#2023-24, October 6, 2023

Governor Healey Signs $1 Billion Tax Relief Bill

Governor Maura Healey signed the $1 billion tax relief bill into law on Wednesday, which aims at offering relief to Bay Staters – including eliminating the estate tax for estates under $2 million as well as its so-called “cliff effect.”

As a reminder, the MA tax package includes:

1. Estate Tax Relief:
   A long-fought Association battle, the final package reforms the MA estate tax by eliminating the tax for estates under $2 million. As the Association has raised in our advocacy for estate tax reform over many years, Massachusetts is an outlier as one of only 12 states that impose an estate tax at all. As such, the state runs the risk that older residents leave the state, and professionals may not wish to move here if they see the tax climate as unfavorable for themselves and their families. While the relief is certainly welcome, we should note that other nearby states still impose their estate taxes at a much higher threshold – including Vermont at $5 million, Maine at $5.8 million, New York at $6.1 million, and Connecticut at the federal threshold ($12.3 M) beginning next year.

2. Single Sales Factor Apportionment:
   Presently, most businesses in Massachusetts are subject to a three-factor apportionment based on location, payroll, and receipts. The agreement establishes a single sales factor apportionment in Massachusetts based solely on receipts, matching what 39 other states currently do, according to House Leadership who proposed the provision and passed it in their original bill.

   • The final accord also contains additional language included in the “Investment & Trading” provision; than that which was originally passed in the House-backed bill.

3. Short Term Capital Gains Rate Relief:
   The agreement includes a reduced rate on short-term capital gains tax of 8.5%.

4. Housing Tax Relief for Renters:
   The new law would allow filers to deduct up to 50% of the cost of the rent for their primary residence, up to $4,000; and doubles the tax credit for seniors who rent or own in Massachusetts from $1,200 to $2,400.

For more information, click on the links below:

• Bill H. 4104: An Act to Improve the Commonwealth’s Competitiveness, Affordability, and Equity. The text of the estate tax amendments can be found at the bottom of page 24 of the PDF document.

• The Massachusetts Taxpayers Foundation has a summary of the legislation, which can be found here.  

• The Boston Globe’s Samantha Gross has more on tax package and its impact, which can be found here.

Massachusetts House of Representatives Pass Wage Transparency Bill

On Wednesday, the MA House of Representatives passed a salary range transparency bill by a 148 - 8 vote. The bill has been sent to the Senate where it will be deliberated.

The proposed legislation:

1. Mandates that covered employers and their agents disclose pay range for a particular position on posting or advertisement of that position and when asked by applicant or current employee,

2. Orders employers to disclose pay range for promotion or transfer when offering new position to employee,

3. Lists penalties for employers violating this section; and

4. Directs the Attorney General to enforce and make a public awareness campaign to inform employers of this new policy.

To read the bill’s text, click here.

GBH News’ Katie Lannan has more on the wage transparency bill, which can be found here.

If you have any comments or feedback on the bill, please feel free to share with us as soon as you can.

We will keep you posted on all developments.

Massachusetts Department of Revenue (DOR): September 2023 Revenue Collections Total $4.187 Billion

The MA DOR reported September 2023 revenue collections totaled $4.187 billion -- $12 million (0.3%) less than collections in September 2022 – and $150 million (3.5%) below benchmark.

Fiscal Year 2024 (FY24) year-to-date collections totaled approximately $9.284 billion -- $78 million (0.9%) more than the same period last year of Fiscal Year 2023 (FY23).

To read more about the September 2023 revenue collections, click here.

Election Day is Tuesday, November 7, 2023

With 5 weeks until Election Day, many municipalities are gearing up for a busy election season. You know better than most the vital role that municipal government plays in our daily lives and how important it is to vote in local elections.

For your convenience, find pertinent election information in the links below:

• Register to Vote
• Upcoming Elections – Primary and General Election Day Dates and Information
• Find Your Polling Place
• Vote-by-Mail Information
  • To track your mail-in ballot: Track Your Ballot

For more 2023 Election information and resources, click here.