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HD 5032

A communication from the Office of the Comptroller (see Section 5G of Chapter 29 of the General Laws) submitting the Capital Gains Tax Revenue Transfers to the Stabilization Fund, the State Retiree Trust Fund, and the Pension Liability Fund for the fourth quarter of fiscal year 2025

194th Legislature (2025-2026)

Massachusetts comptroller reports Q4 FY2025 capital gains tax transfers to state stabilization, retiree benefits, and pension liability funds as required by law.

Placed on file
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WeVote Research Nonpartisan
Bill Summary · HD 5032

Legislative bill overview

HD 5032 is a routine fiscal communication from Massachusetts's Office of the Comptroller reporting capital gains tax revenue transfers to three state funds for Q4 FY2025. The bill documents mandatory allocations required under existing law to the Stabilization Fund (rainy day reserve), the State Retiree Trust Fund (for retiree healthcare/benefits), and the Pension Liability Fund (for unfunded pension obligations).

Why is this important

Massachusetts taxes capital gains at a higher rate than regular income, and state law requires a portion of this revenue to automatically flow into these three funds rather than general operations. This mechanism helps stabilize state finances during downturns, pre-funds long-term liabilities, and reduces pressure on future budget cycles. The actual dollar amounts transferred signal the strength of investment activity and wealth creation in the state.

Potential points of contention

  • Opacity of amounts: The bill description doesn't specify the transfer amounts, making it difficult for the public to assess whether allocations are adequate for long-term liabilities
  • Competing priorities: Funds directed to pensions and retiree benefits reduce money available for current services like education or healthcare, creating tension over intergenerational equity
  • Capital gains volatility: These transfers fluctuate with market conditions, making long-term financial planning uncertain and potentially creating pressure to raid these funds during downturns

Compiled from official sources — confirm details with the bill’s official record.

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