taxation, who shall serve as co-chairs; 1 of whom shall be the commissioner of revenue; 1 of whom shall be the president of the Greater Boston Chamber of Commerce; and 1 of whom shall be the mayor of the city of Medford.

The commission shall develop legislation that allows cities and towns to impose a levy on the commercial, industrial and personal property which may temporarily exceed 175 per cent, but never exceed 200 per cent, of the full and fair cash valuation of the taxable property in these classes divided by the full and fair cash valuation of all taxable real and personal property in the city or town, for the purpose of providing that the residential property class does not bear a lower percentage of the total property tax levy than the percentage that was imposed upon that class in fiscal year 2003; but, no city or town may increase its threshold by more than 25 percentage points. Any increase in the 175 per cent threshold shall be restored to the 175 per cent threshhold over the subsequent 4 fiscal years, or sooner if increasing commercial, industrial and personal property values restores the residential share of the total tax levy to its fiscal year 2003 level. The commission shall consider mechanisms to mitigate the potential negative impact of such a measure on business establishments, including, but not limited to, amendments to the existing small business exemption, and shall consider the consequences of taxing agricultural land at the open space tax rate.

The commission shall hold any hearings or meetings that it considers necessary and shall file the legislation with the clerks of the house of representatives and the senate not later than January 12, 2004.