HOUSE DOCKET, NO. 1472        FILED ON: 1/18/2023

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2961

The Commonwealth of Massachusetts

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PRESENTED BY:

Erika Uyterhoeven

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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 relative to income tax rates.

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PETITION OF:

HOUSE DOCKET, NO. 1472        FILED ON: 1/18/2023

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2961

[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE HOUSE, NO. 3082 OF 2021-2022.]

The Commonwealth of Massachusetts

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In the One Hundred and Ninety-Third General Court
(2023-2024)

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An Act relative to income tax rates.

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 4 of Chapter 62 of the General Laws is hereby amended by striking lines 10 and 11, inclusive, and inserting in place thereof the following:-

(b) Part B taxable income shall be taxed at the rate of 6.0 per cent for tax years beginning on or after January 1, 2023.

SECTION 2. 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, 2023,

For taxable years beginning on or after January 1, 2024, 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 3. 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, 2023,

For taxable years beginning on or after January 1, 2024, 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 4. 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, 2023,

For taxable years beginning on or after January 1, 2024, 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.