Gov. Charlie Baker gives a thumbs-up sign as he deliveres his second inaugural speech Jan. 3, 2019 in the House Chamber. (State House News Service Photo / Sam Doran)

Gov. Charlie Baker plans to proposed an estimated $137 million annual increase in the excise tax paid on real estate transfers, a proposal he said Friday will generate $1 billion over the next decade to protect properties and help cities and towns cope with climate change impacts.

Baker said the fiscal year 2020 budget he will file next week will include a proposal to dedicate $75 million next year towards “climate-smart infrastructure” and “other initiatives to help build resilient communities.”

“It’s pretty clear that climate change is starting to have a very significant impact on our communities, on our infrastructure, on personal property, on real property and on community property, and this is a way for us to build a program that can generate about $1 billion over 10 years to invest in communities, to invest in resiliency, to invest in infrastructure, to protect people’s property and to protect community property,” Baker said Friday after announcing the proposal at the annual meeting of the Massachusetts Municipal Association at the Hynes Convention Center.

Though the fiscal 2020 investment would total $75 million, Baker said the investment will ultimately grow to $137 million on an ongoing, annualized basis for the Global Warming Solutions Trust Fund. The money behind the investment will come from a hike in the state’s deeds excise rate.

Under Baker’s plan, the excise rate will increase from $2 per $500 of assessed value to $3 per $500 of value. The governor said the increase represents “a 0.2 percent increase.” Upon the transfer of property, the seller is required to pay the excise tax.

“This is an excise tax that’s basically about property and the proposal we’re making here is to protect property,” he said. “We think, in the long run, the cost/benefit on this one is a good deal for Massachusetts residents.”

The real estate lobby has previously argued against increases to the real estate transfer tax, saying a hike in the transfer tax will only add to closing costs and make housing even more expensive in Massachusetts.

The administration said the new program will provide loans and grants for municipalities to make investments identified by the Municipal Vulnerability Preparedness program, including stormwater upgrades, dams and flood controls, drainage and culvert improvements, drought mitigation strategies, assistance in prioritizing, planning, and retrofitting vulnerable assets, and developing climate-smart land use frameworks.

Baker’s fiscal 2020 budget proposal is due by Wednesday.