Question 5State law · Citizen initiative
Change state revenue limit
Explain it like I'm 5
The state has a limit, like a piggy-bank line, on how much tax money it can keep. This changes the line and sends money above it back to taxpayers.
Yes vote
A yes vote changes the state revenue-limit formula and requires excess collections to be refunded.
No vote
A no vote keeps the current revenue-limit formula.
The question to ask yourself
Should excess revenue be refunded more often, even if that reduces flexibility for public services and reserves?
The case for
- Could return more excess revenue to taxpayers.
- Ties state revenue growth more closely to wage growth.
- Makes the rule apply to millionaire surtax revenue.
Backed by: Taxpayers for an Affordable Massachusetts, Pioneer Institute, Massachusetts Fiscal Alliance
The case against
- Could reduce money for schools, health care, and local aid.
- Could leave less money in rainy-day reserves.
- Refunds could force difficult budget choices when needs increase.
Opposed by: Protect Massachusetts’ Future, Massachusetts Teachers Association, Massachusetts Budget and Policy Center
- Money
- The official fiscal statement says the measure would reduce money available for the state budget, local aid, and the rainy-day fund, but the refund amount is not estimated for every year.
- Don't be misled
- Calling this a tax-rate cut is misleading because it changes the revenue limit and refund formula, not tax rates.