Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H2745 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1 of 1
2	2	HOUSE DOCKET, NO. 2531 FILED ON: 1/19/2023
3	3	HOUSE . . . . . . . . . . . . . . . No. 2745
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Mike Connolly
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act increasing tax fairness.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Mike Connolly26th Middlesex1/19/2023 1 of 3
16	16	HOUSE DOCKET, NO. 2531 FILED ON: 1/19/2023
17	17	HOUSE . . . . . . . . . . . . . . . No. 2745
18	18	By Representative Connolly of Cambridge, a petition (accompanied by bill, House, No. 2745) of
19	19	Mike Connolly relative to taxable income. Revenue.
20	20	The Commonwealth of Massachusetts
21	21	_______________
22	22	In the One Hundred and Ninety-Third General Court
23	23	(2023-2024)
24	24	_______________
25	25	An Act increasing tax fairness.
26	26	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
27	27	of the same, as follows:
28	28	1 SECTION 1. Section 3 of chapter 62 of the General Laws, is hereby amended by adding
29	29	2the following subsection:-
30	30	3 D. A taxpayer may claim one of the following exemptions:
31	31	4 (a) In the case of a single person or a married person filing a separate return and whose
32	32	5federal adjusted gross income is less than $50,000, a personal exemption not to exceed $10,000
33	33	6of the taxpayer’s Part A income consisting of interest and dividends and Part C adjusted gross
34	34	7income.
35	35	8 (b) In the case of a married couple filing a joint return and whose federal adjusted gross
36	36	9income is less than $100,000, a personal exemption not to exceed $20,000 of the taxpayers’ Part
37	37	10A income consisting of interest and dividends and Part C adjusted gross income.
38	38	11 (c) In the case of a single person or a married person filing a separate return who is 65
39	39	12years of age or older or who is disabled and whose federal adjusted gross income is less than 2 of 3
40	40	13$40,000, a personal exemption not to exceed $30,000 of the taxpayer’s Part A income consisting
41	41	14of interest and dividends and Part C adjusted gross income.
42	42	15 (d) In the case of a married couple filing a joint return, at least 1 of whom is either 65
43	43	16years of age or older or is disabled and whose federal adjusted gross income is less than $80,000,
44	44	17a personal exemption not to exceed $60,000 of the taxpayers’ Part A income consisting of
45	45	18interest and dividends and Part C adjusted gross income.
46	46	19 SECTION 2. Section 4 of said chapter 62, as so appearing, is hereby amended by striking
47	47	20out paragraph (2) of subsection (a) and inserting in place the following paragraph:
48	48	21 (2) Part A taxable income consisting of interest and dividends shall be taxed at the rate of
49	49	225.95 per cent.
50	50	23 SECTION 3. Said section 4 of said chapter 62, as so appearing, is hereby further
51	51	24amended by striking out subsection (c) and inserting in place thereof the following subsection:
52	52	25 (c) Part C taxable income shall be taxed at the rate of 5.95 per cent, excepting Part C
53	53	26taxable income derived from the sale of investments which: (1) are in a corporation which is
54	54	27domiciled in the commonwealth with a date of incorporation on or after January 1, 2011 which
55	55	28has less than $50 million in assets at the time of investment and complies with subsections (e)(1),
56	56	29(e)(2), (e)(5), and (e)(6) of Section 1202 of the Internal Revenue Service Code; and (2) are held
57	57	30for 3 years or more, which shall be taxed at a rate of 3 per cent; provided, however, that in order
58	58	31to qualify for the 3 per cent rate, such investments shall be made within 5 years of the date of
59	59	32incorporation and, to the extent consistent with the provisions of this subsection, shall be in stock
60	60	33in a corporation that satisfies the requirements for treatment as “qualified small business stock” 3 of 3
61	61	34under section 1202(c) of the federal Internal Revenue Code, without regard to the requirement
62	62	35that the corporation be a C corporation.
63	63	36 SECTION 4. Section 6F of chapter 62 of the General Laws, as amended by section 17 of
64	64	37chapter 209 of the Acts of 2018, is hereby further amended by striking subsection (b)(2)(C) and
65	65	38replacing it with the following:-
66	66	39 (C) In the case of property acquired after December thirty-first, 2023 from a decedent
67	67	40within the meaning of section one thousand and fourteen (b) of the Code, the initial basis of such
68	68	41property shall be determined without application of the provisions of section one thousand and
69	69	42fourteen of the Code.