The Massachusetts House overwhelmingly authorised a $654 million tax reduction bundle for the 2024 fiscal yr Thursday.
The invoice, which handed on a 150-3 vote, is aimed toward serving to seniors, renters, companies and wealthier owners whereas rewriting the legislation that despatched about $3 billion again to taxpayers final yr, in accordance with Massachusetts House Speaker Ronald Mariano.
The measure, which might lead to $1.1 billion in financial savings for taxpayers within the 2026 fiscal yr, would elevate the state’s property tax threshold from $1 million to $2 million.
Massachusetts is certainly one of simply 12 states with an property tax. Democratic Gov. Maura Healey, who launched her personal $742 million tax reduction bundle in February, would remove the tax for estates valued as much as $3 million.
The House proposal would additionally make modifications to the 1986 legislation designed to restrict state tax income progress and return any extra to taxpayers. The legislation triggered almost $3 billion in refunds final yr.
The credit score is utilized to the private revenue tax legal responsibility on a proportional foundation, leading to greater credit for individuals who paid extra in taxes. The invoice would credit score an equal quantity per taxpayer.
The House proposal would additionally mix the kid care bills credit score with the dependent member of family credit score to create one refundable $600 credit score per dependent; double the tax credit score for eligible seniors who personal or lease property from $1,200 to $2,400; improve the rental deduction cap from $3,000 to $4,000; and increase the earned revenue tax credit score from 30% to 40% of the federal credit score.
The bundle would additionally decrease the short-term capital beneficial properties tax charge from 12% to five% over two years and bulk up the state’s stabilization fund, additionally referred to as the wet day fund.
The invoice now heads to the Massachusetts Senate.
Source: www.bostonherald.com”