Session Laws

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. To provide for supplementing the general appropriation act and for a certain new activity and project, the sum set forth in section two is hereby appropriated from the General Fund, for the several purposes and subject to the conditions specified therein, subject to the provisions of law regulating the disbursement of public funds and the conditions pertaining to appropriations in chapter one hundred and thirty-three of the acts of nineteen hundred and ninety-two, for the fiscal year ending June thirtieth, nineteen hundred and ninety-three or for such period as may be specified, the sum so appropriated to be in addition, unless otherwise specified, to any amounts available for the purpose.

SECTION 2. `tm;keep=no `tcol=6,B4;c1=1,9,tu,T;c2=1,78,tuc;c3=1,78,tuc;c4=12,53,tfh1;c5=16,49,tu;c6=66,13,tur `tc1 9630-0100 `tc4 For the expenses of the special commission established in section three to make an investigation and study relative to the business tax policy of the commonwealth `tc6 $200,000 `tcol;end

SECTION 3. There is hereby established pursuant to section two A of chapter four of the General Laws, a special commission consisting of the president of the senate, the speaker of the house of representatives, the representative in congress from the eighth congressional district of Massachusetts and nine persons to be appointed by the governor, one of whom shall be the president of the Federal Reserve Bank of Boston, who shall serve as chairman, one of whom shall be the president of the Massachusetts AFL-CIO, one of whom shall be a person to be recommended by the Massachusetts High Technology Council, one of whom shall be a person to be recommended by the Massachusetts Taxpayers Foundation, one of whom shall be a person to be recommended by the Massachusetts Bankers' Association, three of whom shall be persons to be recommended by the Tax Equity Alliance for Massachusetts, for the purpose of making an investigation and study relative to the business tax policy of the commonwealth, including, but not limited to, business tax disclosure concerns raised by Question 2 which will be submitted to the people at the nineteen hundred and ninety-two state election.

Such investigation and study shall include: (1) an evaluation of the equity, neutrality and simplicity of the commonwealth's taxes on business, including, but not limited to: (a) an analysis of the corporation excise tax, the insurance excise tax and the bank excise tax; (b) an examination of excise tax return data over a period of several years to determine variation in tax payments and burdens across industries and size categories; (c) the number and characteristics of businesses that have incurred little or no excise tax liability; and (d) an analysis of the statutory basis why such businesses have incurred little or no excise tax liability; and (2) an evaluation of the commonwealth's business tax climate, including, but not limited to, a comparison of the tax payments and burdens on business in the commonwealth with the tax payments and burdens on businesses in competitor states. Said comparison shall take into account all taxes for which businesses are liable, including, but not limited to, state excise taxes on businesses, sales taxes on business purchases, and local property taxes on businesses. Said commission, in the course of its investigation and study, shall consider business tax disclosure in the context of the goals of equity, neutrality, simplicity, tax competitiveness, confidentiality, and the public's right to know, and such other matters as the commission deems necessary to accomplish its purposes.

Notwithstanding the provisions of section twenty-one of chapter sixty-two C of the General Laws or any other general or special law to the contrary, said commission shall have access to department of revenue tax return data that it deems necessary to conduct its duties; provided, however, that such data shall be provided by the commissioner of the department of revenue in such a manner that identification of individual taxpayers associated with such data shall not be disclosed. No member of the commission or its staff shall employ any such data for any purpose other than carrying out the duties set forth in this section. Nothing contained in this act shall require said commissioner to provide information obtained by the department of revenue through its agreements with other states or the federal government.

No member of said commission shall receive any compensation for his services, nor shall any member of said commission be reimbursed for any travel expenses or actual expenses incurred in carrying out his duties as a member of said commission.

Said commission shall report to the general court the results of its investigation and study, including a minority report, if any, together with its recommendations and drafts of legislation necessary to carry said recommendations into effect, by filing the same with the clerk of the senate and the clerk of the house of representatives on or before June thirtieth, nineteen hundred and ninety-three, who shall forward the same to their respective committee on ways and means. Said commission shall file a supplemental report thereto, if necessary, together with any necessary recommendations and drafts of legislation, with the clerk of the senate and the clerk of the house of representatives on or before December thirty-first, nineteen hundred and ninety-three, who shall forward the same to their respective committee on ways and means.

SECTION 4. This act shall take effect upon its passage.