SECTION 1.  The General Laws, as appearing in the 2010 Official Edition, are hereby amended by inserting after chapter 65C the following new chapter:-

Chapter 65D

Taxation of Campaign Accounts

Section 1. As used in this chapter, the following words shall, unless the context clearly requires otherwise, have the following meanings:

“Candidate”, shall have the same meaning as in section one of chapter 55.

“Candidate’s committee”, the political committee organized on behalf of a candidate.

“Commissioner”, the commissioner of revenue.

“Director”, the director of campaign and political finance.

“Final Report”, the year-end report following an election during which a candidate’s name appeared on the ballot.

“Year-end Report”, a report of the contributions received and expenditures made by a candidate or candidate’s committee filed with the director pursuant to section 18 of chapter 55 in January of the following year complete as to the thirty-first day of December of the prior year.

Section 2. An excise is hereby imposed upon a candidate committee’s account in an amount equal to 25 per cent of the unencumbered balance at the end of the reporting period, as determined by the final report.  A candidate shall pay the excise to the commissioner at the time provided for filing the return required by section 3.

Section 3. Every candidate or candidate’s committee subject to taxation under section 2 shall, on or before the first day of March in each year a final report is filed with the director, file a return with the commissioner identifying the unencumbered balance at the end of the reporting period and any such other information as the commissioner may deem necessary.

Section 4. Commissioner may promulgate rules and regulations for the administration and enforcement of this chapter.