By Bob Katzen
The House 25-132, rejected an amendment that would remove a section in the budget that exempts tax revenue generated from the recently voter-approved Millionaire Tax from counting toward the allowable state tax revenue limitations, under Chapter 62F, which provides that whenever revenue collections in a fiscal year exceed an annual cap tied to wage and salary growth, the excess is returned to taxpayers. Last year, $3 billion in refunds were returned to taxpayers when the law was triggered for just the second time since its passage in 1986. The revenue from the Millionaire Tax is deposited into the new Education and Transportation Stabilization Fund.
“There is no justification for excluding the Millionaire Tax revenues from the Chapter 62F calculations, as all other taxes including taxes constitutionally designated towards specific uses like the gas tax, are included in the current calculation, and tax rate increases have not been held aside from the formula previously,” said amendment sponsor GOP House Minority Leader Rep. Brad Jones (R-North Reading). “Attempting to exclude these revenues is a slap in the face to the state’s taxpayers and the voters who supported this ballot question.”
Amendment opponents said the amendment will put the new revenue in jeopardy and argued this new revenue is earmarked for education and transportation and must be protected and treated differently than other tax revenue.
Revenue Committee House chair Mark Cusack (D-Braintree) did not respond to repeated requests by Beacon Hill Roll Call to comment on why he urged representatives to vote against the amendment.
(A “Yes” vote is for the amendment that favors tax revenue generated from the recently voter-approved Millionaire Tax counting toward the allowable state tax revenue limitations. A “No” vote is against the amendment and supports exempting the revenue from the allowable state tax revenue limitations.)
Rep. Christine Barber No Rep. Mike Connolly No Rep. Erika Uyterhoeven No