Governor Charlie Baker on Friday announced details of how the state plans to return nearly $3 billion in surplus revenue to millions of taxpayers starting this fall.
The news comes after Auditor Suzanne Bump confirmed the Revenue Department must return $2.94 billion to taxpayers because state revenue exceeded the amount allowed under a voter-approved law.
Bump certified that the Tax Capping Act of 1986, known as Chapter 62F, set the state’s maximum tax revenue for fiscal year 2022 at $38,871,154,627. The state government collected $41,812,654,358 in fiscal year 22, resulting in a surplus of $2,941,499,731, State House News reported Thursday.
In a statement, Baker said, “Bigger-than-expected state tax revenue has led to a major surplus for fiscal year 2022, and we are pleased to be able to return nearly $3 billion in excess revenue to taxpayers. . With families facing continued pressure from high prices and inflation, these returns will provide much needed relief. Even with nearly $3 billion returning to taxpayers, there remain significant state and federal resources, and we look forward to working with the Legislative Assembly to invest this funding in our economy, our communities and our families.
Beginning in November, $2.941 billion in Chapter 62F refunds will be distributed to approximately 3.6 million eligible taxpayers as a proportion of Massachusetts personal income tax taxpayers incurred in the tax year. immediately preceding 2021 taxation.
Generally, eligible taxpayers will receive a credit in the form of a refund of approximately 13% of their personal income tax for the 2021 Massachusetts tax year.
The state noted that this percentage is a preliminary estimate and will be finalized in late October, after all 2021 tax returns are filed.
To qualify for a credit, residents must have filed a 2021 state tax return by October 17, 2022. The credit may be reduced due to refund interceptions, including for unpaid taxes , unpaid child support and certain other debts.
Those who qualify for a refund will automatically receive it in the form of a check mailed or direct deposit.
A refund estimator can be found here.
This is a developing story. Check back for updates as more information becomes available.
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