Massachusetts 2023-2024 Regular Session

Massachusetts Senate Bill S2406 Compare Versions

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1	1	1 of 14
2	2	SENATE . . . . . . . . . . . . . . No. 2406
3	3	Senate, June 15, 2023 -- Text of the Senate amendment to the House Bill to improve the
4	4	Commonwealth’s competitiveness, affordability, and equity (House, No. 3770) (being the text of
5	5	Senate, No. 2397, printed as amended)
6	6	The Commonwealth of Massachusetts
7	7	_______________
8	8	In the One Hundred and Ninety-Third General Court
9	9	(2023-2024)
10	10	_______________
11	11	1 SECTION 1. Section 5K of chapter 59 of the General Laws, as appearing in the 2020
12	12	2Official Edition, is hereby amended by striking out, in lines 14 and 39, the figure “$1,500” and
13	13	3inserting in place thereof, in each instance, the following figure:- $2,000.
14	14	4 SECTION 2. Said chapter 59 is hereby further amended by inserting after section 5N the
15	15	5following section:-
16	16	6 Section 5O. (a) In any city or town that accepts this section, the board of selectmen of the
17	17	7town, the town council of a municipality having a town council form of government or the
18	18	8mayor of a city, with the approval of the city council, may establish a property tax exemption for
19	19	9real property classified as Class One, residential in the city or town. To qualify for the
20	20	10exemption, the property shall be: (i) rented at an affordable housing rate, as determined by the
21	21	11city or town and in accordance with the United States Department of Housing and Urban
22	22	12Development guidance and regulations; (ii) rented on a yearly basis; and (iii) occupied year-
23	23	13round by a person or persons whose household income does not exceed an amount to be set by
24	24	14the city or town; provided, however, that said income shall not be more than 200 per cent of the
25	25	15area median income. The property tax exemption shall be for an amount determined by the city 2 of 14
26	26	16or town; provided, however, that the amount shall not be more than the tax otherwise due on the
27	27	17parcel based on the full and fair assessed value multiplied by the square footage of the housing
28	28	18units rented and occupied by a person or persons whose household income is not more than the
29	29	19income limit set pursuant to clause (iii), divided by the total square footage of a structure located
30	30	20on the parcel. Assessment of property seeking an exemption under this section, if by an income
31	31	21approach to value, shall assume fair market rent for all units. The property owner seeking the
32	32	22exemption shall submit to the city or town any documentation the city or town deems necessary,
33	33	23including, but not limited to, a signed lease and proof of the occupying person or persons’
34	34	24household income, to confirm the eligibility of the property for the exemption under this section.
35	35	25 (b) A municipality may adopt ordinances or by-laws to implement this section.
36	36	26 SECTION 3. Section 3 of chapter 62 of the General Laws is hereby amended by striking
37	37	27out, in line 109, as appearing in the 2020 Official Edition, the figure “$3,000” and inserting in
38	38	28place thereof the following figure:- $4,000.
39	39	29 SECTION 4. Said section 3 of said chapter 62 is hereby further amended by striking out,
40	40	30in lines 158 and 159, as so appearing, the words “weekly or monthly transit commuter passes”
41	41	31and inserting in place thereof the following words:- fares.
42	42	32 SECTION 5. Said section 3 of said chapter 62 is hereby further amended by inserting
43	43	33after the word “boat”, in line 160, as so appearing, the following words:- , or for regional transit
44	44	34authority fares, or for bikeshare memberships, or for bicycles, including electric bikes, or for
45	45	35bicycle improvements, repair and storage, or for any fare for a commuter boat owned, operated
46	46	36or contracted by a municipality, public or quasi-public entity, agency or authority. 3 of 14
47	47	37 SECTION 6. Paragraph (a) of part B of said section 3 of said chapter 62, as amended by
48	48	38section 24 of chapter 24 of the acts of 2021, is hereby further amended by adding the following
49	49	39subparagraph:-
50	50	40 (20) An amount equal to the amount of student loan payment assistance received by an
51	51	41individual from their employer during the taxable year not already excluded under section 127 of
52	52	42the Code. For the purposes of this subparagraph, “student loan payment assistance” shall mean
53	53	43the payment of principal or interest on a qualified education loan, as defined in section 221 of the
54	54	44Code.
55	55	45 SECTION 7. Section 6 of said chapter 62 is hereby amended by striking out, in line 75,
56	56	46as appearing in the 2020 Official Edition, the words “one thousand five hundred dollars” and
57	57	47inserting in place thereof the following figure:- $3,000.
58	58	48 SECTION 8. Said section 6 of said chapter 62 is hereby further amended by striking out,
59	59	49in line 86, as so appearing, the words “five hundred dollars” and inserting in place thereof the
60	60	50following figure:- $1,000.
61	61	51 SECTION 9. Said section 6 of said chapter 62 is hereby further amended by striking out,
62	62	52in lines 245 and 250, as so appearing, the figure “30” and inserting in place thereof, in each
63	63	53instance, the following figure:- 40.
64	64	54 SECTION 10. Said section 6 of said chapter 62 is hereby further amended by striking
65	65	55out, in line 269, as so appearing, the figure “40” and inserting in place thereof the following
66	66	56figure:- 60. 4 of 14
67	67	57 SECTION 11. Said section 6 of said chapter 62 is hereby further amended by striking
68	68	58out, in lines 271 and 272, as so appearing, the words “as promulgated by the department of
69	69	59environmental protection in 1995” and inserting in place thereof the following words:- of the
70	70	60State Environmental Code.
71	71	61 SECTION 12. Said section 6 of said chapter 62 is hereby further amended by striking
72	72	62out, in line 273, as so appearing, the figure “$15,000” and inserting in place thereof the following
73	73	63figure:- $30,000.
74	74	64 SECTION 13. Said section 6 of said chapter 62 is hereby further amended by striking
75	75	65out, in line 277, as so appearing, the figure “$1,500” and inserting in place thereof the following
76	76	66figure:- $4,000.
77	77	67 SECTION 14. Said section 6 of said chapter 62 is hereby further amended by striking
78	78	68out, in line 279, as so appearing, the figure “$6,000” and inserting in place thereof the following
79	79	69figure:- $18,000.
80	80	70 SECTION 15. Said section 6 of said chapter 62 is hereby further amended by striking
81	81	71out, in line 290, as so appearing, the figure “2023” and inserting in place thereof the following
82	82	72figure:- 2028.
83	83	73 SECTION 16. Said section 6 of said chapter 62 is hereby further amended by striking
84	84	74out, in line 296, as so appearing, the figure “2024” and inserting in place thereof the following
85	85	75figure:- 2029.
86	86	76 SECTION 17. Paragraph (4) of subsection (j) of said section 6 of said chapter 62, as so
87	87	77appearing, is hereby amended by adding the following sentence:- For the purposes of the 5 of 14
88	88	78Brownfields Redevelopment Fund, “state financial assistance” shall mean the amount of any
89	89	79grant or principal amount of any loan, but shall not include any loan principal repaid as of the
90	90	80date the credit application is filed with the commissioner. Net response and removal costs shall
91	91	81not include any reimbursement that is received, or will be received, by the applicant, or any
92	92	82amounts paid on behalf of the applicant from any source for these costs.
93	93	83 SECTION 18. Said section 6 of said chapter 62 is hereby further amended by striking
94	94	84out, in line 447, as so appearing, the figure “$750” and inserting in place thereof the following
95	95	85figure:- $1,500.
96	96	86 SECTION 19. Said section 6 of said chapter 62 is hereby further amended by striking
97	97	87out, in line 732, as so appearing, the figure “$6,000,000” and inserting in place thereof the
98	98	88following figure:- $8,000,000.
99	99	89 SECTION 20. Subsection (q) of said section 6 of said chapter 62 is hereby amended by
100	100	90striking out paragraph (5), as so appearing, and inserting in place thereof the following
101	101	91paragraph:-
102	102	92 (5) EOHLC may authorize not more than $30,000,000 in credits annually under this
103	103	93subsection and section 38BB of chapter 63. EOHLC may authorize annually any credits under
104	104	94this subsection or said section 38BB of said chapter 63 returned to EOHLC by a certified
105	105	95housing development project. The total amount of credits authorized during a year shall include:
106	106	96(1) credits granted during the year pursuant to this subsection or said section 38BB of said
107	107	97chapter 63; and (2) carry forwards of credits from prior years pursuant to this subsection or said
108	108	98section 38BB of said chapter 63, to the extent that such credit carry forwards are estimated by the
109	109	99commissioner to offset tax liabilities during the year. Any portion of the $30,000,000 annual cap 6 of 14
110	110	100not awarded by EOHLC in a calendar year shall not be applied to awards in a subsequent year.
111	111	101EOHLC shall provide the commissioner of revenue with any documentation that the
112	112	102commissioner deems necessary to confirm compliance with the annual cap and the commissioner
113	113	103shall provide a report confirming compliance with the annual cap to the secretary of
114	114	104administration and finance and the secretary of housing and economic development.
115	115	105 SECTION 21. Said section 6 of said chapter 62 is hereby further amended by inserting
116	116	106after the figure “31-33”, in line 1158, as so appearing, the following words:- and other expansion
117	117	107industries the secretary of labor and workforce development identifies as critical to a regional
118	118	108labor market economy.
119	119	109 SECTION 22. Said section 6 of said chapter 62 is hereby further amended by striking out
120	120	110subsections (x) and (y), as most recently amended by sections 30 to 33, inclusive, of chapter 102
121	121	111of the acts of 2021, and inserting in place thereof the following subsection:-
122	122	112 (x) For the purposes of this subsection, “maintains a household” shall have the same
123	123	113meaning as in section 21 of the Code. With respect to a taxpayer who is a non-resident for part of
124	124	114the taxable year, the credit shall be further limited to the amount of allowable credit multiplied
125	125	115by a fraction, the numerator of which shall be the number of days in the taxable year the person
126	126	116resided in the commonwealth and the denominator of which shall be the number of days in the
127	127	117taxable year. A taxpayer who maintains a household that includes as a member at least 1
128	128	118individual: (i) under the age of 13 who qualifies for exemption as a dependent under section 151
129	129	119of the Code; (ii) who is a qualifying individual as defined in said section 21 of the Code; or (iii)
130	130	120at least 1 individual: (A) who is not less than 65 years of age or who is disabled; and (B) who
131	131	121qualifies as a dependent under section 152 of the Code, shall be allowed a credit in an amount 7 of 14
132	132	122equal to $310 for each such dependent or qualifying individual with respect to the taxpayer;
133	133	123provided, however, that if the taxpayer is married at the close of the taxable year, the credit
134	134	124provided in this subsection shall be allowed if: (a) the taxpayer and the taxpayer’s spouse file a
135	135	125joint return for the taxable year; or (b) the taxpayer qualifies as a head of household under
136	136	126section 2(b) of the Code. A person who is a non-resident for the entire taxable year shall not
137	137	127qualify for the credit. If the amount of the credit allowed under this subsection exceeds the
138	138	128taxpayer’s tax liability, the commissioner shall treat the excess as an overpayment and shall pay
139	139	129the taxpayer the entire amount of the excess without interest.
140	140	130 SECTION 23. Section 6I of said chapter 62 is hereby amended by striking out, in line70,
141	141	131as so appearing, the figure “$40,000,000” and inserting in place thereof the following figure:-
142	142	132$60,000,000.
143	143	133 SECTION 24. Section 6 of chapter 62C of the General Laws, as so appearing, is hereby
144	144	134amended by striking subsection (a) and inserting in place thereof the following subsection:-
145	145	135 (a)(1) Every individual inhabitant of the commonwealth who receives or accrues during
146	146	136the taxable year Massachusetts gross income, as defined in section 2 of chapter 62, in excess of
147	147	137$8,000 shall make a return of such income.
148	148	138 Every nonresident whose Massachusetts gross income, determined in accordance with
149	149	139section 5A of chapter 62, exceeds $8,000 or the personal exemption to which such nonresident
150	150	140may be entitled under section 3 of said chapter 62, whichever is the lesser, and every partnership,
151	151	141association or trust whose federal gross income, as defined in section 1 of said chapter 62,
152	152	142exceeds one $100, shall make a return of such income. 8 of 14
153	153	143 Every individual, not otherwise required to file a return under this subsection, who is a
154	154	144resident for a portion of a 12-month period beginning on the first day of a taxable year and a
155	155	145nonresident for a portion of the same 12-month period and whose Massachusetts gross income,
156	156	146as defined in section 2 of chapter 62, exceeds $8,000 shall make separate returns as a resident
157	157	147and a nonresident of his income subject to taxation under said chapter 62.
158	158	148 (2) A married couple shall file a joint return for any year in which they file a joint federal
159	159	149income tax return. In cases where 1 spouse or both spouses are non-residents of the
160	160	150commonwealth and have items of income, exemptions or deductions unrelated to their
161	161	151Massachusetts income, the department shall provide by regulation for appropriate adjustments or
162	162	152for exemption from the requirement to file a joint return.
163	163	153 SECTION 25. Section 5 of chapter 62F of the General Laws, as so appearing, is hereby
164	164	154amended by adding the following subsection:-
165	165	155 (e) Monthly, the department of revenue shall submit a report to the clerks of the senate
166	166	156and the house of representatives, the joint committee on revenue and the senate and house
167	167	157committees on ways and means on net state tax revenue for the current fiscal year, projections
168	168	158for net state tax revenue for the remainder of said fiscal year and an estimate of if, and when, net
169	169	159state tax revenue may exceed allowable state tax revenue for said fiscal year.
170	170	160 SECTION 26. Section 38Q of chapter 63 of the General Laws, as so appearing, is hereby
171	171	161amended by striking out, in line 3, the figure “2023” and inserting in place thereof the following
172	172	162figure:- 2028. 9 of 14
173	173	163 SECTION 27. Said section 38Q of said chapter 63, as so appearing, is hereby further
174	174	164amended by striking out, in line 9, the figure “2024” and inserting in place thereof the following
175	175	165figure:- 2029.
176	176	166 SECTION 28. Subsection (d) of said section 38Q of said chapter 63, as so appearing, is
177	177	167hereby amended by adding the following sentence:- For the purpose of the Brownfields
178	178	168Redevelopment Fund, “state financial assistance” shall mean the amount of any grant or
179	179	169principal amount of any loan, but shall not include any loan principal repaid as of the date the
180	180	170credit application is filed with the commissioner. Net response and removal costs shall not
181	181	171include any reimbursement that is received, or will be received, by the applicant, or any amounts
182	182	172paid on behalf of the applicant from any source for these costs.
183	183	173 SECTION 29. Section 38Z of said chapter 63, as so appearing, is hereby amended by
184	184	174striking out, in line 28, the figure “$6,000,000” and inserting in place thereof the following
185	185	175figure:- $8,000,000.
186	186	176 SECTION 30. Section 38BB of said chapter 63 is hereby amended by striking out
187	187	177subdivision (5), as so appearing, and inserting in place thereof the following subdivision:-
188	188	178 (5) EOHLC may authorize up to $30,000,000 in credits annually under this section and
189	189	179subsection (q) of section 6 of chapter 62. EOHLC may authorize annually any credits under this
190	190	180section or said subsection (q) of said section 6 of said chapter 62 returned to EOHLC by a
191	191	181certified housing development project. The total amount of credits authorized during a year shall
192	192	182include: (1) credits granted during the year under this section or said subsection (q) of section 6
193	193	183of chapter 62; and (2) carry forwards of credits from prior years under this section or said
194	194	184subsection (q) of section 6 of chapter 62, to the extent that such credit carry forwards are 10 of 14
195	195	185estimated by the commissioner of revenue to offset tax liabilities during the year. Any portion of
196	196	186the $30,000,000 annual cap not awarded by EOHLC in a calendar year shall not be applied to
197	197	187awards in a subsequent year. EOHLC shall provide the commissioner of revenue with any
198	198	188documentation that the commissioner deems necessary to confirm compliance with the annual
199	199	189cap and the commissioner shall provide a report confirming compliance with the annual cap to
200	200	190the secretary of administration and finance and the secretary of housing and economic
201	201	191development.
202	202	192 SECTION 31. Section 38HH of said chapter 63, as so appearing, is hereby amended by
203	203	193inserting after the figure “31-33”, in line 18, the following words:- or other expansion industries
204	204	194the secretary of labor and workforce development identifies as critical to a regional labor market
205	205	195economy.
206	206	196 SECTION 32. Section 2A of chapter 65C of the General Laws, as so appearing, is hereby
207	207	197amended by striking out subsection (a) and inserting in place the following subsection:-
208	208	198 (a) A tax is hereby imposed upon the transfer of the estate of each person dying on or
209	209	199after January 1, 1997 who, at the time of death, was a resident of the commonwealth. The
210	210	200amount of the tax shall be equal to the credit for state death taxes that would have been allowable
211	211	201to a decedent’s estate as computed under section 2011 of the Code, as in effect on December 31,
212	212	2022000, hereinafter referred to as the “credit”. If the federal gross estate of a person includes real or
213	213	203tangible personal property located outside of the commonwealth at the time of death, the tax
214	214	204shall be reduced by an amount equal to the proportion of such allowable credit as the value of
215	215	205such real or tangible personal property located outside of the commonwealth bears to the value 11 of 14
216	216	206of the entire federal gross estate wherever situated, as determined under section 2011 of the
217	217	207Code, as in effect on December 31, 2000.
218	218	208 SECTION 33. Said section 2A of said chapter 65C, as so appearing, is hereby further
219	219	209amended by adding the following 2 subsections:-
220	220	210 (f) For the estates of decedents dying on or after January 1, 2023, a credit shall be
221	221	211allowed against the tax imposed by subsections (a) and (b) equal to the amount of such tax;
222	222	212provided, however, that the credit shall not exceed $99,600.
223	223	213 (g) The estates of decedents dying on or after January 1, 2023 shall not be required to pay
224	224	214any tax under subsections (a) and (b) if the value of the federal taxable estate is not more than
225	225	215$2,000,000.
226	226	216 SECTION 34. Section 21 of chapter 138 of the General Laws, as so appearing, is hereby
227	227	217amended by striking out, in lines 20 and 21, the words “six per cent of alcohol by weight” and
228	228	218inserting in place thereof the following words:- 8½ per cent of alcohol by volume.
229	229	219 SECTION 35. Said section 21 of said chapter 138, as so appearing, is hereby further
230	230	220amended by striking out, in line 25, the word “six” and inserting in place thereof the following
231	231	221figure:- 8 ½.
232	232	222 SECTION 36. Sections 46, 48, 61, 63 and 124A of chapter 287 of the acts of 2014 are
233	233	223hereby repealed.
234	234	224 SECTION 37. Chapter 358 of the acts of 2020 is hereby amended by striking out section
235	235	22559. 12 of 14
236	236	226 SECTION 38. Section 112 of said chapter 358 is hereby amended by striking the words
237	237	227“Sections 59 and” and inserting in place thereof the following word:- Section.
238	238	228 SECTION 39. Notwithstanding any general or special law to the contrary, in calendar
239	239	229year 2023, the executive office of housing and livable communities may authorize not more than
240	240	230$57,000,000 in credits under subsection (q) of section 6 of chapter 62 of the General Laws and
241	241	231section 38BB of chapter 63 of the General Laws. Any portion of this amount that is not
242	242	232authorized in calendar year 2023 shall be added to the amount the executive office of housing
243	243	233and livable communities may authorize in subsequent years under said subsection (q) of said
244	244	234section (6) of said chapter 62 and said section 38BB of said chapter 63.
245	245	235 SECTION 40. The executive office for administration and finance shall conduct a study
246	246	236on the feasibility of creating a program of advance quarterly payments to taxpayers for credits
247	247	237that the department of revenue estimates would be treated as allowed for a taxpayer under
248	248	238subsection (x) of section 6 of chapter 62 of the General Laws for a taxable year. The study shall
249	249	239include, but not be limited to: (i) an operational plan for how the department of revenue could
250	250	240establish and maintain such a program; (ii) a description of the processes by which the
251	251	241department could collect information from taxpayers and from other agencies to maximize the
252	252	242accuracy of the department’s estimate of the amount that would be treated as allowed for a
253	253	243taxpayer under said subsection (x) of said section 6 of said chapter 62 for a taxable year; (iii) a
254	254	244description of the options for maximizing participation in such a program by taxpayers who are
255	255	245eligible for credits under said subsection (x) of said section 6 of said chapter 62; (iv) an analysis
256	256	246of any other credits against tax included in said section 6 of said chapter 62 that the department
257	257	247could include in an advance quarterly payment program; (v) potential challenges to the
258	258	248establishment of such a program and strategies by which the department could address those 13 of 14
259	259	249challenges; (vi) any legislative recommendations to support the establishment of such a program,
260	260	250if applicable; and (vii) an estimate of the funds that would be necessary for the department to
261	261	251establish and maintain such a program, if applicable.
262	262	252 The executive office shall submit a report of its findings to the house and senate
263	263	253committees on ways and means not later than January 1, 2024.
264	264	254 SECTION 41. Notwithstanding any general or special law to the contrary, the department
265	265	255of revenue shall analyze the potential impact of implementing an additional, elective entity-level
266	266	256tax of up to 4 per cent on a portion of qualified taxable income in the commonwealth of eligible
267	267	257pass-through entities defined in section 1 of chapter 63D of the General Laws, coupled with a
268	268	258refundable tax credit. The analysis shall consider: (i) the impacts on the commonwealth’s
269	269	259taxpayers and tax revenue; (ii) the feasibility of administering the additional elective tax; (iii) the
270	270	260feasibility of determining the portion of qualified income taxable in the commonwealth pursuant
271	271	261to this section based on: (A) an annual threshold tied to the threshold under Article XLIV of the
272	272	262Amendments of the Constitution; or (B) the consent of each qualified member to have a portion
273	273	263of the member’s share of qualified income taxable in the commonwealth subject to the additional
274	274	264tax; (iv) passthrough entity tax regimes in other states; and (v) the impact of any tax on qualified
275	275	265members with taxable income below the annual threshold under said Article XLIV.
276	276	266 The department of revenue shall submit a report of its findings to the clerks of the senate
277	277	267and house of representatives, the joint committee on revenue and the senate and house
278	278	268committees on ways and means not later than October 1, 2023.
279	279	269 SECTION 42. The department of revenue, in consultation with the executive office of
280	280	270housing and livable communities, shall conduct a study on establishing a closing costs assistance 14 of 14
281	281	271program to be operated in tandem with a first-time homebuying savings program for income-
282	282	272eligible first-time homebuyers. The study shall include, but not be limited to: (i) an analysis of
283	283	273the impact that such a program would have for first-time homebuyers; (ii) an analysis of the
284	284	274funding necessary to make such a program effective; (iii) recommendations on any income
285	285	275restriction for recipients of grants awarded from such a program that would make the program
286	286	276most impactful; (iv) an assessment of best practices for partnering with financial institutions to
287	287	277implement first-time homebuyer savings accounts; (v) any anticipated cost or revenue impact to
288	288	278the commonwealth associated with such an assistance and savings program; and (vi) the
289	289	279feasibility of and a detailed plan to implement such programs. The department of revenue shall
290	290	280submit its findings and recommendations to the clerks of the senate and house of representatives,
291	291	281the senate and house committees on ways and means and the joint committee on housing not
292	292	282later than January 1, 2024.
293	293	283 SECTION 43. Sections 3, 9 and 18 shall apply to tax years beginning on or after January
294	294	2841, 2023.
295	295	285 SECTION 44. Sections 20 and 30 shall take effect as of January 1, 2024.
296	296	286 SECTION 45. Section 24 shall apply to tax years beginning on or after January 1, 2023.
297	297	287 SECTION 46. Sections 32 and 33 shall take effect for the estates of decedents dying on
298	298	288or after January 1, 2023.
299	299	289 SECTION 47. Except as otherwise specified, this act shall take effect for taxable years
300	300	290beginning on or after January 1, 2023.