Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H4271 Compare Versions

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

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2	2	HOUSE DOCKET, NO. 4489 FILED ON: 7/24/2023
3	3	HOUSE . . . . . . . . . . . . . . . No. 4271
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	James Arciero
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 relative to municipal income-based taxation.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:James Arciero2nd Middlesex7/24/2023Peter Barbella62 Goldsmith Street, Littleton, MA
16	16	01460
17	17	7/24/2023 1 of 2
18	18	HOUSE DOCKET, NO. 4489 FILED ON: 7/24/2023
19	19	HOUSE . . . . . . . . . . . . . . . No. 4271
20	20	By Representative Arciero of Westford, a petition (subject to Joint Rule 12) of James Arciero
21	21	and Peter Barbella relative to local taxes based on personal or business income instead of local
22	22	real property taxes. Revenue.
23	23	The Commonwealth of Massachusetts
24	24	_______________
25	25	In the One Hundred and Ninety-Third General Court
26	26	(2023-2024)
27	27	_______________
28	28	An Act relative to municipal income-based taxation.
29	29	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
30	30	of the same, as follows:
31	31	1 Chapter 59 of the General Laws is hereby amended by adding the following section:-
32	32	2 Section 95. (a) For the purposes of this section the following words shall, unless the
33	33	3context clearly requires otherwise, have the following meanings:
34	34	4 “Commercial and industrial evaluation” or “CIE”, the sum total of income reported by
35	35	5every business registered in a city or town on the appropriate Massachusetts state tax forms.
36	36	6 “Commercial and industrial levy” or “CIL”, the proportion determined by the city or
37	37	7town the business is registered in of the tax levy rate imposed on business’ total income reported.
38	38	8 “Resident levy” or “RL”, the proportion determined by the city or town the resident is
39	39	9legally residing in of the levy rate imposed on resident’s personal income.
40	40	10 “Total resident evaluation” or “TRE”, the sum total of personal income for every
41	41	11individual legally residing in a city or town as reported on Massachusetts state tax form 1. 2 of 2
42	42	12 (b) Notwithstanding any general or special law to the contrary, if a city or town accepts
43	43	13this section by a vote of its city or town council, town select board or board of selectmen, the city
44	44	14or town may, in accordance with this section, assess local taxes based on personal or business
45	45	15income instead of local real property taxes pursuant to section 2A.
46	46	16 (c) Under subsection (b), each city and town shall hold classification hearings to
47	47	17determine the proportion of its tax levy requirements for RL and CIL respectively. The sum of
48	48	18RL and CIL will equal the total amount the city or town must raise through local taxes.
49	49	19 (d) The city or town's income based tax rate for residents shall be calculated by dividing
50	50	20the city or town's RL from its TRE.
51	51	21 (e) The city or town’s income based tax rate for businesses shall be calculated by
52	52	22dividing the city or town's CIL from its CIE.
53	53	23 (f) The city or town shall levy taxes on its residents equal to the resident's personal
54	54	24income multiplied by the income based residents tax rate.
55	55	25 (g) The town shall levy taxes on its businesses equal to the income based commercial and
56	56	26industrial tax rate multiplied by the reported business income.