#2024-1, January 5, 2024

“Millionaire’s Tax” Expected to Generate $1.5 Billion This Year

The Commonwealth expects to collect roughly $1.5 billion this year from the 4% surtax on income over $1 million, which will be largely allocated to education initiatives and transportation projects. The 4% surtax, commonly referred to as the “Millionaire’s Tax” was passed as a ballot initiative by voters in November 2022, which amended the Massachusetts Constitution to include the tax change.

Massachusetts Among Top States in Outbound Migration in 2023

United Van Lines, the moving company that has conducted its Annual National Movers Study for 47 years, recently unveiled its findings showing that Massachusetts experienced the “seventh highest level of outbound movement for its residents” in 2023 and is the only New England state that saw more folks moving out of than into. The survey indicated that for Massachusetts, “the percentage of outbound movement was 56.6%, whereas the percentage for inbound movement was 43.4%.” The top reasons for moving out of Massachusetts were for employment and family matters.

To read more about the survey, click here. 

Massachusetts Department of Revenue (DOR): December 2023 Revenue Collections Total $3.776 Billion

The MA DOR reported December 2023 revenue collections totaled $3.776 billion -- $82 million (2.1%) less than collections in December 2022 – and $138 million (3.5%) below benchmark.

Fiscal Year 2024 (FY24) year-to-date collections totaled approximately $17.869 billion -- $60 million (0.3%) more than the same period last year of Fiscal Year 2023 (FY23), but $769 million (4.1%) less than the year-to-date benchmark.

This is the last monthly collections report before Governor Maura Healey must submit her Fiscal Year 2025 budget to the Legislature.

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

CommonWealth Beacon’s Bruce Mohl has more on the December 2023 revenue collections here.

Massachusetts Bankers Association Testifies on Proposed “Junk Fees” Regulations

As you know, Attorney General Andrea Campbell’s office recently released a new set of regulations aimed at prohibiting so-called “junk fees” as reported in the Boston Globe article -- 'Junk fees' are focus of new regulations from AG Campbell (bostonglobe.com). The Association submitted written testimony ahead of a public hearing this past Wednesday outlining our concerns with the proposed regulations and requested an exemption for the banking industry. To read our testimony, click here.

While on their face the newly proposed regulations appear mostly aimed at “junk fees” added in the sale of products, there are some advertising, solicitation and other provisions looped into the proposed regulation that merits industry review. Thomas P. Quinn, Jr., Partner at Hudson Cook, LLP, provided an analysis of the draft regulation, which can be found here.

We will keep you posted on any updates going forward.