Conservatively Speaking

Here is a ballot measure to keep an eye on

Posted by Mary Lazich on Oct. 28, 2010

Taxes

The Bay State is often jokingly referred to as, “Taxachusetts.” Voters in Massachusetts have a chance to radically change their image this November.

The November 2, 2010, statewide ballot in Massachusetts will include the Massachusetts Sales Tax Relief Act, Question 3 (2010), an initiated state statute. Petition signatures were collected to attempt to get the question placed on the ballot. The state Legislature did not approve the measure within a prescribed deadline, set during May 2010. Under the process, the initiative is then put before voters.

The details make this issue fascinating. Voters will decide whether the state sales tax in Massachusetts should be lowered from the current rate of 6.25 percent to three percent. If the measure is approved and it needs a simple majority, it becomes law 30 days after the election. A Suffolk University poll shows 51 percent support the sales tax reduction.

Proponents say the lower sales tax will increase commerce, create more private sector jobs, and will allow residents to keep more of their own money. Opponents say the tax cut will create a bigger hole in the state’s deficit.

The question will be interesting to watch Election Day given the current mood of voters. The ballot measure reads:

“Do you approve of a law summarized below, on which no vote was taken by the Senate or the House of Representatives before May 4, 2010?

This proposed law would reduce the state sales and use tax rates (which were 6.25 percent as of September 2009) to 3 percent as of Jan. 1, 2011. It would make the same reduction in the rate used to determine the amount to be deposited with the state Commissioner of Revenue by non-resident building contractors as security for the payment of sales and use tax on tangible personal property used in carrying out their contracts.

The proposed law provides that if the 3 percent rates would not produce enough revenues to satisfy any lawful pledge of sales and use tax revenues in connection with any bond, note, or other contractual obligation, then the rates would instead be reduced to the lowest level allowed by law.

The proposed law would not affect the collection of moneys due the Commonwealth for sales, storage, use or other consumption of tangible personal property or services occurring before Jan. 1, 2011.

The proposed law states that if any of its parts were declared invalid, the other parts would stay in effect.

A YES VOTE would reduce the state sales and use tax rates to 3 percent.

A NO VOTE would make no change in the state sales and use tax rates.^”