2006 Massachusetts Code - Chapter 29 — Section 2I. Tax reduction fund.

Section 2I. There shall be established and set up on the books of the commonwealth a separate fund to be known as the Tax Reduction Fund, consisting of amounts transferred to the fund in accordance with the provisions of section two H and of section six of chapter twenty-nine B and income derived from the investment of amounts so transferred. The purpose of the fund shall be to maintain a reserve which shall be used only to reduce personal income taxes as provided herein.

On or before October 31, the secretary for administration and finance shall certify to the governor the total amount in the Tax Reduction Fund as shown in the financial report of the comptroller for the preceding fiscal year. A temporary increase in the amounts of the personal exemption allowable on the income tax shall be provided, subject to appropriation, for the taxable year ending on the succeeding December thirty-first to the extent that the amount in the Tax Reduction Fund equals an integer multiple of five percent of the amount of the personal income taxes which will not be collected for said taxable year on account of said personal exemptions. Said secretary for administration and finance shall recommend to the commissioner of revenue the amount of the temporary increase, of any, in said personal exemptions for said taxable year. The comptroller shall transfer from the Tax Reduction Fund forty percent of the amount equal to said integer multiple of five percent of the amounts not collected due to said personal exemptions to the Local Aid Fund, and sixty percent of said amount to the General Fund.