In 2006 the Massachusetts Department of Revenue commented on gifts received from developers in a publication called “City and Town”. “Mitigation payments, infrastructure charges or other extractions made by a private in connection with a regulatory activity” are not considered “gifts” by the DOR and the funds must be deposited into the municipality’s general fund and can only be spend when authorized by appropriation in accordance with MGL Chapter 4, Section 53. In a Town, mitigation payments can only be spent for a specific purpose if authorized by Town Meeting. There is further comment in the following 2010 memo from DOR http://www.mass.gov/Ador/docs/dls/publ/bull/2010/2010_02B.pdf
- Paul F. Alphen, ESQ.
BALAS, ALPHEN & SANTOS, P.C.