There were no roll calls in the House or Senate last week.
CHANGE DISTRIBUTION FORMULA FOR $2.9 BILLION IN TAX RELIEF (HD 5394) – Rep. Mike Connolly (D-Cambridge) has filed a bill that would change the formula for how $2.9 billion in tax refunds will be distributed to taxpayers based on Chapter 62F, a 1986 law approved by the voters.
That law requires that tax revenue above a certain amount collected by the state go back to the taxpayers on a proportional basis equal to the amount of state income tax they paid the state in 2021. Auditor Suzanne Bump has determined that the net state tax revenues of $41,812,654,358 for the fiscal year ended June 30, 2022 is $2,941,499,731 above the allowable state tax revenues of $38,871,154,627.
Connolly’s measure would establish a $6,500 limit on the maximum tax credit an individual taxpayer in Massachusetts can receive under the mandatory refund law.
Gov. Charlie Baker’s office has estimated that individuals’ refunds will total about 13% of how much a taxpayer paid to Massachusetts in personal income tax in 2021. MassBudget says that the average millionaire will get a refund check of an estimated $22,000, while the average low-income worker will receive a mere $9.
“In this time of soaring inflation and economic hardship for so many of our constituents, the goal of this bill is to limit Chapter 62F tax credits for those with million-dollar incomes and then redistribute the resulting excess to taxpayers who have incomes under $1 million,” said Connolly. “Under our proposal, 99.4% of Ch. 62F refund recipients would see an additional $200 included in their refund checks next month. That’s why I’ve dubbed the bill ‘Putting More Money In More People’s Pockets.’”
He continued, “The fastest way to get this bill approved would be to include its concepts in the pending economic development bill or the closeout supplemental budget. For my part, I am advocating for a return to formal sessions if necessary because we understand many residents are being crushed by the rising cost of living and these bills could offer some additional relief.”
Co-sponsor Rep. Jamie Belsito (D-Topsfield) said, “When I am at home talking with my mother who lives in senior housing, and she’s telling me that her friends in her housing complex can’t even buy food that they normally could have bought six to 12 months ago because of inflation — we’re not going to cut a $25,000 check for top earners in our state and turn around and say to our seniors, who are barely keeping it together, ‘here’s a $9 check for you.’”
“CLT’s 1986 tax cap law can cynically be termed ‘flawed’ only by an avowed member of the Democratic Socialists of America like state Rep. Mike Connolly,” said Chip Ford, executive director of Citizens for Limited Taxation who called the measure absurd and dubbed it as “Revenge of the Socialists.”
“The law as drafted and adopted was specifically intended as a tax refund of excess revenue in proportion to that which was extracted from each taxpayer. The more you paid into the state treasury the larger in dollars your refund would be … CLT’s tax cap refund was never considered, never mind intended, to be nor become a revenue redistribution scheme. The Merriam-Webster dictionary defines ‘refund’ as: 1: the act of refunding; 2: a sum refunded. Words it lists as synonymous to refund are ‘reimburse’ or ‘repay.’ It is and has always intended to be a proportional refund of excess revenue to those who paid it.”
“The voters in 1986 sent a clear message to Statehouse politicians that when the state collects too much money from its taxpayers, the state is obligated to refund the money collected from each taxpayer in a fair and even amount,” said Paul Craney, a spokesperson for the Massachusetts Fiscal Alliance. “Despite this clear message, our modern-day left-wing politicians want to break with the will of the voters so they can redistribute the money the way they see fit. The same politicians who are promising the 80% income tax hike will be spent on transportation and education are attempting to subvert the will of the voters who passed the 1986 rebate law. It’s deceptive and dishonest and the public needs to be weary. The contradiction could not be any clearer. Don’t trust these politicians.”
RIGHT WHALE DAY (H 3869) – The House approved and sent to the Senate a bill that would establish an annual Right Whale Day in Massachusetts on April 24.
“I filed this bill on behalf of a constituent from Pembroke, Matt Delaney, who had a special encounter with a right whale while visiting Cape Cod with his family a number of years ago,” said sponsor Rep. Josh Cutler (D-Pembroke). “Matt wanted to do something to help promote the preservation of this critically endangered species and so we filed this bill together.”
The story was told by Rob Moir, president and executive director of Ocean River Institute in Commonwealth Magazine. Moir wrote: “Ramona Delaney’s 93-year-old grandmother died peacefully on a Tuesday in April. The funeral service was held on Friday. On Saturday, Ramona, with husband Matt Delaney and 14-year-old daughter Katrina, purchased an over-sand permit for their jeep and drove out through the sand dunes of Race Point at the northernmost tip of Cape Cod. A ripple in the seawater quite close-by drew their attention. Suddenly, an enormous black head rose up. Gazing their way was a huge eye the size of a softball. The right whale wheeled forward and disappeared beneath the waves. Later, a right whale breached. Its entire body came out of the water and, rotating, it splashed down on its backside sending up great curtains of spray. The right whale breached many times over the course of about an hour.
“The Delaney family all felt this incredible, yet intimate, encounter was a sign that Ramona’s grandmother was OK. They found the solace they were seeking when the spirit of life shined brightly in a majestic right whale on that day, April 24, 2004. The Delaney family has celebrated April 24 as whale day ever since and asked that this special day become a time when everyone in the Commonwealth can cherish North Atlantic right whales.”
REVENUE COMMITTEE BILLS SENT TO A STUDY COMMITTEE – Several bills affecting the state’s tax policies were sent to a study committee where bills are rarely actually studied and are essentially defeated. It is a way to kill a proposal without holding a vote on the bill itself. Here are some of the revenue bills that were sent off to a study committee:
TAX EXEMPTIONS FOR DISABLED VETERANS (S 1934) – Would create property tax exemptions for the primary homes of veterans who are disabled as a result of their service. The state would reimburse cities and towns for this exemption.
“In my mind, helping disabled veterans is never a question,” said sponsor Sen. Mike Moore (D-Millbury). “Many vets struggle financially and struggle to find full-time employment, resulting in a disproportionately high rate of poverty and homelessness among this group. By creating a property tax exemption for disabled veterans’ homes, we can help support those who have sacrificed so much for our country. I am saddened that this legislation will not be moving forward this session — a decision will be made on whether I will refile this legislation before the start of the next session.”
UP TO $250 TAX CREDIT FOR PURCHASE AND INSTALLATION OF PLANTS AND LANDSCAPING INTENDED TO REDUCE WATER USAGE (H 3058) — Would create a 25% personal income tax credit of up to $250, on the purchase and installation of plants and landscaping items intended to reduce water usage including drought resistant plants that last for more than one year; kits or devices specifically designed for generating compost; rainwater recovery and storage devices where they are used for watering plants; and underground drip irrigation systems.
“The drought Massachusetts experienced this summer shows that we must prepare for greater weather extremes,” said sponsor Rep. Paul Schmid (D-Westport) who plans to refile the bill next year. “We should be getting ahead of possible water shortages now.”
FOUR MORE TAX REDUCTION BILLS — Sen. Patrick O’Connor (R-Weymouth) filed several bills that were shipped off to a study committee including:
S 1946: Allows a credit for child care costs up to $3,000 per year. The child care provider must be licensed in Massachusetts and the child must be a dependent of the taxpayer.
S 1947: Employers who hire veterans within 90 days of their honorable discharge receive a credit of $500 per month for 12 months for each full-time veteran, and $750 per month for 12 months for each disabled veteran. Each business gets $50,000 for these credits per business calendar year.
S 1948: Gives a $2,500 tax credit for a taxpayer who pays for more than half of the expenses of a relative over age 70 or of someone disabled by Alzheimer’s/dementia. The relative must have lived with the taxpayer for at least 6 months.
S.1950: Gives a credit of up to 20% to a maximum of $5,000 toward the cost of tuition for higher education. The credit will be allowed for the taxable year in which the tuition was billed.
“These pieces of legislation would have made a difference for those who need it the most right now in our commonwealth — our small businesses, those caring for elderly relatives, parents, veterans and students,” said O’Connor. “Although I am disappointed that these bills did not move further along in the legislative process this past session, I have hope that they can move forward next session upon re-filing.”
“The ability to grant pardons is a very serious responsibility, but through careful consideration and review, I believe these individuals are worthy candidates for a pardon. All of these individuals have shown a commitment to their communities and rehabilitation since their convictions. However, the charges are related to decades-old convictions that continue to have an impact on their lives. I look forward to the Governor’s Council’s review of these recommendations.”
Gov. Charlie Baker upon pardoning these men for their crimes: Kenneth Dunn (1971 larceny), Steven Joanis (1990 assault and battery by means of a dangerous weapon, Stephen Polignone (1980 larceny and altering a motor vehicle license/registration) and Michael Picanso (1986 trespassing, larceny and wanton destruction of property). These pardons are the first four in Baker’s eight years as governor.
“The solution to the problem of unfunded mandates is to prioritize funding of them. It is a simple solution, but it may require some hard choices.”
Auditor Suzanne Bump on a new report that identifies a $1.26 billion shortfall between actual municipal spending on existing programs that are mandated by the state and actual funding of the programs by the state.
“For a long time, folks have been made to feel helpless and are made to feel like they don’t have a voice or their voice isn’t being listened to. So we want to ensure that the neighbors and the residents living down the road from the landfill or the powerplant that is harming their children, that they are the ones who get to decide what happens.”
MireilleBejjani, co-executive director of a new environmental health and justice organization, Slingshot, with a goal to hold polluters responsible.
“Anyone in Massachusetts who wants to expunge their record appropriately can do so now under existing state law. Pardon process is a complicated one. It doesn’t happen overnight. I think at this point the fastest, easiest and quickest way for somebody to deal with an issue around simple possession would be to just pursue the expungement process. It’s why it’s there.”
Gov. Charlie Baker supporting expunging criminal records for simple marijuana possession rather than pardons like President Joe Biden recently recommended.