More than 40 referendum questions have been submitted to the Massachusetts Secretary of State, with two tax-focused initiatives standing out for small business owners. The first proposal would gradually reduce the state income tax rate from 5% to 4% over three years, with decreases scheduled for January 1 in each year from 2027 to 2029. This change could benefit many small business owners who report income as individuals.
Another ballot question seeks to revise the state’s Chapter 62F law, which sets a cap on state tax collections and returns excess revenue to taxpayers. The law, enacted in 1986, has only been triggered twice—in 1987 and in fiscal year 2022, when taxpayers received refunds equal to about 14% of their personal income tax liabilities. The proposed revision would require that revenue generated by the so-called millionaire’s tax be included in calculations that determine whether refunds are issued, potentially resulting in more frequent taxpayer rebates.
“NFIB will reach out next month via special ballot to gauge whether members are in favor of these two questions.”
Other filed ballot questions cover topics such as sales taxes, retail crime, and energy bills. NFIB stated it will continue monitoring all proposals that could affect small businesses.
