This bill would limit Massachusetts' annual state tax collections by capping growth at a set rate calculated using a "growth factor" applied to prior year revenues. If actual tax collections exceed this calculated cap, the surplus would be returned directly to taxpayers. It defines "state tax revenues" broadly to include income, sales, and business taxes (but excludes federal funds, bond proceeds, and tuition fees). These rules would apply to fiscal years beginning after June 30, 2027. The bill amends existing tax law to implement this cap-and-return mechanism.
This bill (H 4975) updates Massachusetts tax law to align with federal tax changes while protecting state revenue. Key provisions include increasing the personal exemption from $1,200 to $2,000 (adjusted for inflation), adding a federal deduction for certain taxpayers, and creating a new 4% excise tax on pass-through entities (like S-corps and partnerships) for income exceeding a surtax threshold (Chapter 63E). It also establishes a rule (Section 5) preventing Massachusetts from applying federal tax changes that would impact state revenue by less than $20 million, unless the tax commissioner approves. The bill directly affects individual taxpayers, businesses structured as pass-through entities, and state tax administration.
By Mr. Montigny, a petition (accompanied by bill, Senate, No. 2041) of Mark C. Montigny for legislation to close a corporate tax haven loophole. Revenue.
HD 4313 reduces the filing fees for limited liability companies (LLCs) in the state by lowering two key costs. It cuts the fee for the initial certificate of organization from $500 to $150 and the annual report fee from $500 to $150. This directly affects all LLCs required to file these documents under current law. The bill makes no other changes to LLC requirements or fees.
By Representative Frost of Auburn, a petition (subject to Joint Rule 12) of Paul K. Frost relative to refundable credits for eligible pass-through entities. Revenue.
By Mr. Gomez, a petition (accompanied by bill, Senate, No. 2015) of Adam Gomez, Michael J. Barrett and Manny Cruz for legislation to establish a tiered corporate minimum tax. Revenue.
By Mr. Lewis, a petition (accompanied by bill, Senate, No. 2033) of Jason M. Lewis, Liz Miranda, Paul W. Mark, Carmine Lawrence Gentile and other members of the General Court for legislation to close corporate tax loopholes and create progressive revenue. Revenue.
By Mr. Moore, a petition (accompanied by bill, Senate, No. 2043) of Michael O. Moore for legislation relative to the taxation of small business in the commonwealth. Revenue.
This bill creates a property tax exemption for small commercial businesses in towns that assess all property at full value. It allows up to a 10% exemption on the average assessed value of qualifying commercial properties (Class 3), but only for properties owned by businesses with 50 or fewer employees and valued below $1 million. The exemption requires local assessors to use an annual list from the Division of Employment and Training (provided by July 1st each year) to verify business size, with the list kept confidential and used solely for tax eligibility. The relief applies in addition to existing exemptions and is funded by the combined value of all Class 3 commercial properties in the town.
Senate Bill S 2086 proposes to reduce the state sales tax rate. Specifically, this legislation aims to lower the sales tax to 5%. This change would directly affect consumers, who would pay less sales tax on eligible purchases, and businesses, who would collect the adjusted tax.
