Creating a 'Chapter 62F calculations' study group of fiscal harms caused by excluding new local tax revenue from "allowable state tax revenue" calculations and other such calculations
Impact
If enacted, HB 4078 would mandate the appointment of a study group by the commissioner of the Department of Revenue. This group would analyze several critical factors affecting the calculation of state tax revenues for each fiscal year. Specific areas of focus include tax revenues from local activities like retail sales, meals, and other excises, as well as issues concerning the inclusion of specific designated revenues in the overall tax revenue calculations. Ultimately, the findings of this study could lead to recommendations for changes in legislation that may impact how state tax revenue is defined and calculated moving forward.
Summary
House Bill 4078, presented by Representative Michelle M. DuBois, aims to establish a study group tasked with reviewing and evaluating the fiscal impacts of excluding new local tax revenues from the calculations of allowable state tax revenue as defined in Chapter 62F of the Massachusetts General Laws. The bill is motivated by concerns over how current calculations may not accurately reflect the state’s financial landscape, particularly in relation to revenues generated from municipalities.
Contention
The bill's introduction suggests a recognition of existing disparities in revenue collection and the impacts of inflation and changes in local taxation on state revenues. Some may view the need for such a study as indicative of flaws in the current revenue assessment process, while others could argue that conducting this study may lead to unnecessary complications or adjustments in existing laws. The expected report by June 30, 2024, will likely stimulate further debate on the adequacy and accuracy of the state’s revenue calculation practices under Chapter 62F.
Creating a 'Chapter 62F calculations' study group of fiscal harms caused by excluding new local tax revenue from "allowable state tax revenue" calculations and other such calculations
School funding; State Aid; calculation; increasing percentages of allowable general fund carryover; weighted calculations; effective date; conditional effect.