Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H5415

Caption

MINORITY REPORT ON THE INITIATIVE PETITION OF CHRISTOPHER ROBERT ANDERSON AND OTHERS FOR THE PASSAGE OF AN ACT RELATIVE TO LIMITING STATE TAX COLLECTION GROWTH AND RETURNING SURPLUSES TO TAXPAYERS (SEE HOUSE, NO. 5006); AND THE INITIATIVE PETITION OF JAMES JOHN STERGIOS AND OTHERS FOR THE PASSAGE OF AN ACT RELATIVE TO REDUCING THE STATE PERSONAL INCOME TAX RATE FROM 5% TO 4%. (SEE HOUSE, NO. 5007)

Summary

H5415 is a minority report supporting two related initiative petitions on state tax policy. One petition would limit the growth of state tax collections and require excess revenues to be returned to taxpayers; the other would reduce Massachusetts’ personal income tax rate from 5% to 4%. The report argues that lowering income taxes would provide meaningful relief to residents and make the Commonwealth more affordable. The minority report frames the proposal as a response to broader affordability pressures, citing housing, childcare, electricity, fuel, and healthcare costs, as well as out-migration and weak private-sector job growth. It presents the tax cut as a way to keep residents in Massachusetts, improve competitiveness with neighboring states, and ensure the state does not collect more revenue than needed for essential services. The report also links the tax debate to concerns about state spending priorities and budget strain. In terms of legal impact, the bill itself is not a standalone tax code amendment but a committee report recommending adoption of Initiative Petition 25-17 and Initiative Petition 25-18. If enacted through the initiative process, the proposals would amend Massachusetts tax law to lower the personal income tax rate and constrain revenue growth, potentially requiring surplus revenue refunds or rebates to taxpayers. That would directly affect state revenue policy, budget planning, and the amount of income tax collected from individuals. The general sentiment in the report is strongly supportive of tax reduction and skeptical of current state fiscal policy. The minority argues that residents need immediate relief and that existing policies have worsened affordability. The report also suggests that a 1% income tax cut is meaningful, countering testimony that it would be insignificant. The main points of contention are the size and value of the tax cut, the state’s spending priorities, and whether limiting revenue growth would undermine funding for essential services. The report criticizes spending on the state’s shelter policy and climate/clean energy initiatives, implying those areas contribute to higher costs. Supporters of the petitions emphasize taxpayer relief and affordability, while opponents or critics appear concerned about fiscal capacity and the practical effect of reducing state revenue.

Impact

If adopted, the initiative petitions referenced by H5415 would lower the Massachusetts personal income tax rate from 5% to 4% and impose limits on state tax collection growth, with surplus revenues potentially returned to taxpayers. This would affect state tax law, revenue forecasting, and budget authority, and would reduce income tax liability for individuals and households across the Commonwealth.

Sentiment

The sentiment in the minority report is strongly pro-tax-cut and pro-taxpayer relief. It portrays the petitions as necessary responses to affordability problems, out-migration, and weak economic conditions, and it argues that reducing taxes is a practical way to help residents and improve competitiveness. The available record contains no recorded votes or committee transcript debate, so the sentiment reflected here comes from the report itself rather than a broader documented consensus.

Contention

The principal contention is whether reducing the personal income tax and capping revenue growth would provide meaningful relief or instead constrain the state’s ability to fund services. The report’s author argues that residents are burdened by housing, energy, childcare, and healthcare costs and that current spending choices are misaligned. Critics implied in the report’s discussion appear to question the significance of a 1% tax cut and may favor preserving revenue for state programs, including shelter and climate-related spending.

Companion Bills

MA H5006

Replaced by Relative to limiting state tax collection growth and returning surpluses to taxpayers

Previously Filed As

MA H5407

REPORT of the SPECIAL JOINT COMMITTEE on INITIATIVE PETITIONS on the INITIATIVE PETITION of JAMES JOHN STERGIOS AND OTHERS FOR THE PASSAGE OF AN ACT RELATIVE TO REDUCING THE STATE PERSONAL INCOME TAX RATE FROM 5% TO 4%. (see House, No. 5007)

MA H5406

REPORT of the SPECIAL JOINT COMMITTEE on INITIATIVE PETITIONS on the INITIATIVE PETITION of DAVID JOHN O’NEILL AND OTHERS FOR THE PASSAGE OF AN ACT TO PROTECT WATER AND NATURE (see House, No. 5005).

MA H5403

REPORT of the SPECIAL JOINT COMMITTEE on INITIATIVE PETITIONS on the INITIATIVE PETITION of ANGIE AN-CHI TSO AND OTHERS FOR THE PASSAGE OF AN ACT TO RESTORE A SENSIBLE MARIJUANA POLICY (see House, No. 5002).

MA H5402

REPORT of the SPECIAL JOINT COMMITTEE on INITIATIVE PETITIONS on the INITIATIVE PETITION of NORMA B. SHULMAN AND OTHERS FOR THE PASSAGE OF AN ACT RELATIVE TO ELECTION DAY REGISTRATION (see House, No. 5001).

MA H5408

REPORT of the SPECIAL JOINT COMMITTEE on INITIATIVE PETITIONS on the INITIATIVE PETITION of ADAM GOMEZ AND OTHERS FOR THE PASSAGE OF AN ACT TO PROTECT TENANTS BY LIMITING RENT INCREASES (see House, No. 5008).

MA H5404

REPORT of the SPECIAL JOINT COMMITTEE on INITIATIVE PETITIONS on the INITIATIVE PETITION of DANIELLE SUSAN ALLEN AND OTHERS FOR THE PASSAGE OF AN ACT TO IMPLEMENT ALL-PARTY STATE PRIMARIES (see House, No. 5003).

MA H5414

MINORITY REPORT ON THE INITIATIVE PETITION OF DANIELLE SUSAN ALLEN AND OTHERS FOR THE PASSAGE OF AN ACT TO IMPROVE ACCESS TO PUBLIC RECORDS (SEE HOUSE, NO. 5004)

MA H5405

REPORT of the SPECIAL JOINT COMMITTEE on INITIATIVE PETITIONS on the INITIATIVE PETITION of DANIELLE SUSAN ALLEN AND OTHERS FOR THE PASSAGE OF AN ACT TO IMPROVE ACCESS TO PUBLIC RECORDS (see House, No. 5004).

MA H5409

REPORT of the SPECIAL JOINT COMMITTEE on INITIATIVE PETITIONS on the INITIATIVE PETITION of VICKI JEAN MCAULEY AND OTHERS FOR THE PASSAGE OF AN ACT RELATIVE TO LABOR RELATIONS POLICIES FOR COMMITTEE FOR PUBLIC COUNSEL SERVICES EMPLOYEES (see House, No. 5009)

MA H5410

REPORT of the SPECIAL JOINT COMMITTEE on INITIATIVE PETITIONS on the INITIATIVE PETITION of JOHN A. LIPPITT AND OTHERS FOR THE PASSAGE OF AN ACT TO REFORM AND REGULATE LEGISLATIVE STIPENDS (see House, No. 5010)

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