Bill > H2560

This bill proposes to gradually eliminate the inventory tax for certain corporations by progressively reducing the tax rate over several years. Specifically, it amends Chapter 63, Section 39(a)(1) of the general laws, which likely pertains to corporate excise taxes, by lowering the tax rate from $2.60 per $1,000 of value to $2.00 effective January 1, 2016, then to $1.50 effective January 1, 2017, $1.00 effective January 1, 2018, and finally to $0.50 effective January 1, 2019. Furthermore, it replaces clauses (1) and (2) of this section with a new provision that outlines a declining percentage of net income subject to tax, starting from 9.5% for tax years before January 1, 2010, and decreasing to 8.0% for tax years beginning on or after January 1, 2012, with this change becoming effective January 1, 2020. The overall intent is to phase out the inventory tax, which is a tax on the value of goods a business has on hand, over a period of time.