Proposed Resolution in Opposition to the Ballot Question that Would Reduce the Use and Sales Tax Rate (2018)

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Whereas, at the current rate of 6.25 percent, the state’s sales and use tax provided the Commonwealth with $6.2 billion in tax collections in fiscal 2017, nearly one-quarter of all tax collections received by state government, and is expected to increase to $6.5 billion in fiscal 2018; and
 
Whereas, a fixed portion of the sales tax is dedicated to help fund essential school building projects through the Massachusetts School Building Authority, and core public transportation services and projects through the Massachusetts Bay Transportation Authority and the Commonwealth Transportation Fund; and
 
Whereas, the majority of sales and use tax revenues are deposited in the state’s General Fund, and are necessary to fund municipal and school aid programs in the state budget, including Unrestricted General Government Aid and Chapter 70 education aid; and
 
Whereas, the proposed ballot question would decrease the sales and use tax rate from 6.25 percent to 5 percent and force an immediate reduction in state tax revenues by an estimated $1.25 billion, thereby reducing funds available to support critical programs needed to support cities and towns and strong communities, including unrestricted municipal aid, K-12 public education, school building projects, public transportation, and much more;
 
Therefore it is hereby resolved that the members of the Massachusetts Municipal Association oppose the ballot question that would reduce the sales and use tax rate to 5 percent; and
 
It is further resolved that a copy of this resolution shall be provided to the governor and members of the General Court of the Commonwealth.
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