SENATE DOCKET, NO. 1112        FILED ON: 1/17/2019

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 1608

The Commonwealth of Massachusetts

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PRESENTED BY:

Sonia Chang-Diaz

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act to invest in our communities.

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PETITION OF:

SENATE DOCKET, NO. 1112        FILED ON: 1/17/2019

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 1608

[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE SENATE, NO. 1496 OF 2017-2018.]

The Commonwealth of Massachusetts

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In the One Hundred and Ninety-First General Court
(2019-2020)

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An Act to invest in our communities.

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

A personal exemption of $7,900 for tax years beginning on or after January 1, 2020.

Section 3 of chapter 62 of the General Laws, as so appearing, is hereby further amended by striking out subsection B(b)(1A)(A) and inserting in place thereof the following:-

A personal exemption of $10,300 for tax years beginning on or after January 1, 2020.

Section 3 of chapter 62 of the General Laws, as so appearing, is hereby further amended by striking out subsection B(b)(2)(A) and inserting in place thereof the following:-

A personal exemption of $15,800 for tax years beginning on or after January 1, 2020.

Section 3 of chapter 62 of the General Laws, as so appearing, is hereby further amended by inserting at the end thereof the following:-

(D) In determining the Part A and Part C taxable income of persons who are 65 or older, or who are disabled, an exemption shall be allowed upon the sum of the Part A and Part C adjusted gross income of such persons in an amount equal to the lesser of $2500 and one third of the sum of such Part A and Part C income for a single person, or a married person filing a separate return, whose total federal adjusted gross income is less than $40,000, and in an amount equal to the lesser of $5000 and one third of the sum of the Part A and Part C income for a married couple filing a joint return whose total federal adjusted gross income is less than $80,000, provided, however, that if only one spouse is 65 or older or is disabled, the exemption shall not exceed $2,500.

SECTION 2. Section 4 of chapter 62 of the General Laws, as so appearing, is hereby amended by striking out subsection (a)(1) and inserting in place thereof the following:-

(a)(1) Part A taxable income consisting of capital gains shall be taxed at the rate of 8.95 per cent for tax years beginning on or after January 1, 2020.

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

(a)(2) Part A taxable income consisting of interest and dividends shall be taxed at the rate of 8.95 per cent for tax years beginning on or after January 1, 2020.

Section 4 of chapter 62 of the General Laws, as so appearing, is hereby further amended by striking out subsection (b) and inserting in place thereof the following:-

(b) Part B taxable income shall be taxed at the rate of 5.95 per cent for tax years beginning on or after January 1, 2020. 

Section 4 of chapter 62 of the General Laws, as so appearing, is hereby further amended by striking out subsection (c) and inserting in place thereof the following:-

(c) Part C taxable income shall be taxed at the rate of 8.95 per cent for tax years beginning on or after January 1, 2020, excepting Part C taxable income derived from the sale of investments which: (1) are in a corporation which is domiciled in the commonwealth with a date of incorporation on or after January 1, 2011 which has less than $50 million in assets at the time of investment and complies with subsections (e)(1), (e)(2), (e)(5), and (e)(6) of Section 1202 of the Internal Revenue Service Code; and (2) are held for 3 years or more, which shall be taxed at a rate of 3 per cent; provided, however, that in order to qualify for the 3 per cent rate, such investments shall be made within 5 years of the date of incorporation and, to the extent consistent with the provisions of this subsection, shall be in stock in a corporation that satisfies the requirements for treatment as “qualified small business stock” under section 1202 ( c) of the federal Internal Revenue Code, without regard to the requirement that the corporation be a C corporation.