An Act relative to a regional school assessment reserve fund

This bill allows Massachusetts cities and towns to create a special savings account called a Regional School Assessment Reserve Fund. Municipalities can vote to set up this fund to save money for years when the regional school tax increases by more than 3.5%. The law limits how much money can be saved to 10% of the annual tax and requires a majority vote to use the savings to cap future tax hikes at a 2.5% increase. Local treasurers are permitted to invest the saved funds to earn interest, which is added back to the reserve.