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H 4128

An Act relative to establishing a commission to study gambling winnings

194th Legislature (2025-2026) Introduced by Paul McMurtry

Creates a special commission to study Massachusetts lottery and gambling tax thresholds and propose optimal levels; report due by 12/31/2026 to guide future policy.

Hearing rescheduled to 11/18/2025 from 10:00 AM-11:00 AM in B-1 and Virtual Hearing updated to New End Time
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Bill Summary · H 4128

Summary of H.4128: An Act relative to establishing a commission to study gambling winnings

Purpose and intent

  • Establishes a special commission to study the threshold amounts for lottery and gambling taxation in the Commonwealth of Massachusetts.
  • Aims to evaluate current tax thresholds, their economic and revenue impact, and to propose optima for taxation thresholds related to lottery and gambling winnings.
  • Intended to inform policy and potential legislative changes through data-driven recommendations.

Key provisions

  • Establishment of a special commission: Created pursuant to section 2A of chapter 4 of the General Laws to study threshold amounts for lottery and gambling taxation.
  • Composition: The commission includes:
    • Co-chairs: Chairs (or designees) of the Joint Committee on Revenue.
    • The chair (or designee) of the Massachusetts Gaming Commission.
    • The State Treasurer (or designee).
    • The Secretary of Administration and Finance (or designee).
    • The Commissioner of Revenue (or designee).
    • 4 additional members: one appointed by the Speaker, one by the House minority leader, one by the Senate President, and one by the Senate minority leader.
  • Scope of study: The commission must examine:
    • (i) Current lottery and gambling tax thresholds and their effects on the Commonwealth.
    • (ii) Economic implications of those thresholds.
    • (iii) Comprehensive data on threshold amounts to inform policy decisions.
    • (iv) Recommendations for more optimal lottery and gambling tax thresholds.
  • Report: The commission must prepare and submit a report detailing findings, recommendations, and any proposed standards and legislation necessary to implement its recommendations. The report must be delivered to:
    • Joint Committee on Revenue
    • House Ways and Means and Senate Ways and Means
    • Clerks of the House and Senate
    • Deadline: no later than December 31, 2026.

Status and timeline

  • Introduced: May 12, 2025
  • Referred to: Committee on Revenue (May 12, 2025)
  • Senate action: Senate concurred (May 15, 2025)
  • Hearing dates: The hearing has been scheduled and rescheduled multiple times; most recently set for November 18, 2025 (with updates indicating changes to time, location, and end time).
    • Note: The hearing location and times have been altered several times, reflecting ongoing scheduling adjustments.
  • Emergency operation: The act includes an emergency preamble, indicating immediate effect is intended to preserve public convenience upon passage.

Sponsors

  • Primary sponsor: Paul McMurtry (House of Representatives)

Related measures

  • Related House Bill: HD 3906 (replaces) — the version referenced in the bill materials.

Potential impact

  • The bill does not directly change tax rates or thresholds today but creates a formal mechanism to study and evaluate them.
  • Outcomes could inform future Massachusetts tax policy on lottery and gambling winnings, potentially shaping threshold levels, compliance, revenue projections, and related legislation.
  • By involving high-level fiscal officers and legislators, the commission’s work is positioned to influence both revenue forecasting and legislative reforms.

Who is affected

  • State government: relevant agencies (Revenue, Administration and Finance, the Treasurer, the Gaming Commission) and the General Court.
  • Tax policy stakeholders: entities affected by lottery and gambling tax thresholds, including taxpayers and operators in the Commonwealth.
  • General public: potential long-term changes to how gambling winnings are taxed, depending on the commission’s recommendations.

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

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