The bill outlines the Department of Revenue's (DOR) report regarding the determination of whether net state tax revenues for the fiscal year 2025 exceeded the allowable state tax revenues as defined by Chapter 62F of the Massachusetts General Laws. For the period of July 1, 2024, through June 30, 2025, the DOR estimates that the total net state tax revenues amount to $44,668,722,576, which includes $728,589,816 from non-DOR collected revenues. After excluding the estimated $2,987,020,296 from the newly implemented 4% income surtax, the net state tax revenues are calculated to be $41,681,702,279. This figure is below the allowable state tax revenue of $46,384,735,613, resulting in a shortfall of $4,703,033,334.

Additionally, the report includes a calculation of the allowable state tax growth factor for fiscal year 2025, which is determined to be 1.0510744. This growth factor is applied to the allowable state tax revenues from the previous fiscal year to establish the new allowable limit. The DOR is required to submit this report to the State Auditor, who will certify the accuracy of the calculations and determine whether the net state tax revenues exceed the allowable limit by September 16, 2025. The report emphasizes the exclusion of the 4% income surtax revenues from the limitations set by Chapter 62F, ensuring that these funds do not impact the overall assessment of state tax revenue growth.