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Bill

SD 2565

An Act relative to certificate of deposit interest income

194th Legislature (2025-2026) Introduced by Ryan Fattman and 1 co-sponsor

Massachusetts bill adjusts state tax treatment of certificate of deposit interest income, affecting how CD holders report earnings and potential state revenue from this income source.

House concurred
0
WeVote Research Nonpartisan
Bill Summary · SD 2565

Legislative bill overview

SD 2565 modifies Massachusetts tax treatment of certificate of deposit (CD) interest income. The bill appears to adjust how CD interest is taxed or reported for state income tax purposes, though the specific mechanics require review of the full text.

Why is this important

Massachusetts residents holding CDs—a common savings vehicle for conservative investors and retirees—could face different tax obligations. Changes to CD interest taxation affect household budgets and may influence savings behavior, particularly for lower-income savers relying on fixed-income investments.

Potential points of contention

  • Tax burden shifts: Whether the change increases or decreases taxes on CD holders, it redistributes fiscal impact across income groups
  • Compliance complexity: New reporting requirements or calculation methods could create administrative burden for banks and taxpayers
  • Savings incentives: Changes may discourage or encourage CD purchases depending on whether taxes increase or decrease, affecting state revenue and household savings patterns

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

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