MassBudget: Massachusetts taxes on par with U.S. average

Read our new report

MassBudget    Information.    Participation.  Massachusetts Budget and Policy Center    Democracy. November 20, 2018 Massachusetts taxes on par with U.S. average Education, transportation, public safety, and other essential services are possible because of state and local taxes. The Massachusetts Budget and Policy Center (MassBudget) notes, in a pair of new briefs, that Massachusetts' level of combined state and local taxes are about average compared with the rest of the United States in Fiscal Year 2016, the year for which most recent data are available. Since 1977, Massachusetts has cut taxes more than most other states - by 26.2 percent. This directly affects the amount of revenue that the Commonwealth and local communities are able to collect and, therefore, the services they can provide. Read the reports, MA Taxes on Par with U.S. Average in FY 2016 and How Has the Level of Taxes in Massachusetts Changed Compared to Other States? The Massachusetts Budget and Policy Center (MassBudget) produces policy research, analysis, and data-driven recommendations focused on improving the lives of low- and middle-income children and adults, strengthening our state's economy, and enhancing the quality of life in Massachusetts. MASSACHUSETTS BUDGET AND POLICY CENTER 15 COURT SQUARE, SUITE 700 BOSTON, MA 02108

Massachusetts Budget and Policy Center, 15 Court Square, Suite 700, Boston, MA 02108 Sent by mrivera@massbudget.org in collaboration with Try it free today

Fiscal Year 2019 First Quarter Real Estate and Personal Property Tax Bills

Fiscal Year 2019 First Quarter Real Estate and Personal Property Tax Bills will be mailed out on Friday, June 29, 2018. The due date for these bills is, August 1, 2018.

You can pay online at http://www.franklinma.gov/home/pages/online-payments


Reminders:

• Payments received after the due date are charged 14% interest.
• If you are mailing in your payment, please be sure to include the remittance copy with your check.
• If you choose to use your Online Banking to pay your bills, please remember to reference the bill number(s) you are paying.

Fiscal Year 2019 First Quarter Real Estate and Personal Property Tax Bills

IR-2017-182: 10 Million Taxpayers Face an Estimated Tax Penalty Each Year; Act Now to Reduce or Avoid it for 2017; New Web Page Can Help

IRS Newswire October 31, 2017

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Issue Number:    IR-2017-182 Inside This Issue 10 Million Taxpayers Face an Estimated Tax Penalty Each Year; Act Now to Reduce or Avoid it for 2017; New Web Page Can Help WASHINGTON — The Internal Revenue Service today reminded taxpayers assessed an estimated tax penalty for tax year 2016 that they still have time to take steps to reduce or eliminate the penalty for 2017 and future years. To help raise awareness about the growing number of estimated tax penalties, the IRS has launched a new "Pay as You Go, So You Don't Owe" web page. The IRS.gov page has tips and resources designed to help taxpayers, including those involved in the sharing economy, better understand tax withholding, making estimated tax payments and avoiding an unexpected penalty. Each year, about 10 million taxpayers are assessed the estimated tax penalty. The average penalty was about $130 in 2015, but the IRS has seen the number of taxpayers assessed this penalty increase in recent years. The number jumped about 40 percent from 7.2 million in 2010 to 10 million in 2015. Most of those affected taxpayers can easily reduce or, in some cases, eliminate the penalty by increasing their withholding or adjusting estimated tax payments for the rest of the year. With a little planning, taxpayers can avoid the penalty altogether. By law, the estimated tax penalty usually applies when a taxpayer pays too little of their total tax during the year. The penalty is calculated based on the interest rate charged by the IRS on unpaid tax. How to Avoid the Penalty For most people, avoiding the penalty means ensuring that at least 90 percent of their total tax liability is paid in during the year, either through income-tax withholding or by making quarterly estimated tax payments. Keep in mind exceptions to the penalty and special rules apply to some groups of taxpayers, such as farmers, fishers, casualty and disaster victims, those who recently became disabled, recent retirees, those who base their payments on last year's tax and those who receive income unevenly during the year. For details, see Form 2210 and its instructions. Taxpayers may want to consider increasing their tax withholding in 2017, especially if they had a large balance due when they filed their 2016 return earlier this year. Employees can do this by filling out a new Form W-4 and giving it to their employer. Similarly, recipients of pensions and annuities can make this change by filling out Form W-4P  and giving it to their payer. In either case, taxpayers can typically increase their withholding by claiming fewer allowances on their withholding form. If that's not enough, they can also ask employers or payers to withhold an additional flat dollar amount each pay period. For help determining the right amount to withhold, check out the Withholding Calculator on IRS.gov. Taxpayers who receive Social Security benefits, unemployment compensation and certain other government payments can also choose to have federal tax taken out by filling out Form W-4V and giving it to their payer. But some restrictions apply. See the form and its instructions for details. For taxpayers whose income is normally not subject to withholding, starting or increasing withholding is not an option. Instead, they can avoid the estimated tax penalty by making quarterly estimated tax payments to the IRS. In general, this includes investment income —such as interest, dividends, rents, royalties and capital gains —alimony and self-employment income. Those involved in the sharing economy may also need to make these payments. Tips to Make Estimated Tax Payments Estimated tax payments are normally due on April 15, June 15, Sept. 15 and Jan. 15 of the following year. Any time one of these deadlines falls on a weekend or holiday, taxpayers have until the next business day to make the payment. Thus, the next estimated tax payment for the fourth quarter of 2017 is due Tuesday, Jan. 16, 2018. The fastest and easiest way to make estimated tax payments is to do so electronically using IRS Direct Pay  or the Treasury Department's Electronic Federal Tax Payment System (EFTPS). For information on other payment options, visit IRS.gov/payments. Taxpayers may also use Form 1040-ES to figure these payments. IRS Publication 505, Tax Withholding and Estimated Tax, is a resource on withholding and estimated payments. Back to Top   Thank you for subscribing to the IRS Newswire, an IRS e-mail service. If you know someone who might want to subscribe to this mailing list, please forward this message to them so they can subscribe. This message was distributed automatically from the mailing list IRS Newswire. Please Do Not Reply To This Message.

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MassBudget: Special Business Tax Break Spending Continues to Rise

MassBudget    Information.    Participation.  Massachusetts Budget and Policy Center    Democracy. Special Business Tax Break Spending Continues to Rise The cost of special business tax breaks continues to grow. Today we're releasing an update to last year's report, "The Growing Cost of Special Business Tax Break Spending." Based on new and updated estimates from the administration, the paper shows that the Commonwealth's annual spending on business tax breaks aimed at supporting economic development in Massachusetts continues to rise. These costs are expected to exceed $1 billion for the first time this 2017 fiscal year, and the Department of Revenue projects them to growth further in Fiscal Year 2018. Although often not subject to the regular and close scrutiny given to on-budget programs, spending on these tax breaks is no different in its bottom-line effect than direct spending through the state budget; each limits the resources available for other state priorities. Adjusting for inflation, these costs have increased from $370 million in Fiscal Year 1996 to $1.028 billion projected in Fiscal Year 2018. Last week the Pew Charitable Trusts released a national report ranking the fifty states on how well they evaluate their spending on economic development tax incentives. Massachusetts was ranked in the lowest tier, along with 22 other "trailing" states. The report noted that, "Massachusetts is trailing other states because it has not adopted a plan for regular evaluation of tax incentives." You can read MassBudget's updated analysis of special business tax break spending here (LINK). The Massachusetts Budget and Policy Center (MassBudget) produces policy research, analysis, and data-driven recommendations focused on improving the lives of low- and middle-income children and adults, strengthening our state's economy, and enhancing the quality of life in Massachusetts. MASSACHUSETTS BUDGET AND POLICY CENTER 15 COURT SQUARE, SUITE 700 BOSTON, MA 02108

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FYI - The IRS May Start Calling You about Debt, the key word is 'debt'

Catching up to share this item from MA Consumer Affairs which was posted in April:

"For years, we (along with other consumer protection and law enforcement groups) have told consumers that the IRS will never randomly call you and tell you that you owe money. In fact, there are established guidelines the IRS follows for collection of unpaid taxes and a phone call will never be the first time you’re hearing from them. 

However, a recent change to how the IRS collects unpaid taxes involves these very types of calls and it’s important that consumers be up-to-date on the topic in order to know the difference between a legitimate IRS call and the common IRS scam call."

• If you do not have any federal tax debt you will not be a part of this program or receive a call from the IRS. Additionally, this program targets those who have tax debt going back several years and have heard from the IRS multiple times. If you are uncertain whether you owe taxes, you can look-up your account by using irs.gov/balancedue

Continue reading the update from MA Consumer Affairs
http://blog.mass.gov/consumer/massconsumer/the-irs-may-start-calling-you-about-debt/

The IRS May Start Calling You about Debt

MassBudget: Budget Explainer: Transportation

Transportation funding in one chart, plus two fact sheets comparing MA taxes to other states

MassBudget    Information.    Participation.  Massachusetts Budget and Policy Center    Democracy. Budget Explainer: Transportation  Better transportation infrastructure makes the economy more productive, connects people to jobs, and reduces the amount of time people waste in traffic. Where do the resources come from to operate our transportation system, and where is the money invested? The flow chart below displays state revenues and spending, with the width of the arrows representing the dollar amounts. Read the fact sheet with a larger chart. MassBudget has also recently updated two fact sheets that compare Massachusetts taxes to other states:  Massachusetts Ranks near Middle for Taxes in FY 2014 compares state and local taxes in the Commonwealth to other states, and finds we're in the middle of the pack. Where Does the Taxachusetts Label Come From? describes how the state's old label as a high-tax state has more to do with history than reality. The Massachusetts Budget and Policy Center (MassBudget) produces policy research, analysis, and data-driven recommendations focused on improving the lives of low- and middle-income children and adults, strengthening our state's economy, and enhancing the quality of life in Massachusetts. MASSACHUSETTS BUDGET AND POLICY CENTER 15 COURT SQUARE, SUITE 700 BOSTON, MA 02108

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MassBudget: Cost of special business tax breaks nearly tripled since 1996

MassBudget report examines growth of special business tax breaks

MassBudget    Information.    Participation.  Massachusetts Budget and Policy Center    Democracy. The cost of special business tax breaks has nearly tripled since 1996  A new study by the Massachusetts Budget and Policy Center (MassBudget) shows that the cost to the state from special business tax break spending has nearly tripled, even after adjusting for inflation, from $370 million in 1996 to over $1 billion anticipated in this fiscal year. The Commonwealth forgoes a large amount of potential revenue each year through spending on business tax breaks aimed at supporting economic development in Massachusetts. Although less often a focus of budget debates, spending on these tax breaks is no different in its bottom-line effect than direct spending through the state budget: law makers must offset each dollar from these special breaks with reductions to other public programs or increases to other forms of taxes. The MassBudget report finds that the cost of special business tax breaks began to climb rapidly starting 20 years ago with incentives for the mutual fund industry, manufacturers, and others including the film industry and life sciences companies. And yet, despite the findings of a 2012 report from a state special commission that called for studying their effectiveness, most state business tax breaks have not faced a thorough examination. Back in 2011, the Massachusetts Legislature established a Tax Expenditure Commission to "study carefully for the first time the various exemptions, deductions and credits in the Massachusetts tax code, and to recommend methods for measuring and reviewing their effectiveness." The Commission recommended an overall reduction in the number and cost of these special tax breaks. It also recommended: identifying the clear purpose of each special business tax break; creating clear metrics to gauge their impact; conducting a regular rolling review of whether to let these programs expire; and spelling out clear rules about when the Commonwealth would "clawback" forgone revenues from businesses that fail to deliver the jobs or other kinds of economic development for which the given tax break was originally awarded. Most of these recommendations have yet to be implemented. MassBudget's new report tracks and explains the growth of special business tax break spending, and how it has resulted primarily from three major, industry-specific tax breaks including  for manufacturing companies, mutual fund companies, and tax breaks for movie production companies. The report examines these and a number of other recent tax breaks for businesses in Massachusetts. Read the new report here (LINK). The Massachusetts Budget and Policy Center (MassBudget) produces policy research, analysis, and data-driven recommendations focused on improving the lives of low- and middle-income children and adults, strengthening our state's economy, and enhancing the quality of life in Massachusetts. MASSACHUSETTS BUDGET AND POLICY CENTER 15 COURT SQUARE, SUITE 700 BOSTON, MA 02108

Massachusetts Budget and Policy Center, 15 Court Square, Suite 700, Boston, MA 02108 Sent by nberger@massbudget.org in collaboration with Try it free today