Massachusetts Sales Tax Relief Act

Last updated

Question 3
Massachusetts Sales Tax Relief Act
Results
Choice
Votes %
Check-71-128-204-brightblue.svg Yes966,97343.20%
Light brown x.svg No1,271,53256.80%
Valid votes2,238,505100.00%
Invalid or blank votes00.00%
Total votes2,238,505100.00%

MA Question 3 2010 Counties.svg
MA Question 3 2010 Municipalities.svg
MA Question 3 2010.svg

Massachusetts Question 3, filed under the name, the 3 percent Sales Tax Relief Act, appears on the November 2, 2010 ballot in the state of Massachusetts as an initiative. The measure, if enacted by voters, would reduce the state sales tax rate from 6.25 to 3 percent. The measure was sponsored by the Alliance to Roll Back Taxes headed by Carla Howell. The measure would be enacted into a law 30 days after the election if approved by voters. [1] [2] [3] [4] [5]

Contents

Text of measure

Ballot title

The ballot title of the 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? [6]

Summary

The summary of the measure reads:

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. [6]

Fiscal impact

Proponents of the measure say rolling back the sales tax to 3% will stimulate $132 million in private sector investment; put an average of $688 back in the pockets of 3,400,000 taxpayers and create 33,000 new, private sector jobs. Political leaders in the state have claimed that there is no current backup plan if the measure is approved by voters. [2]

Support

Supporters

Arguments

Opposition

Opponents

Arguments

Arguments that have been made against the measure include:

Finance

State reports showing key campaign financers: [11]

ContributorAmount
National Education Association$1,325,000.00
Massachusetts Teachers Association$1,062,000.00
Service Employees International Union$888,000.00
American Federation of Teachers - Massachusetts$704,000.00
American Federation of State, County and Municipal Employees$200,000.00
Boston Teachers Union$150,000.00
Mass Nurses Association$104,000.00

Media endorsements

Support

Opposition

Path to the ballot

This is one of the fastest that tax drops Massachusetts has ever had from before 1900 the tax percentile has been 3 percent then over the course of 100 years it has raised to 6 percent then dropped back down. Activists stated during the week of November 19, 2009 that they had collected enough signatures to place the measure on the 2010 ballot. Carla Howell, chairwoman of the committee organizing the effort, Alliance to Roll Back Taxes, declined to provide the number of signatures collected, but did state: "We do feel confident we've submitted more than the requirement." The initiative was reviewed by the Massachusetts Legislature. Since the Massachusetts Legislature did not approve of the initiative by the May 4, 2010 deadline, petition organizers must have obtained signatures from about 1/2 of 1% of voters who voted in the last governor election and submit them before or on July 7, 2010. According to the Massachusetts Secretary of State's office, that number amounted to 11,099 signatures. [14]

On June 23, 2010, initiative supporters turned in approximately 19,000 signatures, giving them a good chance of making the ballot in November. Carla Howell, the leader of the initiative campaign, stated that the measure will be placed on the ballot since that number of signatures was well over the 11,099 required. [15]

On July 13, 2010, the Secretary of the Commonwealth affirmed that the sales tax roll back to 3% measure will be on the ballot as Question 3.

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References

  1. Massachusetts Secretary of State, "Elections: Initiative Petition for Law"
  2. 1 2 Boston Herald, "Mass. leaders: No ‘Plan B’ if sales tax cut passes", May 23, 2010
  3. Wicked Local, "Massachusetts ballot questions announced by secretary of state", July 15, 2010
  4. PR Inside, "Fitch Rates Massachusetts' $358MM GO Bonds 'AA+'; Outlook Stable", August 17, 2010 Archived September 12, 2010, at the Wayback Machine
  5. Massachusetts Attorney General, http://www.mass.gov/?pageID=cagoterminal&L=3&L0=Home&L1=Government&L2=Initiatives+%26+Other+Ballot+Questions&sid=Cago&b=terminalcontent&f=government_initiativepetitiontracking&csid=Cago
  6. 1 2 Massachusetts Secretary of State
  7. Massachusetts Local News, "Republicans to pick top candidate for Massachusetts governor's race", April 16, 2010
  8. 1 2 3 The Sun Chronicle, "Sales tax cut a tough sell", February 22, 2010
  9. Fox News, "Should Massachusetts Reduce Its Sales Tax?", April 30, 2010 Archived May 3, 2010, at the Wayback Machine
  10. Wicked Local, "Newton mayor warns about danger of sales tax rollback", October 6, 2010
  11. efs.cpf.state.ma.us, " The Office of Campaign & Political Finance (OCPF)", Retrieved October 25, 2010 Archived October 31, 2010, at the Wayback Machine
  12. on Question 3- Boston Herald
  13. The Republican, "Editorial: It's not right time to roll back Massachusetts taxes", April 29, 2010
  14. The Republican, "Effort gains steam to trim sales tax", November 19, 2009
  15. Boston.com, "Backers say sales tax cut to be on ballot", June 24, 2010