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A new nonpartisan analysis from Tufts University shows that Question 5, the ballot question strengthening Massachusetts’ Chapter 62F tax cap, could deliver significant and recurring tax relief to taxpayers across the Commonwealth. The Massachusetts Fiscal Alliance is calling on state lawmakers to allow Question 5 to proceed to voters without legislative interference.
According to the Center for State Policy Analysis at Tufts University, Question 5 would dramatically increase both the frequency and size of Chapter 62F tax refunds. The analysis estimates the proposal would trigger refunds two to four times as often and return two to seven times as much money to taxpayers. Averaged across both refund and non-refund years, Tufts estimates taxpayers would receive roughly $200 to $250 per year.
“These numbers are incredible and demonstrate exactly why Question 5 is so important for Massachusetts taxpayers. This is meaningful, broad-based tax relief that would put money back into the pockets of the people who earned it,” said Massachusetts Fiscal Alliance spokesman Paul Diego Craney. “For years, taxpayers have watched state spending and tax collections climb while Beacon Hill finds new ways to spend every dollar that comes through the door, and then some. Question 5 would finally give taxpayers a stronger and more reliable check on excess tax collections.”
Tufts also found that the increased refunds under Question 5 would reduce state revenue by an amount comparable to an across-the-board income tax cut of approximately 0.15 to 0.2 percentage points.
“That comparison puts the potential impact into perspective. Massachusetts voters have an opportunity to secure recurring, broad-based tax relief without waiting for Beacon Hill politicians to decide whether taxpayers deserve to keep more of their own money,” said Craney. “The Legislature should not interfere with that choice.”
Chapter 62F was originally approved by Massachusetts voters in 1986 and requires excess state tax collections above a statutory limit to be returned to taxpayers. Despite nearly four decades of growth in state government, the law has triggered refunds only twice. Question 5 would change the calculation so the revenue limit is more closely tied to actual tax collections, making refunds substantially more likely.
The Tufts analysis comes as the Legislature considers its own changes to Chapter 62F that could affect the impact of Question 5.
“Voters created Chapter 62F, and voters should decide whether to strengthen it,” said Craney. “The Legislature should not attempt to preempt, dilute, or undermine Question 5 before voters have their say. The independent numbers from Tufts show what is at stake: more frequent refunds, substantially more money returned to taxpayers, and hundreds of dollars in average annual tax relief.”
“Massachusetts taxpayers deserve a meaningful check on the growth of state government. Question 5 gives voters the opportunity to strengthen that check and ensure that when tax collections grow beyond reasonable limits, some of that money actually goes back to the taxpayers,” concluded Craney.
