The proposed bill aims to limit the growth of state tax collection and ensure that any surplus revenue is returned to taxpayers. It amends the definitions of "Computed Maximum State Tax Revenues" and "State Tax Revenues" in Chapter 62F of the General Laws. Specifically, it establishes that for any fiscal year beginning after June 30, 2027, the maximum state tax revenues will be determined by multiplying the net state tax revenues from the previous fiscal year by an allowable growth factor. Additionally, the bill includes all revenue from the surtax on incomes exceeding $1 million in the calculation of the revenue limit.

Furthermore, the bill mandates that if the state's collected revenue exceeds the established limit, the surplus will be refunded to taxpayers in the following year. It also includes a provision stating that if any part of the law is deemed invalid by a court, the remaining sections will still remain in effect. The changes are set to take effect on July 1, 2027, and aim to create a more predictable and taxpayer-friendly approach to state revenue collection.

Statutes affected:
Bill Text: 62F-2, 29-2BBBBBB