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Page 8 THE REVERE ADVOCATE – FRIDAY, OCTOBER 6, 2023 Mass. Legislature passes comprehensive tax relief package Bill includes $561.3 million in tax relief in FY24, $1.02 billion in FY27 and beyond W ith the goal of providing fi nancial relief to families across the Commonwealth while making Massachusetts more competitive with other states, the Massachusetts Legislature overwhelmingly enacted a bipartisan tax relief package supporting residents across all income levels on September 28. The Senate and House both passed their versions of the bill earlier this year and reconciled diff erences in their versions before enacting the bill. The bill is now on Governor Maura Healey’s desk for her signature and/ or other actions. “This tax relief package strikes the critically important balance of providing permanent fi nancial relief to residents and businesses across Massachusetts, without compromising the long-term fi nancial security of the Commonwealth,” stated Speaker of the House Ronald J. Mariano (D-Quincy). “I’m confi dent that this tax reform legislation will help to make Massachusetts more aff ordable for all residents, while also helping to make the Commonwealth more competitive with other states. I want to thank Chairman Michlewitz, the members of the conference committee and all the members of the House, as well as Senate President Spilka and our partners in the Senate for working diligently to get this done.” “This is the most signifi cant tax relief package in a generation,” said Senate President Karen E. Spilka (D-Ashland). “This legislation is going to put real dollars into the pockets of the people who need it most, including parents, seniors, young people, and middle-class families who are struggling to keep up with rising costs. This bill includes a historic expansion of housing programs that will ignite aff ordable housing development and ease the housing crunch, as well as signifi cant relief for families with young children. It will also make Massachusetts a more competitive place to live and work and encourages businesses to continue investing in our region. I am deeply grateful for the work of Chair Rodrigues and Senator Moran on this package, as well as all of the Senate members, and off er my sincere thanks to Speaker Mariano and our colleagues in the House for their partnership and collaboration.” “This tax relief package will help thousands of residents keep more money in their pockets by providing much needed financial assistance,” said Representative Aaron Michlewitz (D-Boston), who is Chair of the House Committee on Ways and Means. “This package will also help keep the Commonwealth an economically competitive work environment for both businesses and workers. I want to thank Speaker Mariano for his leadership, my counterparts on the conference committee for their tireless work to make this legislation possible, as well as the entire Legislature for their collaboration on this issue.” “This tax cut bill will touch almost every resident of Revere and Winthrop. Whether you are a senior, a parent, a child or a small investor, this bill focuses on providing you tax relief. I am proud to have spoken and voted in favor of this important bill. A billion-dollar tax cut is real money in the hands of the folks…” said State Representative Jeffrey Rosario Turco (D-Winthrop). “With the cost of living continuing to increase, many residents in Revere and beyond are struggling,” said RepresenJESSICA GIANNINO State Representative tative Jessica A. Giannino (DRevere). “These tax reforms will empower our families, strengthen our economy, and help build a more prosperous Commonwealth for all.” “Today the Senate took action, long in the making, to provide desperately needed tax relief to respond to household budgets under stress and employers struggling to compete in a state whose costs are a major challenge,” said Senate Minority Leader Bruce Tarr (R-Gloucester). “I have been honored to not only serve on the conference committee for this legislation, but also to work across the aisle consistently to build consensus and partnership on a matter that has been a top priority for the Senate Republican caucus for years, and a necessity for the people who pay the bills for our state government. Over the past two years we have worked to illustrate the heavy burdens being carried by people in our state for things ranging from childcare to housing, and the uphill climb employers are facing on the road to greater prosperity for our economy. This legislation is a major fi rst step that will make a real diff erence for all of them.” The compromise bill includes the following tax changes: Child and Dependent Tax Credit: The bill increases 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 taxable year 2024 and beyond, while eliminating the child/dependent cap. This expanded credit, which will benefi t more than 565,000 families, will be the most generous universal child and dependent tax credit in the country. Estate Tax: Massachusetts’ current estate tax, which has not been updated in many years, has become an outlier in several ways. The changes made in this bill update the tax to bring JEFFREY ROSARIO TURCO State Representative it more in line with other states and eliminate punitive elements of the tax for those with incomes just high enough to trigger it. The bill reduces the estate tax for all taxpayers and eliminates the tax for all estates under $2 million by allowing a uniform credit of $99,600. Earned Income Tax Credit (EITC): This bill increases the refundable EITC from 30 per cent to 40 per cent of the federal credit. This increase will provide crucial support to working individuals and families, benefi ting nearly 400,000 taxpayers with incomes under $60,000. Single Sales Factor Apportionment: Currently, most businesses in Massachusetts are subject to a three-factor apportionment based on location, payroll and receipts. To support companies headquartered in Massachusetts, this bill establishes a single sales factor apportionment in the Commonwealth based solely on receipts, matching what 39 other states currently do. Senior Circuit Breaker Tax Credit: This bill doubles the refundable senior circuit breaker tax credit, which supports limited-income seniors facing high rents or real estate taxes, from $1,200 to $2,400. This change is expected to impact over 100,000 seniors across Massachusetts. Rental Deduction Cap: This bill increases the rental deduction cap from $3,000 to $4,000. This is expected to impact about 800,000 Massachusetts taxpayers. Short-Term Capital Gains Tax: At 12 per cent, Massachusetts is among the states with the highest short-term capital gains tax rate, and it taxes shortterm capital gains at a higher rate than long-term capital gains. The bill lowers the shortterm capital gains tax rate to 8.5 per cent. RELIEF | SEE Page 9

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