Limits state tax collection growth and refunds surpluses to taxpayers.

This bill proposes to limit the growth of state tax collections in Massachusetts. It sets the limit for any fiscal year beginning after June 30, 2027, as the net state tax revenues from the previous fiscal year, increased by the average growth of wages and salaries in Massachusetts over the most recent three years. If the collected revenue exceeds this limit, the surplus will be refunded to taxpayers the following year. The bill includes all revenue from the surtax on incomes over $1 million when calculating the revenue limit and determining whether state revenue exceeds the limit.

Limits state tax collection growth and refunds surpluses to taxpayers.

This bill proposes to limit the growth of state tax collections in Massachusetts. It sets the limit for any fiscal year beginning after June 30, 2027, as the net state tax revenues from the previous fiscal year, increased by the average growth of wages and salaries in Massachusetts over the most recent three years. If the collected revenue exceeds this limit, the surplus will be refunded to taxpayers the following year. The bill includes all revenue from the surtax on incomes over $1 million when calculating the revenue limit and determining whether state revenue exceeds the limit.