Bill
H 3169
MA bill bars the Department of Revenue from using charitable donations or unpaid nonprofit board service to determine residency/domicile for tax purposes.
Status: Scrivener’s error corrected (filed/prefiled Dec 5, 2024; introduced/read Jan 14, 2025; referred to committee; subsequent docket activity through 2025)
Note on docket inconsistency
- The bill docketed as H 3169 (sponsored by Rep. Jay D. Livingstone, 8th Suffolk) is titled “An Act to encourage donations to local nonprofits” and amends Massachusetts tax law. The file also contains multiple, unrelated copies of a South Carolina draft concerning penalties for driving without a license. That South Carolina text appears to be a clerical or scrivener error and is not part of the Massachusetts proposal described below.
Purpose and intent
- The bill’s stated purpose is to encourage donations to Massachusetts-based nonprofit organizations by removing charitable giving and uncompensated nonprofit service from factors used to determine residency or domicile for Massachusetts tax purposes.
Key provision
- Amendment to Section 5A of Chapter 62 (Massachusetts General Laws):
- Adds subsection (e): The Commissioner of Revenue shall not consider
- charitable donations or volunteer services made to charitable organizations based in Massachusetts, or
- unpaid service on a nonprofit board (non‑compensated membership)
- for the purpose of determining an individual’s residency or domicile for tax purposes.
- In short: charitable giving and unpaid nonprofit board service in Massachusetts cannot be used by the Department of Revenue as evidence that a person is domiciled or resident in Massachusetts.
Who would be affected
- Individuals who donate to or volunteer (including unpaid board members) for Massachusetts-based charitable organizations.
- Massachusetts nonprofit organizations (may see increased willingness to receive donations/board service).
- Department of Revenue and auditors (limits evidence they may consider in residency/domicile determinations).
- Taxpayers with multi‑state ties who currently face residency challenges based partly on charitable activity.
Potential impacts and issues
- Encourages civic involvement and donations by reducing risk that such activity will be used to assert Massachusetts domicile.
- Could reduce one category of evidence used in domicile/residency audits, potentially complicating the Revenue Department’s ability to establish residency in close cases.
- Implementation may require DOR guidance to clarify scope (e.g., what constitutes “based in Massachusetts,” and interaction with other domicile factors).
- Fiscal impact not specified; likely minimal direct revenue effect but could affect audit outcomes.
Procedural / timeline notes from docket
- Prefiled: 12/05/2024. Introduced/read first time: 01/14/2025. Referred to committee (Judiciary; later docket entries list Revenue). Scrivener’s error corrected: 02/05/2025. Multiple hearing entries scheduled/rescheduled for 11/18/2025 (per docket). Several duplicate or inconsistent committee entries appear in the public file.
Related bill
- HD 2672 is listed as a related/replacing bill.
Compiled from official sources — confirm details with the bill’s official record.
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