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Page 18 THE MALDEN ADVOCATE–Friday, October 13, 2023 BHRC | FROM PAGE 17 form credit of $99,600; increasing the refundable tax credit for a dependent child, disabled adult or senior from $180 to $310 per dependent in taxable year 2023, and then to $440 in subsequent years while eliminating the child/ dependent cap; doubling the refundable senior circuit breaker tax credit from $1,200 to $2,400; increasing the refundable Earned Income Tax Credit from 30 percent to 40 percent of the federal credit; and reducing the short-term capital gains tax rate from 12 percent to 8.5 percent. Other provisions double the lead paint tax credit to $3,000 for full abatement and $1,000 for partial abatement; ensure that employer student loan payments are not treated as taxable compensation; make public transit fares, as well as ferry and regional transit passes and bike commuter expenses, eligible for the commuter expense tax deduction; increase from $1,500 to $2,000 the maximum that municipalities may pay seniors to do volunteer work to reduce their property taxes; raise the annual authorization for the low income housing tax credit from $40 million to $60 million; and allow cities and towns to adopt a local property tax exemption for affordable real estate that is rented by a person whose income is less than a certain level set by the municipality. The measure also includes two OUT OF STATE PROPERTY AND THE MASS ESTATE TAX estate tax return based upon the 1999 Revision date. We, as preparers, have to prepare the current Massachusetts estate tax return and the federal estate tax return, Form 706, as it existed back in 1999. The good news is that an M assachusetts General Laws Chapter 65C, Section 1(f) specifically exempts from the Massachusetts estate tax tangible personal property and real estate located outside of Massachusetts. The Commonwealth of Mass directs taxpayers to calculate the federal gross estate for estate tax purposes and then provides for a reduction of out of state tangible personal property and out of state real estate. Under the current proposed tax relief package that is now on Governor Healey’s desk (that she has until October 8, 2023 to sign), the estate tax exemption will be increased to $2,000,000. If a taxpayer dies with a $2,000,000 taxable estate, the $2,000,000 is reduced by $60,000 in order to arrive at the adjusted taxable estate, or $1,940,000. The Table B Computation of Maximum Credit for State Death Taxes results in a credit of $99,600. This table is utilized by the Commonwealth of Massachusetts to determine the estate tax due when someone dies in Massachusetts. Under the old federal estate tax law, the IRS allowed a credit for state death taxes on the federal estate tax return. The federal government no longer allows for this tax credit. Massachusetts, however, actually uses that table to determine the Massachusetts estate tax due. The Massachusetts estate tax return actually piggy backs the prior Federal estate of $2.5million would only result in $44,000 in Massachusetts estate taxes. Compare this with the current estate tax provision in Massachusetts which would result in an estate tax of $143,600. Quite a big difference. This is due to the $99,600 credit against the Massachusetts estate tax based upon the first $2million of the gross estate being exempt from the estate tax. Only the estate value over $2million is actually subject to tax. The Dassori v. Commissioner of Revenue 2016 decision involved a case of first impression. The probate court judge decided the case against the Commonwealth of Massachusetts holding that a real estate investment in Paris, France was not subject to the Massachusetts estate tax. The real estate in question was held in a vehicle similar to a nominee realty trust utilized by real estate attorneys in Massachusetts. The Commonwealth tried to argue that the real estate investment was intangible personal property due to the nature of the taxpayer’s interest in the entity that actually held title to the real estate. The probate judge considered the investment to be real estate based upon Massachusetts law and, as such, the real estate could not be subject to estate tax by Massachusetts. Otherwise, that would represent a due process violation under the 14th amendment to the Constitution. Joseph D. Cataldo is an estate planning/elder law attorney, Certified Public Accountant, Certified Financial Planner, AICPA Personal Financial Specialist and holds a master’s degree in taxation. provisions which the Mass Fiscal Alliance says will result in tax hikes. One would require Massachusetts married couples who file income tax returns jointly at the federal level to do the same at the state level. The other changes the system under Chapter 62F that requires that annual tax revenue above a certain amount collected City of Malden Community Preservation Committee Monthly Meeting and Public Hearing Agenda Wednesday, October 18, 2023, 6:00 PM Monthly Meeting and Public Hearing Agenda Hybrid City Hall Room #105 (in-person) Live streamed via Zoom (virtual) On March 29, 2023, Governor Healey signed legislation extending certain COVID-19 relief measures including extending remote meetings for public bodies. The same provisions which permitted public bodies to meet remotely, or convene in a hybrid manner, have been extended through March 31, 2025. This extension allows public bodies to continue to meet remotely or to meet in a hybrid manner, without a quorum of the public body physically present at a meeting location. The law requires that a public body provide “adequate, alternative” access to remote meetings. Additional information/guidelines for the public can be found here: https://www. mass.gov/service-details/updated-guidance-on-holding-meetings-pursuantto-the-act-extending-certain-covid-19-measures. Members of the public who wish to attend remotely can do so using the following information: https://cityofmalden.zoom.us/j/94555285228 Webinar ID: 945 5528 5228 Or join by phone from the US: +1 646 518 9805 or +1 929 436 2866 If you would like to request a reasonable accommodation, please contact Maria Luise, ADA Compliance Coordinator at mluise@cityofmalden.org or 781-397-7000, Ext 2005 Agenda 1. Call to Order/ Roll Call 2. Public Hearing a. 009_Malden River Works b. 0010_Malden Hospital Open Space c. 0012_Fitzgerald Park 3. Adjournment of Public Hearing and Start of CPC Monthly Meeting 4. Approval of Meeting Minutes from September 2023 5. CPC Annual Report 6. Other Business 7. Adjournment of CPC Monthly Meeting NEXT MEETING: November 15th CPC Monthly Meeting and Public Hearing for the following projects: 1. 0013_Linden Rink 2. 0015_Oak Grove Community Building 3. 0018_15 Ferry Street October 06, 13, 2023 by the state go back to the taxpayers. Under current law, the money is returned to taxpayers based on what he or she earned and paid in taxes.The new tax package changed that and provides that each taxpayer will receive a flat rate refund, unrelated to what they earned or paid in taxes. “We are thrilled to deliver on our promise to pass tax cuts that will result in real savings for the people of Massachusetts, including the country’s largest child and family tax credit that will go back in the pockets of parents and caregivers,” said Gov. Healey. “Everywhere we go, we hear about how people are struggling to keep up with the rising cost of living. This tax package delivers savings for those who need it most, while making long overdue changes that will better allow Massachusetts to compete with other states.” “The High Tech Council appreciates the effort Gov. Healey and the Legislature put into this first step towards addressing the state’s tax outlier status,” said High Tech Council President Chris Anderson. “Unfortunately, the final tax ‘relief’ legislation falls short of delivering the meaningful change needed, as it includes both an expansion of the voter-approved income surtax and an unconstitutional redistribution of income through changes to the voter-approved Chapter 62F rebate formula.” Anderson concluded, “The High Tech Council looks forward to collaborating with Gov. Healey, her cabinet and legislators across the commonwealth who are committed to defending and strengthening our business climate and the associated high quality of life BHRC | SEE PAGE 19

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