Amendment ID: S2378-25

Amendment 25

Helping families

Messrs. Tarr, Tran and O'Connor move to amend the bill by inserting after section_ the following new sections:-

"SECTION_.Paragraph (b) of Part B of section 3 of said chapter 62 of the General Laws, as so appearing, is hereby amended by striking out subparagraph (3) and inserting in place thereof the following subparagraph:-

(3) For tax years beginning on or before December 31, 2019, an exemption of $1,000 for each individual who qualifies for exemption as a dependent under section 151 (c) of the Code.  For tax years beginning on or after January 1, 2020, an exemption of $2,000 for each individual who qualifies for exemption as a dependent under section 151 (c) of the Code.

SECTION_.Chapter 41 of the acts of 2019 is hereby amended by striking out section 81 and inserting in place thereof the following section:-

SECTION 81. (a) Notwithstanding any general or special law to the contrary, prior to transferring the consolidated net surplus in the budgetary funds to the Commonwealth Stabilization Fund pursuant to section 5C of chapter 29 of the General Laws, the comptroller shall dispose of the consolidated net surplus in the budgetary funds for fiscal year 2019 as follows, and in the following order of precedence: (i) transfer funds as necessary to bring the balance of the Commonwealth Stabilization Fund, established in section 2H of chapter 29 of the General Laws, at the close of fiscal year 2019 to $3,000,000,000; (ii) transfer $10,000,000, to the Massachusetts Life Sciences Investment Fund, established in section 6 of chapter 23I of the General Laws; (iii) transfer $20,000,000, to the Massachusetts Community Preservation Trust Fund, established in section 9 of chapter 44B of the General Laws; (iv) transfer the remaining surplus, but not more than $175,000,000, to the Tax Reduction Fund, established in section 2I of chapter 29 of the General Laws.

(b) In fiscal years 2020 and 2021, at the direction of the secretary of administration and finance, the comptroller shall transfer funds from the Tax Reduction Fund to the General Fund to offset reduced tax collections caused by the increase in the dependent exemption to $2,000 pursuant to subparagraph (3) of paragraph (b) of Part B of section 3 of chapter 62 of the General Laws, as estimated by the commissioner of revenue.  In calculating any permitted uses of money in the Tax Reduction Fund pursuant to section 2I of chapter 29 of the General Laws, the commissioner of revenue shall first account for transfers necessary under this section."