Bill > H2851

This bill amends the General Laws of Massachusetts to further regulate tax revenue. The key provisions are: 1. After each quarter, the Department of Revenue shall certify the amount of tax revenues estimated to have been collected from capital gains income. If the amount exceeds $1.9 billion in a fiscal year, the excess will be transferred quarterly to the Commonwealth Stabilization Fund (90%), the State Retiree Benefits Trust Fund (5%), and the Commonwealth's Pension Liability Fund (5%). The $1.9 billion threshold will be adjusted annually to reflect the average annual growth in U.S. gross domestic product over the preceding 5 years. 2. Taxpayers with federal adjusted gross income below certain thresholds can claim personal exemptions on their Part A (interest and dividends) and Part C (other) income. 3. The tax rate on Part A taxable income (interest and dividends) is set at 9%. 4. The tax rate on Part C taxable income is set at 9%, with a 3% rate for certain investments in qualifying small businesses held for at least 3 years. 5. The provisions of this bill apply to all taxable years commencing on or after January 1, 2021.

Budget and Finance

https://malegislature.gov/Bills/192/H2851