Tax breaks in the form of rebates continue to be sought in states across the country to mitigate the higher costs of goods and services.
More than a dozen states have approved refunds for at least some filers.
Massachusetts is another state that should soon be added to the list.
Bay State legislative leaders are set to strike a deal on a tax relief package to tackle inflation. Among the relief packages sought by lawmakers is a plan to pay individual filers $250 and joint filers $500.
Single filers earning between $38,000 and $100,000 in annual income in 2021 would qualify. Co-registrants with a minimum annual income of $38,000 to $150,000 would also qualify.
Democratic leaders in both houses chose to pursue the refund option instead of relief at the fuel pump.
Their argument against a fuel tax exemption mirrors the sentiment of many other states: there is no guarantee that a fuel tax exemption would reduce prices at the pump.
“These rebates represent the Legislature’s commitment to provide immediate financial relief directly to Commonwealth residents, rather than to the big oil companies that continue to profit from economic uncertainty and international strife,” a joint statement read.
If both houses of the Massachusetts legislature reach an agreement on tax relief and it is signed into law by Gov. Charlie Baker, refunds should be given to eligible taxpayers by September 30.
The funds to cover the rebates will come from the state’s fiscal year 2022 surplus. The surplus for fiscal year 2022 is estimated at more than $3 billion.
Another round of tax refunds is on the way in Indiana.
In May, the state began sending payments of $125 to all residents, regardless of income.
The refund is a result of the state taxpayers automatic refund law. The law redirects money to residents following higher-than-expected state revenues for a fiscal year.
Governor Eric Holcomb earlier this month called for a special session to send more money to residents. He said state reserves provide an additional boost.
“It’s the quickest, fairest and most effective way to return hard-earned money to taxpayers during a time of economic hardship,” Holcomb said. “Indiana’s economy is growing, and with more than $1 billion in revenue over current projections, Hoosier taxpayers deserve to have their money returned responsibly.”
The governor is asking that each taxpayer receive $225.
The special session to address the issue is due to start on July 25.
Tax refund elsewhere
Discounts are also, or will soon be, available to at least some registrants in California, Colorado, Delaware, Georgia, Hawaii, Idaho, Illinois, Maine, New Jersey, New Mexico, New York, Caroline from the southand Virginia. Amounts range from $75 in Idaho to $1,050 in California and New York. LL