(The Center Square) – Tax relief trickling down to residents stemming from a 1986 Massachusetts law is being hailed as a tremendous victory by one public policy group.
State Auditor Suzanne Bump announced Thursday that a review of net tax revenues and allowable state tax revenues for fiscal year 2022 have triggered the Chapter 62F law, which calls for any revenues beyond allowable tax revenues be given back to taxpayers. That’s $2,94 billion this time around.
According to the release, Bump reported the state had net tax revenues of $41.8 billion at the end of the fiscal year, which was $2.941 billion beyond the benchmark of $38.9 billion.
Paul D. Craney, spokesman for Massachusetts Fiscal Alliance, said the organization was prepared to take legal action, if necessary, to see the extra revenue be returned to taxpayers.
“This is a tremendous victory for all taxpayers of the commonwealth,” Craney said in a release. “We were fully prepared to bring the auditor to the Supreme Judicial Court to enforce this certification and are even more thrilled that they’ve made this certification ahead of the Sept. 20 deadline.”
The public policy group, according to a release, had partnered with the Fiscal Alliance Foundation and Citizens for Limited Taxation to join forces with New England Legal Foundation and the Goldwater Institute to ensure Chapter 62F was enforced.
Bump said her office’s review is more than just checking the Department of Revenue’s math.
“As has been done each year of my tenure, we apply generally accepted government auditing standards in our review to verify the accuracy and completeness of the report provided by DOR,” Bump said. “This provides us with reasonable assurance required by those standards that DOR’s figures are correct.
“According to Chapter 62F, a return of this amount in the form of a credit must be effectuated by the commissioner of DOR.”
Bump, according to the release, said the revenue collections during the fiscal year show “unprecedented capital gains tax revenue” along with an impact of pass-through entity excise payments, labor conditions, and retail sales strength.
“I would underscore for the Legislature and the public one key element in the FY22 revenue increase,” Bump said in the release. “The change in the taxation of so-called pass-through business entities which just took effect last year generated $2.25 billion in revenue, much of which has yet to be claimed in the form of personal income tax credits and deductions by the business owners.”