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Massachusetts Budget and Policy Center | 15 Court Square | Suite 700 | Boston | MA | 02108
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Showing posts with label tax. Show all posts
Showing posts with label tax. Show all posts
Tuesday, September 24, 2013
MassBudget: After the Tech Tax Repeal: Remembering the Big Picture
Wednesday, August 8, 2012
Business Tax Breaks in Massachusetts
Tax breaks are a form of spending. Money that the state spends on tax breaks is money that it can't spend on education, infrastructure, or other forms of economic development.
Our new report, Business Tax Breaks in Massachusetts, describes the various types of business tax breaks in Massachusetts and shows how much the state spends on each. It focuses most directly on what we call special business tax breaks, meaning those tax breaks which: 1) apply to businesses, and 2) have as their most basic rationale the effort to bolster economic development.*
We find that:
To accompany this report, we are also releasing a two-page Factsheet which describes the major findings.
* Other kinds of business tax breaks include those designed to minimize double-taxation and those which mirror the federal tax code.
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Saturday, March 31, 2012
Marijuana tax stamps still on sale even though law up in smoke
An oddity creates an opportunity for collectors!
Sent to you by Steve Sherlock via Google Reader:
via Commonwealth Conversations: Revenue by Robert Bliss on 3/30/12
A Massachusetts newspaper reported this week that two men arrested for possession of five pounds of marijuana had also run afoul of state tax law.
The story went on to quote from the law ... which was all well and good except the law was thrown out in a Supreme Judicial Court case settled in 1998, Commissioner of Revenue v. Mullins. In ruling against the Commonwealth, the SJC said the law was aimed at drug dealers and amounted to a double jeopardy penalty since it imposed a high rate of taxation, had a deterrent purpose, was clearly conditioned on the commission of a crime, and bore no logical relationship to legal possession.
Some background is in order. in 1993, the Massachusetts Legislature passed the Massachusetts Controlled Substance Tax which authorized DOR to print tax stamps for controlled substances such as marijuana. Even though the SJC ruling made the law moot, it has not been repealed. The law set a tax rate of $3.50 per gram or $99.20 per ounce of controlled substance.
After the SJC decision, DOR kept the stamps, which are purple and about the size of a postage stamp.
Indeed, since the law first took effect, DOR has earned about $2,500 from the stamps which sell for $3.50 each, with most of those sales registered after the SJC decision.
Who is buying a stamp that has no valid legal purpose, given the SJC decision? Stamp collectors. Some purchasers sell the stamps as collectibles on web-based auction sales sites for as much as $20.
If you'd like to order your collectible, gag gift or stocking stuffer -- and folks, supplies are running low, so act now since DOR will not re-order the useless stamps once they are gone -- you can obtain them by downloading DOR form CST-1, Marijuana and Controlled Substances Stamp order form and mailing it to DOR at the address listed on the form.
We can't make this stuff up.
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Tuesday, December 20, 2011
Heads on beds puts dollars in city and town treasuries
Sent to you by Steve Sherlock via Google Reader:
via Commonwealth Conversations: Revenue by Robert Bliss on 12/19/11
City and Town, the twice-monthly publication of the Division of Local Services, has just published its first in-depth review of the local option room occupancy tax since it was raised from 4 percent to 6 percent in the summer of 2009.
The article comes with a link that shows the amount of local revenue generated from this tax in each of the 177 cities and towns (50 percent of those in the Commonwealth) that has adopted the optional room occupancy tax, and the additional amounts raised by the 93 cities and towns that have elected to tax at a rate higher than 4 percent.
The local option tax generated a record $130.4 million in FY11 for cities and towns, and does not appear to have weakened demand for rental rooms in the Commonwealth, given the data presented in the article.
The article notes that 124 of the Commonwealth's 352 cities and towns, or 35 percent, either have no rental rooms or fewer than three businesses generating room rental income.
That leaves about 15 percent of the state's cities and towns that have foregone the opportunity to generate tax revenue from the local option room occupancy tax.
The article comes with a link that shows the amount of local revenue generated from this tax in each of the 177 cities and towns (50 percent of those in the Commonwealth) that has adopted the optional room occupancy tax, and the additional amounts raised by the 93 cities and towns that have elected to tax at a rate higher than 4 percent.
The local option tax generated a record $130.4 million in FY11 for cities and towns, and does not appear to have weakened demand for rental rooms in the Commonwealth, given the data presented in the article.
The article notes that 124 of the Commonwealth's 352 cities and towns, or 35 percent, either have no rental rooms or fewer than three businesses generating room rental income.
That leaves about 15 percent of the state's cities and towns that have foregone the opportunity to generate tax revenue from the local option room occupancy tax.
Things you can do from here:
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Tuesday, November 1, 2011
DOR proposes to expand tax practitioner electronic filing
Sent to you by Steve Sherlock via Google Reader:
via Commonwealth Conversations: Revenue by Robert Bliss on 10/31/11
The Department of Revenue has issued a draft Technical Information Release that would require income tax preparers who reasonably expect to file more than 10 returns in a calendar year to file those returns electronically.
The existing rule established in 2004 required tax preparers filing 100 or more returns annually to file electronically. Before that, the threshold was 200 returns.
The new, lower threshold of more than 10 is proposed to take effect January 1, 2012, and would parallel an Internal Revenue Service electronic filing threshold taking place on that date.
While it is hard to say precisely how many additional tax returns would be filed electronically under this new rule, it is safe to say that it would insure continued growth in electronic filing, which increased by 10 percent in tax year 2010 over tax year 2009.
Just among tax practitioner, the number of returns filed electronically increased by 153,983, going from 1.668 million in 2009 to 1.822 million in 2010.
Overall, of 3.424 million tax returns filed in 2010, just 225,672 were paper returns imaged and keyed, a decrease of 56,658 from the previous year. Another 542,487 paper returns came in with 2D barcodes (down 129,063 from the previous year); these are paper returns that are read electronically due to the barcode.
The new rule is likely to reduce the number of 2D barcode returns, virtually all of which are filed by tax practioners, in half.
The existing rule established in 2004 required tax preparers filing 100 or more returns annually to file electronically. Before that, the threshold was 200 returns.
The new, lower threshold of more than 10 is proposed to take effect January 1, 2012, and would parallel an Internal Revenue Service electronic filing threshold taking place on that date.
While it is hard to say precisely how many additional tax returns would be filed electronically under this new rule, it is safe to say that it would insure continued growth in electronic filing, which increased by 10 percent in tax year 2010 over tax year 2009.
Just among tax practitioner, the number of returns filed electronically increased by 153,983, going from 1.668 million in 2009 to 1.822 million in 2010.
Overall, of 3.424 million tax returns filed in 2010, just 225,672 were paper returns imaged and keyed, a decrease of 56,658 from the previous year. Another 542,487 paper returns came in with 2D barcodes (down 129,063 from the previous year); these are paper returns that are read electronically due to the barcode.
The new rule is likely to reduce the number of 2D barcode returns, virtually all of which are filed by tax practioners, in half.
Things you can do from here:
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Friday, July 22, 2011
In the Globe: local meals tax
In case you missed it, the Boston Globe West section on Thursday ran an article on the local meal tax option. Franklin obtained 347,000 revenue from this during the past fiscal year. With continued growth in restaurants, this can be a continuing source of revenue. Not enough to solve our systemic problems, but substantial none the less.
http://www.boston.com/news/local/articles/2011/07/21/some_communities_find_meals_tax_a_boon/?rss_id=Boston+Globe+--+Globe+West
Related post:
The State announced the totals for local meal tax revenues earlier in July
http://franklinmatters.blogspot.com/2011/07/meals-tax-delivers-705-million-to-146.html
http://www.boston.com/news/local/articles/2011/07/21/some_communities_find_meals_tax_a_boon/?rss_id=Boston+Globe+--+Globe+West
Related post:
The State announced the totals for local meal tax revenues earlier in July
http://franklinmatters.blogspot.com/2011/07/meals-tax-delivers-705-million-to-146.html
Wednesday, July 6, 2011
Meals tax delivers $70.5 million to 146 cities and towns
Sent to you by Steve Sherlock via Google Reader:
via Commonwealth Conversations: Revenue by Robert Bliss on 7/6/11
As of today, 146 communities (about 42 percent of the Commonwealth's 351 cities and towns) have collected $70.5 million over the past two fiscal years from the .75 percent local option meals tax.
The Division of Local Services Municipal Data Bank has the complete list of communities that have adopted the local option tax, and the amount of revenue generated in FY 10 ($27.13 million) and FY11 ($43.33 million). This list appears on the Data Bank Local Options page; just scroll down about halfway until the bullet headed Local Option Meals Excise.
Not surprisingly, Boston has collected the most, about $30 million. The tax has delivered about $5.1 million to Cambridge, $3.2 million to Worcester and $2.3 million to Springfield. But other communities have seen the benefit as well. Natick and Framingham, which share the busy Route 9 corridor, have collected $2.7 million and Northampton, a Pioneer Valley hub of dining and entertainment, has collected $939,000. Blandford, a small town of 1,233 near the New York border, collected $52,000, mostly, one would assume, from the two MassPike service areas in the town.
The state meals tax is 6.25 percent; with the local option, the meals tax rises to 7 percent. Thus a $40 restaurant tab generates $2.80 in meals tax, of which 30-cents goes to a city or town that has enacted the local option. These small amounts add up to a sizable revenue source.
The state share of the meals tax as of May 31 had generated $740 million, up $55 million or 8.1 percent from the same period a year ago, which indicates that the increasing number of communities that have adopted the local option meals tax has not slowed down the pace of taxpayers going out to eat.
The Division of Local Services Municipal Data Bank has the complete list of communities that have adopted the local option tax, and the amount of revenue generated in FY 10 ($27.13 million) and FY11 ($43.33 million). This list appears on the Data Bank Local Options page; just scroll down about halfway until the bullet headed Local Option Meals Excise.
Not surprisingly, Boston has collected the most, about $30 million. The tax has delivered about $5.1 million to Cambridge, $3.2 million to Worcester and $2.3 million to Springfield. But other communities have seen the benefit as well. Natick and Framingham, which share the busy Route 9 corridor, have collected $2.7 million and Northampton, a Pioneer Valley hub of dining and entertainment, has collected $939,000. Blandford, a small town of 1,233 near the New York border, collected $52,000, mostly, one would assume, from the two MassPike service areas in the town.
The state meals tax is 6.25 percent; with the local option, the meals tax rises to 7 percent. Thus a $40 restaurant tab generates $2.80 in meals tax, of which 30-cents goes to a city or town that has enacted the local option. These small amounts add up to a sizable revenue source.
The state share of the meals tax as of May 31 had generated $740 million, up $55 million or 8.1 percent from the same period a year ago, which indicates that the increasing number of communities that have adopted the local option meals tax has not slowed down the pace of taxpayers going out to eat.
Things you can do from here:
- Subscribe to Commonwealth Conversations: Revenue using Google Reader
- Get started using Google Reader to easily keep up with all your favorite sites
Follow the link in the second paragraph and you'll end up on the DOR website. Scroll down to the meal tax section and you'll see that Franklin gained $239,644 for FY 10 and $347,217 for the FY 11 that just ended June 30th.
A small increase but a good one!
Friday, May 6, 2011
Gas tax collections holding steady; rate of increase slowing
Sent to you by Steve Sherlock via Google Reader:
via Commonwealth Conversations: Revenue by Robert Bliss on 5/5/11
Two months ago, DOR published a blog post noting that price spikes in gasoline had not caused a decline in consumption. That remains true today after reviewing gasoline excise tax collections for March and April.
The two months' combined collection is $96.8 million, which is $200,000 more than the same two months a year ago. Through the end of April, year-to-date gas tax collection is at $493 million. up $6.4 million from a year ago.
It is fair to say, however, that the rate of increase in gas consumption, as measured by gasoline tax collection, has slowed down. In the first six months of FY11, collections were up $5 million. In the ensuing four months (January-April of 2011) which correspond to the period in which gasoline prices have gone up, the increase over a year ago is just a little over $1 million.
Those interested in pouring over these numbers should visit DOR's Blue Book, published monthly, to review individual month and year-to-date collections of a variety of tax collections and other revenue sources. (The April edition should be up in a few days.)
This is probably a good time to review how gas tax revenues are used. As a result of reform of the state's transportation system in 2009, gasoline excise tax revenue goes into the Commonwealth Transportation Fund, along with registry fees and .385 percent of the sales tax. The fund is used to pay debt service associated with highway maintenance and construction projects and provides funding for the operation of the Massachusetts Department of Transportation (MassDOT).
Revenue from the gasoline tax, which is 21-cents per gallon, goes almost entirely (99.85 percent) into the Commonwealth Transportation Fund. The balance of fifteen-hundreths of one percent is credited to the Inland Fish and Game Fund.
One of the best explainers of the new MassDOT and its funding sources appeared in Gov. Patrick's FY11 budget proposal.
The state gasoline tax of 21-cents per gallon is not the only tax paid at the pump. The state also collects 2.5-cents per gallon to help fund the cleanup of underground storage tanks; this money goes into the state's General Fund from which the Legislature makes appropriations to pay for cleanups. And the federal government collects a federal gas tax of 18.4-cents per gallon.
The Tax Foundation publishes annually a ranking of gasoline taxes by state. Massachusetts is ranked 27th from the top out of the 50 states.
The two months' combined collection is $96.8 million, which is $200,000 more than the same two months a year ago. Through the end of April, year-to-date gas tax collection is at $493 million. up $6.4 million from a year ago.
It is fair to say, however, that the rate of increase in gas consumption, as measured by gasoline tax collection, has slowed down. In the first six months of FY11, collections were up $5 million. In the ensuing four months (January-April of 2011) which correspond to the period in which gasoline prices have gone up, the increase over a year ago is just a little over $1 million.
Those interested in pouring over these numbers should visit DOR's Blue Book, published monthly, to review individual month and year-to-date collections of a variety of tax collections and other revenue sources. (The April edition should be up in a few days.)
This is probably a good time to review how gas tax revenues are used. As a result of reform of the state's transportation system in 2009, gasoline excise tax revenue goes into the Commonwealth Transportation Fund, along with registry fees and .385 percent of the sales tax. The fund is used to pay debt service associated with highway maintenance and construction projects and provides funding for the operation of the Massachusetts Department of Transportation (MassDOT).
Revenue from the gasoline tax, which is 21-cents per gallon, goes almost entirely (99.85 percent) into the Commonwealth Transportation Fund. The balance of fifteen-hundreths of one percent is credited to the Inland Fish and Game Fund.
One of the best explainers of the new MassDOT and its funding sources appeared in Gov. Patrick's FY11 budget proposal.
The state gasoline tax of 21-cents per gallon is not the only tax paid at the pump. The state also collects 2.5-cents per gallon to help fund the cleanup of underground storage tanks; this money goes into the state's General Fund from which the Legislature makes appropriations to pay for cleanups. And the federal government collects a federal gas tax of 18.4-cents per gallon.
The Tax Foundation publishes annually a ranking of gasoline taxes by state. Massachusetts is ranked 27th from the top out of the 50 states.
Things you can do from here:
- Subscribe to Commonwealth Conversations: Revenue using Google Reader
- Get started using Google Reader to easily keep up with all your favorite sites
Thursday, December 3, 2009
In the News - check your mail carefully
In October, Dacey sent letters to 800 delinquent bill payers, warning a lien may be filed on their property. He said the lien will be split evenly in the February and May bills, the third and fourth quarters, respectively.Read more about this in the Milford Daily News here:
He said people may wrongly assume the mortgage company and banks have paid their utility bills.
"I have a feeling a lot of people are getting these letters and think, 'I don't have to worry about this, the mortgage company is taking care of it.' It's wrong to assume that," he said.
Franklin official: Pay your taxes or risk lien
Sunday, August 23, 2009
Sunday, July 26, 2009
In the News - Patricia Ridge, beating the increase, better health
1 - There is an article about Patricia Ridge, one of the custodians at the Kennedy School who was recently diagnosed with pancreatic cancer:
2 - There is an article about local efforts to generate business in advance of the tax increase effective Aug 1.
3 - While dodgeball is not the answer to better health, running might be.
"She was an integral part of the Kennedy school community, and her sickness is sad and unfortunate," said Franklin Superintendent Maureen Sabolinski. "She's beloved by both the kids and the school."Read the full article in the Milford Daily News here
2 - There is an article about local efforts to generate business in advance of the tax increase effective Aug 1.
At Planet Chrysler Jeep on Rte. 140 in Franklin, July has been a "very busy" month, given the government program and rush to beat the tax increase, said salesman Mike Shruhan.United Regional Chamber of Commerce President Jack Lank is also quoted in the full article in the Milford Daily News here
3 - While dodgeball is not the answer to better health, running might be.
Cohen's foundation has been battling the issue for five years, with an earlier series of eye-catching billboards and continued grants. In Franklin, the Hockomock Area YMCA is using foundation money to develop a response that involves the whole community, not just its schools.Oddly, they don't discuss running as an option. I guess that is too much of a stretch. Better to get someone walking regularly first. Read the full article in the Milford Daily News here.
Thursday, January 15, 2009
"everything that's simple we've already done"
Read the full article in the Boston Globe West section here
Last spring in Franklin, residents voted against a $2.8 million override, after approving a $2.7 million tax increase the year before. This year, a financial plan committee is preparing a three-year projection to better prepare for the town's fiscal needs. An initial draft should be available by early next month, according to the Town Council's vice chairwoman, Deborah Bartlett.Bartlett wouldn't rule out the possibility of an override request, saying, "I don't think we're thinking that far ahead yet." However, "it's hard to know, with everything so volatile at this point," she said. "I think people are scared . . . and we don't know how they will feel about committing to more money than they're currently committing."
It's clear that revenues in Franklin will once again fall short of expenses, Bartlett said, and "without more money, we're not going to be able to provide the same level of service as today."
Officials are searching for ways to consolidate services and save money, but "everything that's simple we've already done," she said.
Thursday, November 20, 2008
"they would favor a single tax rate"
GHS
FRANKLIN —
Town Council last night unanimously voted to put $600,000 of the town's $2.3 million recently certified free cash into reserves.
Before approving the appropriation, Councilor Tom Doak observed that the move seemed to be "rushing to take the money off the table."
"I'm just trying to be conservative given what I see coming down the road," said Town Administrator Jeffrey D. Nutting, who proposed the move.
The council's policy is to keep at least $5 million in the town's stabilization account, which had $4.1 million in it prior to last night's appropriations, Nutting said.
The council also transferred $300,000 from hotel tax revenue into the stabilization, putting the total back at $5 million.
The $300,000 can be used in the case of a mid-year reduction in fiscal 2009 local aid, to pay for unemployment costs, or to pay off the library repairs, for instance, Nutting said.
Read the full article in the Milford Daily News here
Thursday, July 31, 2008
"it's an investment in our town"
GHS
FRANKLIN —
Property owners could be charged an annual fee of about $40 under a stormwater management plan proposed by the Department of Public Works.
DPW Director Brutus Cantoreggi said the fee would raise about $500,000, which could be used to pay for infrastructure repairs and retrofits, additional catch-basin cleaning, street sweeping and maintenance of stormwater facilities to comply with federal mandates.
Establishing a stormwater utility would provide a stable source of dedicated funding, assist with making long-term improvements, and give a more equitable apportionment from different land uses than the tax base does, he said.
Another goal in the stormwater management plan is to keep water in Franklin, rather than letting it flow into the Charles River, Cantoreggi said.
However, there is a hitch to the proposed plan: It may not be legal.
Read the full article in the Milford Daily News here
Listen to my recap of the 3 things you should know from the Town Council meeting 7/23/08
Thursday, April 24, 2008
In the News - Milford tax break for seniors expanding?
GHS
MILFORD —
Penny-pinching senior citizens may be able to breathe easier, if Town Meeting votes next month to offer elders a bigger tax break.
An "aye" for warrant Article 24 would increase the maximum amount the town can reduce a qualifying senior citizen's local property tax bills to $650 a year, up $150 from the current maximum abatement of $500.
It would also lower the age of eligibility for the special tax program from 70 to 68.
"We like to think it's an avenue to help some senior citizens and keep them in their homes," said Town Administrator Louis Celozzi. "Property taxes increase every year and these folks are on fixed income."
The town's senior citizens ad-hoc committee, led by selectmen Chairman Dino DeBartolomeis, sent the article to selectmen, who are sponsoring it.
Annual Town Meeting will take up the issue on May 19.
Read the full article in the Milford Daily News here.
How does this compare to what Franklin has?
How does this compare to what was just passed in the House?
Thursday, April 17, 2008
In the News - let voters decide, luxury tax
GHS
FRANKLIN —
Taxpayers will have an opportunity to vote for a tax override early this summer, the majority of the Town Council decided last night.
Every seat in the Town Council chambers was filled, and about 20 more people stood at the back of the room at last night's meeting, all in favor of an override.
No one but Councilor Judith Pond Pfeffer spoke against the permanent tax hike, which would be used to prevent about 45 layoffs in schools, program cuts, and possibly boost other town departments' budgets.
School Committee Chairman Jeffrey Roy, as well as a handful of residents, including Finance Committee members, Town Council Chairman Christopher Feeley, Vice Chairwoman Deborah A. Bartlett, and members Stephen Whalen, Shannon Zollo, Joseph McGann and Thomas S. Doak all spoke in favor of putting an override question on the ballot.
Councilor Robert Vallee, who had gone on record as being opposed to an override, passed at the chance to voice his opinion last night.
Finance Committee Chairman Jim Roche, who spoke as a taxpayer and father, urged the council to let the town vote.
"This is more than just a school problem - it's a townwide problem," said Roche.
Read the full article in the Milford Daily News here.
---------------------------
The MetroWest Daily News
My first thought was to drop a dime to Susan Wornick.
I know my rights. I know the law. Clearly, the sporting goods store was no authority on clothing tax.
But after a teenaged manager took the $1 off my bill, I calmed down enough to see involving Channel 5's consumer guru wasn't the way to go.
Instead, we need to make the state tax code even more confusing.
Conventional wisdom on Beacon Hill has been to balance the budget on the backs of the monkeys on Massachusetts residents' backs.
Got a vice? We'll tax it. Then we'll tax it some more. And when that isn't enough, we'll just push Lottery tickets a little harder.
Look, we don't want you to gamble if you're an addict. No, seriously. See, we put all sorts of disclaimers on Keno broadcasts and around convenience stores that sell scratch tickets. Here's the number for Gamblers Anonymous. Call if you think you have a problem. Just wait until after you buy another Megabucks ticket before you call, OK?
Casinos may be off the table for the moment, at least casinos of the state-run variety, but an extra tax on smokers is all but a done deal.
Dirty, rotten smokers. Make them pay for miscalculations in what it takes to run a state.
There was some talk about upping taxes on wine, but so far that hasn't gotten much traction. It'll likely be revisited when the number of people who buy cigarettes in Massachusetts dwindles to financially unacceptable levels.
Meanwhile, there's a sensible solution no one's talking about.
Read the remainder of the article to see the sensible solution in the Milford Daily News
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