Amendment ID: H3662-4

Amendment 4

Dividends and Interest

Mr. Eldridge moves to amend the bill by inserting at the end thereof the following sections:-

SECTION___. Section 3 of chapter 62 of the General Laws is hereby amended by adding the following subsection:—

In determining the Part A taxable income consisting of interest and dividends of persons who are 65 or older, or who are disabled, an exemption shall be allowed upon the sum of the Part A adjusted gross income of such persons in an amount equal to the lesser of $2,500 and one third of the sum of such Part A 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 $5,000 and one third of the sum of the Part A income for a married couple filing a joint tax 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___. Section 4 of said chapter 62 is hereby amended by striking out subsection (a)(2) and inserting in place thereof the following:—

Part A taxable income consisting of interest and dividends shall be taxed at the rate of 6.75 per cent for tax years beginning on or after January 1, 2014.