Bill > S2015

This bill establishes a tiered corporate minimum tax in Massachusetts that increases progressively based on a corporation's total annual sales within the state. The new tax structure creates nine different tax brackets ranging from $456 for corporations with sales under $1 million to $150,000 for corporations with sales of $1 billion or more. The minimum tax is determined by calculating the corporation's total sales in the commonwealth, using a method specified in another section of law (subsection (f) of section 38). This approach means that larger corporations with higher sales volumes will pay significantly higher minimum taxes, creating a graduated tax system that places a greater financial burden on businesses with larger economic footprints in Massachusetts. The new tax structure will take effect for tax years beginning on or after January 1, 2026, giving businesses time to prepare for the changes. By implementing this tiered system, the state aims to potentially generate more revenue from corporations while creating a tax structure that scales with a company's economic activity in Massachusetts.