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HD 6119

A monthly report of the Department of Revenue (under Section 5(e) of Chapter 62F of the General Laws) on year-to-date net state tax revenue for March, 2026

194th Legislature (2025-2026)

DOR must issue a March 2026 62F report detailing year-to-date net tax revenue, FY26 projections, and whether revenue could exceed the allowable cap, with 4% surtax excluded.

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Bill Summary · HD 6119

Summary of Bill HD 6119 (Session 194th, Massachusetts)

Purpose and intent

  • The bill requires the Department of Revenue (DOR) to provide a monthly March 2026 62F report detailing:
    • Year-to-date net state tax revenue for the current fiscal year,
    • Projections of net state tax revenue for the remainder of the current fiscal year,
    • Projections of if and when net state tax revenue may exceed the allowable state tax revenue for the current fiscal year.
  • This aligns with Section 5(e) of Chapter 62F and related statutory requirements, updating reporting to reflect year-to-date performance and near-term outlook for FY26.

Key provisions and changes

  • Reporting content (as stated in the bill):
    • Year-to-date net state tax revenue for the current fiscal year (excluding 4% income surtax revenue, per guidance).
    • DOR’s projection of total net state tax revenue for the full fiscal year (FY26).
    • DOR’s projection of allowable state tax revenue for FY26 and whether/when net state tax revenue could exceed that allowance.
  • Exemption for 4% income surtax:
    • The 4% income surtax revenue is not counted toward the allowable-state-tax-revenue limitations, consistent with subsection (d) of section 2BBBBBB of section 17 of chapter 29 and Chapter 62F provisions.
  • Exhibits and methodological detail:
    • The bill includes exhibits showing breakdowns by tax type (income, sales and use, corporate, deeds, etc.) and the impact of 62F reductions.
    • Exhibits illustrate the growth factor methodology used to determine allowable state tax revenue for FY26 (based on wage growth and related projections).
  • Projections and outcomes:
    • The March 2026 report in the bill projects:
    • Year-to-date net state tax revenue (excluding 4% surtax): $30,032,776,903 as of March 31, 2026.
    • Full FY26 net state tax revenue projected: $42,571,422,487.
    • FY26 allowable net state tax revenue: $48,266,193,259.
    • Net state tax revenue above/below allowable: a shortfall of $(5,694,770,772) for FY26.
    • The bill notes that, based on current estimates and data, FY26 net state tax revenue is projected to not exceed FY26 allowable state tax revenue, though the chart shows a projected shortfall when excluding 4% surtax and using proposed allowable revenue.

Who/what would be affected

  • State agencies:
    • Department of Revenue (DOR) would prepare and submit the monthly 62F report with detailed year-to-date and projections.
  • Fiscal monitoring:
    • The State Comptroller and related budget offices would use the projections to assess whether net state tax revenues remain within the 62F allowable limits for FY26.
  • Tax revenue components:
    • All major state tax categories reported by DOR (income, sales and use, corporate, deeds, estate, room occupancy, etc.) feed into the month-to-month and annual projections.

Procedural and timeline aspects

  • Reporting cadence:
    • March 2026 monthly 62F report is the focal document, but the statutes compel annual validation by the State Auditor to determine if prior-year net revenues exceeded allowable revenues.
  • Legal references:
    • Section 5 of Chapter 62F (as amended by the Acts of 2023) governs the report content.
    • Subsection (d) of section 2BBBBBB of section 17 of Chapter 29 provides 4% surtax revenue treatment.
    • Chapter 62F growth-factor methodology (Exhibits 2 and 3) informs the calculation of allowable state tax revenue.
  • Data sources and contacts:
    • DOR CFO Tim Rooney is named as a contact for questions; the report includes contact details for DOR leadership and fiscal staff.

Bottom line

  • HD 6119 formalizes and highlights DOR’s March 2026 62F report content, emphasizing year-to-date performance, near-term projections, and potential (but currently projected to be non-binding) exceedance of the allowable state tax revenue for FY26, while maintaining the special treatment of 4% income surtax revenues under 62F. The bill enhances transparency around how the Commonwealth measures and compares actual tax revenues to the statutory cap.

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

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