The bill outlines the Department of Revenue's (DOR) report regarding the determination of whether net state tax revenues for the fiscal year 2026 exceeded the allowable state tax revenues as defined by Chapter 62F of the Massachusetts General Laws. The report indicates that for the period of July 1, 2025, through June 30, 2026, the total net state tax revenues collected amounted to $46,493,694,252. However, after excluding the estimated $3,380,320,213 collected from the 4% income surtax—which is not subject to the allowable state tax revenue limitations—the net state tax revenues total $43,113,374,039. This figure is below the allowable state tax revenue of $48,266,193,259, resulting in a shortfall of $5,152,819,220.

Additionally, the report includes a calculation of the allowable state tax growth factor for fiscal year 2026, which is determined to be 1.0405620. This growth factor is applied to the allowable state tax revenues from the previous fiscal year to establish the current year's 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, 2026. The report serves as a critical tool for fiscal accountability and transparency in state revenue management.