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