Tax Changes Included in Massachusetts Supplemental Budget Bill

Massachusetts Governor Mitt Romney has signed a supplemental budget bill that contains corporate excise (income) tax, personal income tax, and property tax changes as discussed below.

Personal Income Tax: Commuting Expenses

For income tax years beginning after January 1, 2004, but before January 1, 2005, amounts expended by an individual for tolls paid for through a FastLane account or for weekly or monthly transit commuter passes for MBTA transit or commuter rail may be deducted from Part B adjusted gross income in determining Part B taxable income. The deduction does not cover amounts reimbursed by an employer or otherwise. For a single person, a married person filing a separate return, or a head of household filing a separate return, the deduction applies only to the portion of such expenses that exceeds $150 and the total amount deducted may not exceed $750. For a married couple filing a joint return, the deduction applies only to the portion of such expenses by each individual that exceeds $150 and the total amount deducted may not exceed $750 for each individual.

Low-Income Housing Tax Credit

The low-income housing credit against corporate excise (income) tax and personal income tax is amended to provide that upon application for state (formerly, federal) tax credits issued by the Department of Revenue, a taxpayer may elect to receive the state tax credit in the form of a loan generated by transferring the credit to the Department or its designee on terms specified by the Department in accordance with its qualified allocation plan.

Property Tax Bill Statement

Beginning in fiscal year 2006, a real estate tax bill must contain a statement of a delinquency for any tax, betterment assessment, water rate, annual sewer use, or other charge that may constitute a lien that is overdue more than 90 days.

List of State Lands

The Blue Hills Reservation and certain properties in the Town of Stoneham are added to the list of state lands whose fair market value must be periodically determined by the Commissioner of Revenue.

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