An Act relative to municipal income-based taxation

HD 3649 allows Massachusetts cities and towns to replace local property taxes with income-based taxes on residents and businesses, if approved by their local governing body. The bill establishes that municipalities would calculate resident tax rates by dividing their required tax levy for residents (RL) by total reported resident income (TRE), and business tax rates by dividing their required business levy (CIL) by total business income reported (CIE). Tax bills would then be determined by multiplying an individual's personal income or a business's reported income by these calculated rates. This change would directly affect residents and businesses in any municipality adopting the new system, replacing property tax obligations with income-based local taxes.