Bill > H3281

This bill modifies the taxation of inventory for manufacturing corporations in Massachusetts by gradually reducing the tax rate on tangible property (such as raw materials used in manufacturing) over several years. Specifically, the bill introduces a phased tax rate reduction for manufacturing corporations, starting at $2.00 per $1,000 of tangible property value in 2026 and decreasing annually until reaching $0.00 per $1,000 in 2030. The bill defines tangible property as the book value of raw materials held by manufacturing corporations and situated in Massachusetts that are not already subject to local taxation. For non-manufacturing corporations, the tax rate remains unchanged at $2.60 per $1,000. This gradual tax reduction is designed to provide financial relief to manufacturing businesses by eliminating taxes on their inventory over a five-year period, potentially making Massachusetts more attractive for manufacturing companies and supporting the state's manufacturing sector.

Budget and Finance

https://malegislature.gov/Bills/194/H3281