BOSTON (WWLP) – Democrats on Beacon Hill are looking to change the Chapter 62F law.
Several bills have been filed to repeal the tax cap law that was triggered last year and sent money back to taxpayers. Chapter 62F is a law that caps allowable state tax collections at a level that is tied to annual wage and salary growth.
When it was triggered last year, lawmakers on Beacon Hill were caught off guard and it caused them to scrap tax relief efforts. An issue raised by multiple lawmakers last session was the breakdown of refunds. Money was returned in a proportional manner to the amount of taxes paid, meaning those who made the most money received the most back.
However, economic analysts believe that it’s not likely Massachusetts will trigger this law again this year or next. There are at least four bills that have been filed that would repeal the voter-approved law, filed by Senator Eldridge of Acton, Representative Fernandes of Falmouth, Representative Dubois of Brockton, and Representative Mike Connolly of Cambridge.
“It only returns revenue to income taxpayers, and that systematically excludes our most vulnerable residents. It was terribly inequitable and of that $2.94 billion that we returned to taxpayers last year about a third of that money went to those with incomes greater than $1 million.”
If the state finds itself with another surplus, Representative Connelly believes tax refunds should be approved through the legislature. Chapter 62F has only been triggered twice in state history.