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H 5415

MINORITY REPORT ON THE INITIATIVE PETITION OF CHRISTOPHER ROBERT ANDERSON AND OTHERS FOR THE PASSAGE OF AN ACT RELATIVE TO LIMITING STATE TAX COLLECTION GROWTH AND RETURNING SURPLUSES TO TAXPAYERS (SEE HOUSE, NO. 5006); AND THE INITIATIVE PETITION OF JAMES JOHN STERGIOS AND OTHERS FOR THE PASSAGE OF AN ACT RELATIVE TO REDUCING THE STATE PERSONAL INCOME TAX RATE FROM 5% TO 4%. (SEE HOUSE, NO. 5007)

194th Legislature (2025-2026) Introduced by Ryan Fattman

Reduce the state personal income tax from 5% to 4% to provide immediate taxpayer relief.

See H5006 and H5007
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WeVote Research Nonpartisan
Bill Summary · H 5415

Summary of Bill H 5415 (Massachusetts, 194th Session) – Minority Report

Purpose and intent

  • The Minority Report accompanies two initiative petitions seeking to alter state tax policy:
    1. Initiative Petition 25-18 (House 5007): Reducing the state personal income tax rate from 5% to 4%.
    2. Initiative Petition 25-17 (House 5006): Limiting state tax collection growth and returning surpluses to taxpayers.
  • The report argues that reducing the income tax would provide meaningful, across-the-board relief for Massachusetts families (roughly $1,500 per average family) and make the state more affordable, particularly in housing, childcare, utilities, energy, and healthcare.
  • It asserts that current tax and budget dynamics, including the state’s approach to the Right-to-Shelter Law and climate/energy policies, contribute to affordability pressures and outmigration. The report frames the proposed measures as needed to improve competitiveness and residents’ financial well-being.

Key provisions and changes (as proposed in the two initiatives)

  • House 5007 (Petition to reduce personal income tax):
    • Change the state personal income tax rate from 5% to 4%.
  • House 5006 (Petition to limit tax growth and return surpluses):
    • Establish constraints on annual state tax collection growth.
    • Create mechanisms to return any budget surpluses to taxpayers, rather than retaining all surplus revenue in state reserves or excess spending.
  • The minority advocates for adopting both petitions, arguing they collectively provide immediate taxpayer relief and structural restraint on future revenue growth.

Who/what would be affected

  • Taxpayers in Massachusetts: Individuals and households would see a reduction in the state personal income tax rate from 5% to 4%, affecting take-home pay and net tax liability.
  • State fiscal policy framework: Policies governing tax revenue growth, surpluses, and potential surplus distribution to taxpayers would be modified under the second petition.
  • Budget and program funding: Because tax revenue would be lower (due to a lower rate) and surpluses may be returned to taxpayers, there could be implications for funding levels of essential services and programs funded by the state. The report characterizes these as manageable with surplus returns and growth limits, though specific fiscal impacts (e.g., dollar amounts, affected programs) are not detailed in the summary.

Procedural and timeline aspects

  • The Minority Report is dated May 6, 2026, and reflects the minority position of the Committee on Laws Relative to Tax Policy.
  • Action history notes: On May 7, 2026, the bill references actions on House 5006 and House 5007 (the two petitions that comprise the initiative proposals).
  • As “initiative petitions,” these measures would, if adopted by voters, become law. The report itself is advisory to the General Court, urging passage of the petitions.

Notable context and framing

  • The proposal emphasizes affordability challenges in Massachusetts, including cost of living and outmigration concerns.
  • The minority contends that current public policy, including climate and energy programs and certain welfare-related legal frameworks, contributes to budgetary pressures and affordability challenges.
  • The report frames tax relief as a balance between providing immediate financial relief and ensuring essential services are funded, via proposed limitations on tax growth and periodic returns of surplus revenue.

If you’d like, I can add a section with potential fiscal implications (estimates of revenue loss, impact on specific programs) or compare these proposals to current Massachusetts tax policies.

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

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