BOSTON (WWLP) – It’s budget week for the House on Beacon Hill, 22News has the latest on a policy measure that could affect your wallet.
This past year, nearly $3 billion in Chapter 62F refunds were distributed to taxpayers and Democrats in the House aren’t too interested in that happening again so soon.
Chapter 62F is a 1986 voter-approved measure that caps allowable state tax revenue at a level tied to annual wage and salary growth. It has only ever been triggered twice in state history, the most recent being last year.
When the tax haul goes above the cap, it needs to be returned to taxpayers. However, the House voted this week to keep the new surtax from counting toward tax collections. The new surtax is expected to bring in close to $1 billion in revenue to be spent on education and transportation.
The vote was along party lines.
“No other tax we collect, the gas tax which is dedicated to going towards roads is not excluded from that surtax money. So I don’t know why we’re taking this tax revenue and excluding it from something that could result in a surplus.”
Although some argued that this goes against the voters in 1986, Representative Lindsay Sabadosa believes this is in line with the will of current voters.
“We wanted to be very clear that the money coming in from that tax is going just like the voters asked, to education and transportation, and we didn’t want to see it potentially included in anything else that might be considered a tax break. So we’re really trying to respect the will of the voters.”
The House also recently passed a tax package that would change how Chapter 62F refunds are calculated to make them equally divided among taxpayers.
Both Reps told 22News they expect the budget negotiations to be finished by Wednesday night.