State House Yanks Away $250 MA Tax Rebate In Final Budget

MASSACHUSETTS — Contrary to promises made back in early July, Massachusetts middle-income residents will not be receiving $250 stimulus checks.

But House Speaker Ron Mariano says tax relief is still "going to happen" this year, as Masslive reported some watchdogs are claiming the relief headed to Massachusetts taxpayers is actually a "step backward in terms of progressivity."

The tax relief measure was removed during the final hours of the decision for the budget this weekend, in the wake of Gov. Charlie Baker saying the state would use a 1986 ballot measure to force Massachusetts to return nearly $3 billion to taxpayers sometime this fall.

This measure, called "62F" is expected to initiate an estimated $3 billion one-time direct tax relief based on income. This law requires excess tax revenues above a certain amount to be paid back to taxpayers. Upon learning of the measure, lawmakers on Beacon Hill decided to move forward with the $4 billion economic development bill, scraping the $250 payments.

"We have 62F that's the law of the land and it's going to happen," Mariano said Monday. "The governor has said it's the law of the land and that's worth, he thinks, $2.5 billion but he's not even sure," adding that Baker thinks he can make it happen this year. "So I think that's an important return to the taxpayers."

Baker said taxpayers could expect to see 7 percent of their 2021 income taxes returned if the 1986 law is triggered - which adds up to about $250 a pop for individuals who earn $75,000. Back in July, House Speaker Ronald Mariano and Senate President Karen E. Spilka issued a joint statement saying they "will act" to provide one-time tax rebates of $250 to eligible taxpayers and $500 to eligible married couples, similar to Baker's desire to trigger the 1986 law.

"The tax breaks that are currently pending before the Legislature are eminently affordable within the context of the rest of this," Baker said last week. "I mean, you're talking about a tax year this past year in which tax revenue went up by over 20 percent, which came on the heels of a tax revenue increase in the previous year that went up by 15 percent."

"I mean, these are sort of unprecedented increases in tax revenue, which is in some ways exactly what this thing was designed [to do], to ensure that people in Massachusetts participated in that windfall," Baker continued in a statement.

By holding off on any specific decision, attempts at providing long-term relief through a rent control or deduction cap, child care and dependant care credit, senior circuit breaker tax credit and more will not get addressed, for now, Masslive reported.

Speaker Mariano said the bill will remain in conference committee.