Budget Amendment ID: FY2027-S4-844

OTH 844

Special commission to study options to provide meaningful and sustainable tax relief to taxpayers in the commonwealth

Mr. Tarr moved that the proposed new text be amended by inserting after section _ the following new section:-

"SECTION _.  (a) There shall be a special commission to study options to provide meaningful and sustainable tax relief to taxpayers in the commonwealth. The commission shall examine the structure, equity and economic impact of the commonwealth’s tax system and shall make recommendations to reduce the tax burden on residents while maintaining fiscal stability and competitiveness.

(b) The commission shall consist of: the house and senate chairs of the joint committee on revenue, who shall serve as co-chairs; the ranking minority members of the joint committee on revenue; 1 representative of the Massachusetts Taxpayers Foundation; 1 representative of a statewide business organization appointed by the governor; 1 representative of the Massachusetts Budget and Policy Center; 1 representative of a statewide labor organization appointed by the governor; and 1 economist from the University of Massachusetts Amherst Donahue Institute appointed by the governor.

(c) The commission shall examine the following areas, including but not limited to:

(i) options for providing income tax relief, including adjustments to rates, brackets, credits and deductions;

(ii) options for providing property tax relief, including circuit breakers, exemptions, abatements and reforms to local tax structures;

(iii) the impact of tax policy on affordability for low- and middle-income households;

(iv) the competitiveness of the commonwealth’s tax structure relative to other states;

(v) the fiscal impact of potential tax-relief measures on state and municipal revenues;

(vi) opportunities to simplify the tax code to reduce administrative burdens on taxpayers and businesses;

(vii) the interaction between state tax policy and federal tax law;

(viii) any other tax-relief strategies the commission deems appropriate to improve affordability, economic mobility and long-term fiscal health; and

(ix) a comparison of the commonwealth’s tax structure, tax-relief programs and overall tax burden with those of peer states, including but not limited to states with similar economic profiles, cost-of-living levels and revenue structures.

(d) The commission shall hold at least 3 public hearings in geographically diverse locations, may consult with taxpayers, municipal officials, economists, business leaders, labor organizations and community groups, and shall use existing data collections to the maximum extent practicable.

(e) Not later than March 1, 2027, the commission shall file a report of its findings and recommendations, including any proposed legislation, with the clerks of the senate and house of representatives, the joint committee on revenue and the house and senate committees on ways and means. The report shall be made publicly available on the department of revenue’s website."