<< Return Home

The Massachusetts Nonprofit Network has taken a position AGAINST the following ballot initiatives:

Massachusetts Sales Tax Relief Act (HB 4456)

The law would reduce the state sales and use tax rates (which were 6.25% as of September 2009) to 3% as of Jan. 1, 2011. The law provides that if the 3% rates would not produce enough revenues to satisfy any lawful pledge of sales and use tax revenues in connection with any bond, note or other contractual obligation, then the rates would instead be reduced to the lowest level allowed by the law.

REASONS AGAINST THE ROLL BACK:

• It could potentially damage state fiscal health if the measure is enacted, and an estimated $2 billion in revenue would be lost.
• This cut would not be sustainable.
• Communities would be tasked to make up the shortfall.
• With the current state of the economy, it is a bad time to make sales tax cuts that could limit programs and eliminate jobs.
  
  

Massachusetts No Sales Tax for Alcohol Initiative (HB 4454)

Massachusetts State Legislature eliminated a sales tax exemption for alcohol sold in liquor stores. This measure would restore that exemption.

REASONS AGAINST REMOVING SALES TAX ON BEER AND ALCOHOL:

• $80 million a year in new state revenue is estimated to be collected as a result of this law
• Revenue could offset cuts in services for disadvantaged and $4 million is planned for summer jobs for at-risk youth, $5 million for workforce training, $6 million for regional tourist councils, $36 million for special education, and $10 million for rental housing assistance to enable 1,700 families to stay in their homes. These funds would need to be eliminated by a yes vote on this question.
  
  

Repeal 40B (HB 4455)

40B, the comprehensive permit law, was passed in 1969. It allows developers who include a small percentage of multi unit affordable housing (20% for rental/ 25% for owner occupied) to be exempt from local zoning and to be able to appeal local denials or restrictions to a state-run “Housing Appeals Committee” (HAC).

REASONS AGAINST REPEAL

• An estimated 26,000 to 58,000 affordable housing units have been created thanks to the law.
• Massachusetts ranks among the most expensive in the nation for home buyers and renters.
• In order to be exempt for 40B, each community needs to have at least 10 percent of its housing stock defined as affordable.
• Last fall a total of 51 municipalities met the 10 percent standard.
• These construction projects create jobs.

Please note: these initiatives do not currently have numbers assigned to them; the Secretary of State’s office assigns these over the summer.