Bill > H2424

This bill aims to strengthen the foundation of the Commonwealth by making several changes to the state's tax code. The key provisions include: 1. Providing an exemption on the taxable income of persons aged 65 or older, or those with disabilities, up to $2,500 for single filers and $5,000 for joint filers, if their total federal adjusted gross income is less than $40,000 or $80,000, respectively. 2. Increasing the tax rate on Part A taxable income (interest and dividends) from 5.05% to 8.95%. 3. Maintaining the 8.95% tax rate on Part C taxable income (other income), except for income derived from the sale of investments in certain qualifying small businesses, which would be taxed at a reduced rate of 3%. 4. Adjusting the minimum corporate franchise tax based on the corporation's total sales in the Commonwealth, ranging from $456 for those with less than $500,000 in sales to $200,000 for those with $1 billion or more in sales. 5. Modifying the tax basis of property acquired from a decedent after December 31, 2019, by eliminating the application of the federal tax code's "stepped-up basis" provisions. The bill aims to provide targeted tax relief for certain individuals while also adjusting corporate tax rates and minimum taxes to strengthen the state's overall tax foundation.

Budget and Finance

https://malegislature.gov/Bills/191/H2424