The state auditor recently announced that nearly $3 billion will be returned to Massachusetts taxpayers, due to the obscure tax-cap law known as Chapter 62F that upended negotiations over the state’s economic development bill in early August.
Auditor Suzanne Bump said in a press release that her office finished its review of collected tax revenues and determined that the amount exceeds the limit set by Chapter 62F by roughly $2.94 billion. As a result, taxpayers will get back about 13 percent of the income taxes they paid in 2021.
Enacted in 1986, Chapter 62F created a limit on annual state tax revenue growth, based on increases in total wages and salaries of Massachusetts citizens. According to the law, if the state collects more than the allowed amount of tax revenue in any one fiscal year, the state is required to return the surplus to taxpayers.
The Baker administration has said that taxpayers could begin receiving automatic refunds in November, either by check or direct deposit.Back to All News