State Bill of the Month — July 2023: Massachusetts H.2700

The Taxpayers Protection Alliance’s (TPA) State Bill of the Month for July 2023 is H.2700, an act providing for Property Tax Relief for Small Business Owners, introduced by Reps. Bruce J. Ayers (Mass.-1) and Adam Scanlon (MA-14). This legislation would allow small business owners to apply for a property tax exemption of up to 10 percent of all commercial properties and their averaged assessed value.

Background:

States are in a greater position to attract local investment and other businesses if they maintain competitive tax rates. Specifically, this is possible if states avoid harmful tax rates on tangible and intangible property. Tax rates are typically higher on commercial property than they are compared to residential property.

According to the Tax Foundations 2023 State Business Tax Climate Index, Massachusetts is ranked 46^th in property taxes among the 50 states. Massachusetts Governor Maura Healey (D) introduced a tax relief package earlier this year for the 2024 state budget. The budget aims to reform the Massachusetts estate tax and short-term capital gains tax, the most harmful tax policies. Governor Healey has referenced the Bay State’s poor tax competitiveness and has insisted that tax reforms will make Massachusetts a more attractive place to prosper.

In the Massachusetts Legislature, more work is being done by legislators to reduce the overall tax burden on citizens.

H.2700:

H.2700 would allow small business owners to seek up to a 10 percent deduction in their property taxes on all applicable commercial properties, if their average assessed value is below $1 million. This is an immediate improvement in one of the most burdensome states for property taxes. This policy will put more money in the pockets of Massachusetts business owners.

It is for these reasons, among others, that TPA is proud to make the H.2700, an act providing for Property Tax Relief for Small Business Owners, introduced by Reps. Bruce J. Ayers (MA-1) and Adam Scanlon (MA-14), its Bill of the Month for July 2023