Legislative Brief_MassCPAs

News & Updates from the Government Affairs Team

We're working to keep you informed in a world that changes by the minute. If you have anything you'd like to share, or if we can help you in any way, please email Zach Donah or Larry Liuzzo.

Massachusetts Budget Leaders Predict $36.9 Billion in FY23 Collections

Last week, the Chairmen of the Joint Committee on Ways and Means and the Secretary of Administration and Finance announced their FY23 consensus revenue forecast predicting collections will exceed $36.9 billion, reflecting a 2.7% growth in state tax revenue. The FY23 revenue forecast affirms several predictions made by the Department of Reveue (DOR) and other economic analysts who testified during the December 2021 consensus revenue hearing. To learn more, click here.

The consensus revenue forecast will be used as the baseline for building the FY23 budget, which Governor Baker is expected to release in the coming days. Another announcement last week was an adjusted increase of $1.584 billion to the FY22 state revenue forecast. We’ll keep you posted on all developments going forward.

Brent Addleman of The Center Square has more information on the FY23 consensus revenue forecast, which can be found here.

MassCPAs Testifies: Estate Tax Code Overhaul Needed

MassLive's January 14 editorial stated that MassCPAs “uses good logic to support a proposal…that would help mitigate what’s long been a concern” with respect to the efforts to increase the estate tax threshold. You can read the editorial here.

As reported last week, MassCPAs submitted testimony in support of House bill 2881, An Act relative to the Massachusetts estate tax code, which would, among other provisions of the bill, increase the exemption level from $1 million to $2.75 million and ensure that only the value of the estate above the exemption is taxed, not the entire estate. To read our testimony, click here.

In a press release supporting the legislation, MassCPAs President and CEO Amy Pitter stated:

“MassCPAs members are trusted tax and financial advisors to each of their clients who are obligated to advise them to do what is best for their financial wellbeing, which includes where they reside. Massachusetts is an expensive state to live and work in, and our current low estate tax threshold, exacerbated by the possibility of a new 4% surtax on taxable income of over $1 million, along with the new remote workforce, puts us at risk for losing these taxpayers to states without estate, income or sales taxes. House bill 2881 will, in part, encourage these taxpayers to stay domiciled in Massachusetts, and help keep our economy and communities strong. I urge the Massachusetts legislature to act on this with haste, and I thank Representative Dooley for his leadership and bipartisan support of this bill.”

Thanks to MassCPAs' members who submitted testimony in support of this legislation. We will keep you posted on any developments going forward. To get involved with legislative issues like this, become a CPA Advocate. You can learn more about the program here.

Massachusetts Legislature Considers $55 Million COVID-19 Bill

This week, the Massachusetts Legislature moved forward with a $55 million piece of legislation relative to COVID-19 spending needs. The House Ways and Means Committee moved the bill out of committee earlier this week and was unanimously approved by the House of Representatives yesterday. Included in the bill is money allocated to boost testing, distribute masks and more.

The legislation would also set the primary election date for September 6. The Senate is expected to take up the legislation in session next week.

The Boston Globe's Emma Platoff has more details on the bill, which can be found here.

New Health Connector "Simple Sign-Up" Checkbox on DOR Schedule HC

Simple Sign-Up is a new way for Massachusetts taxpayers to get help with health insurance coverage – right from their 2021 state tax returns. By checking the box, taxpayers are letting DOR and the Health Connector know they are interested in getting help enrolling in health insurance. The Health Connector will then reach out to the taxpayer about how to enroll in health insurance coverage.

As a reminder, Schedule HC is a Massachusetts state tax form where individuals report any health insurance they had during the year. Married taxpayers must both check the box to have their information sent to the Health Connector.

Most uninsured individuals qualify for low- or no-cost coverage through the Health Connector or MassHealth, the state’s Medicaid agency, but may not know it. To learn more about Health Connector coverage, click here. You can also use the Get an Estimate tool to find out what plans are available in your area and see what types of savings you may be eligible for after you apply. Free, in-person help is available to help people apply and enroll in a plan.

To learn more, click here.

DOR State and Local Tax (SALT) FAQs

The DOR FAQs webpage for the elective pass-through entity (PTE) excise can be found here (last updated January 12). The draft of the 2021 Massachusetts tax form 63D-ELT (entity level tax) can be found here.

The DOR released a working draft TIR that can be found here. Please note: The public comment period is open until the close of business tomorrow, January 21. Please email comments here.

DOR & IRS Updates

Guidance for Federal Relief Programs

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