On March 30th, the Special Joint Committee on Initiative Petitions heard testimony on H.5006 An Act Relative to Limiting State Tax Collection Growth and Returning Surpluses to Taxpayers. MTF was asked to provide expert testimony on the proposal, which would change the calculation of the state’s limit on tax collection growth (established in Chapter 62F of the Massachusetts General Laws) and make refunds of excess revenue collections to taxpayers more likely. This bulletin explains what the ballot question proposes and then provides an overview of:
The recent history of the 62F cap;
The impact of the question on the maximum tax collections cap;
The impact of the question on residents and the state economy; and
The impact of the question on public finances.
This Bulletin is intended to provide information and context essential for policymakers and the public.
