SECTION 1. Subparagraph (1) of paragraph (b) of part B of section 3 of chapter 62 of the General Laws, as appearing in the 2016 Official Edition, is hereby amended by striking out clause (A) and inserting in place thereof the following clause:-

(A) a personal exemption of $6,600 for tax years beginning on or after January 1, 2021,

For taxable years beginning on or after January 1, 2022, the personal exemption shall be: (i) the exemption in the previous year plus $275 if the inflation-adjusted growth in baseline taxes in the fiscal year ending the June 30 of the previous year exceeds 2.5 per cent and the inflation-adjusted change in baseline taxes for each consecutive 3 month period reported by the commissioner between August and December of the previous year is greater than 0; or (ii) the personal exemption in effect for the prior year. On or before October 15 of each year, the commissioner shall submit a report to the secretary of administration, the house and senate committees on ways and means and the joint committee on revenue providing a preliminary statement of the personal exemption for taxable years beginning on or after the following January 1. On or before December 15, the commissioner shall make a final statement of the personal exemption for the following year to the same recipients.

SECTION 2. Subparagraph (1A) of said paragraph (b) of said part B of said section 3 of said chapter 62, as so appearing, is hereby amended by striking out clause (A) and inserting in place thereof the following clause:-

(A) a personal exemption of $10,200 for tax years beginning on or after January 1, 2021,

For taxable years beginning on or after January 1, 2022, the personal exemption shall be: (i) the exemption in the previous year plus $425 if the inflation-adjusted growth in baseline taxes in the fiscal year ending the June 30 of the previous year exceeds 2.5 per cent and the inflation-adjusted change in baseline taxes for each consecutive 3 month period reported by the commissioner between August and December of the previous year is greater than 0; or (ii) the personal exemption in effect for the prior year. On or before October 15 of each year, the commissioner shall submit a report to the secretary of administration, the house and senate committees on ways and means and the joint committee on revenue providing a preliminary statement of the personal exemption for taxable years beginning on or after the following January 1. On or before December 15, the commissioner shall make a final statement of the personal exemption for the following year to the same recipients.

SECTION 3. Subparagraph (2) of said paragraph (b) of said part B of said section 3 of said chapter 62, as so appearing, is hereby amended by striking out clause (A) and inserting in place thereof the following clause:-

(A) a personal exemption of $13,200 for tax years beginning on or after January 1, 2021,

For taxable years beginning on or after January 1, 2022, the personal exemption shall be: (i) the exemption in the previous year plus $550 if the inflation-adjusted growth in baseline taxes in the fiscal year ending the June 30 of the previous year exceeds 2.5 per cent and the inflation-adjusted change in baseline taxes for each consecutive 3 month period reported by the commissioner between August and December of the previous year is greater than 0; or (ii) the personal exemption in effect for the prior year. On or before October 15 of each year, the commissioner shall submit a report to the secretary of administration, the house and senate committees on ways and means and the joint committee on revenue providing a preliminary statement of the personal exemption for taxable years beginning on or after the following January 1. On or before December 15, the commissioner shall make a final statement of the personal exemption for the following year to the same recipients.

SECTION 4. Section 4 of said chapter 62, as so appearing, is hereby amended by striking out paragraph (2) of subsection (a) and inserting in place thereof the following paragraph:-

(2) Part A taxable income consisting of interest and dividends shall be taxed at the same rate as provided for in subsection (b) of this section.

SECTION 5. Said section 4 of said chapter 62, as so appearing, is hereby amended by striking out subsection (b) and inserting in place thereof the following subsection:-

(b) Part B taxable income shall be taxed at the rate of 6 per cent for tax years beginning on or after January 1, 2021.

SECTION 6. Section 2 of chapter 64H of the General Laws, as so appearing, is hereby amended by striking out, in line 3, the figure “6.25” and inserting in place thereof the following figure:- 5.

SECTION 7. Section 2 of chapter 64I of the General Laws, as so appearing, is hereby amended by striking out, in line 7, the figure “6.25” and inserting in place thereof the following figure:- 5.

SECTION 8. Section 183 of chapter 184 of the acts of 2002, as amended by section 44 of chapter 300 of the acts of 2002, is hereby repealed.

SECTION 9. The secretary of administration and finance shall annually issue a report recommending the elimination of at least $50 million worth of tax expenditures. The report shall be submitted by October 15 of each year to the chairs of the house and senate committees on ways and means, the chairs of the joint committee on revenue and the chairs of the joint committee on housing and economic development.