BOSTON (WWLP) – This week Secretary Bill Galvin certified Question 1, the Fair Share Amendment, and signed Question 2, which deals with dental insurance, into law.
On Thursday, the Secretary of State signed off on the final certification of the Fair Share Amendment, also known as the Millionaire’s Tax. The amendment will impose a surtax of 4% on incomes over 1 million dollars, effectively making the tax rate 9%.
In signing off on the amendment, the Secretary of State also called upon the legislature to create an education trust fund. He believes this will reassure voters that the funds from the new tax will go towards education. And he is also already urging lawmakers to exclude some home sales. He believes house sales for income-limited or elderly residents should be excluded from a person’s annual taxable income.
Secretary Bill Galvin of the Secretary of State stated, “In the application of the tax, there should be an exception I think for homeowners who have held their property, their primary residence for a long period of time, and have accrued a substantial amount of equity their, which means they’re gonna have a large payout, one-time only windfall perhaps, at the sale of their home. I think it’s unfair to them to categorize them as millionaires.”
The Secretary also signed Question 2 into law this week, which requires companies to spend at least 83% of premiums on dental expenses. The Dental ballot question will take effect in 2024, whereas the fair share amendment will start on January 1st of 2023.