An Act relative to limiting state tax collection growth and returning surpluses to taxpayers

This bill would limit Massachusetts' annual state tax collections by capping growth at a set rate calculated using a "growth factor" applied to prior year revenues. If actual tax collections exceed this calculated cap, the surplus would be returned directly to taxpayers. It defines "state tax revenues" broadly to include income, sales, and business taxes (but excludes federal funds, bond proceeds, and tuition fees). These rules would apply to fiscal years beginning after June 30, 2027. The bill amends existing tax law to implement this cap-and-return mechanism.