MA 'Millionaires Tax' Becomes Law, But Tweaks Possible

BOSTON, MA — Secretary of the Commonwealth William Galvin Thursday signed the state's new "millionaire's tax" into law — but he will ask state lawmakers to make changes to the language.

Voters approved the measure in November with about 52 percent in favor. The new 9 percent tax on income over $1 million will begin Jan. 1. The income tax rate will remain at 5 percent for anyone earning $999,999 and below.

Galvin said he wants lawmakers to make two changes to the law: first, exempt certain longtime homeowners from the tax when they sell their homes; and second, set up a trust for at least some of the Question 1 income dedicated solely to education.

Before the election, proponents of Question 1 said the money would be used for infrastructure projects and education. But spending decisions will ultimately be up to the Legislature, according to the language of the law.

The new income tax could generate up to $2 billion more per year in revenue, according to some estimates.