Governor Deval Patrick's Budget Recommendation - House 2 Fiscal Year 2009

Governor's Budget Recommendation FY 2009

Executive Office of Transportation and Public Works


Online Advertising of State Procurements

SECTION 4.   Chapter 7 of the General Laws is hereby amended by inserting after section 22 the following section:-
Section 22 1/2. Notwithstanding any general or special law to the contrary, whenever a law requires a state agency, department, office, commission or authority to publish in a newspaper a notice of a public procurement or solicitation, it shall be sufficient instead to post that notice on a public government internet website, including the commonwealth's electronic bidding website.

 

Railroad Bridge Safety

SECTION 9.   Section 12F of chapter 25, as appearing in the 2006 Official Edition, is hereby amended by inserting after the second paragraph the following paragraph:-
The commission may make an assessment against each railroad corporation or railway company, based upon the intrastate operating revenues, as shown in the annual report of each of those companies to the transportation division. Each railroad corporation and railway company shall annually report by March 31 its intrastate operating revenues for the previous calendar year to the transportation division. The assessments shall be apportioned according to railroad corporation intrastate operating revenues, to produce an annual amount of not more than $500,000, as the commission shall annually determine and certify as sufficient to reimburse the commonwealth for funds appropriated by the general court for the operation of the transportation division related to railroad bridge inspections under section 83 of chapter 159, including the costs of fringe benefits and indirect costs as established by the commission. The funds may be used to compensate consultants for the purpose of railroad bridge inspections. Each company shall pay the amount assessed against it within 30 days after the date of the notice of assessment from the department. Such assessments shall be collected by the department and credited to the General Fund. Any funds unexpended in any fiscal year for the purposes for which such assessments were made shall be credited against the assessment to be made in the following fiscal year and the assessment in the following fiscal year shall be reduced by any such unexpended amount.

 

Tax Revenue Enforcement Efficiencies

SECTION 13.   (A) Section 15 of chapter 60 of the General Laws, as appearing in the 2006 Official Edition, is hereby amended by striking out, in line 5, the words "five dollars" and inserting in place thereof the following words:- not more than $30.

(B) Chapter 62B of the General Laws is hereby amended by inserting after section 13, as so appearing, the following section:-
          Section 13A. The commissioner may require a taxpayer, or a person paying, crediting, or allocating an amount to a taxpayer, to make estimated tax payments on amounts the taxpayer is reasonably likely to receive. The commissioner may require a minimum estimated tax payment, and may require payment on or before the date of receipt of income. The commissioner may, for example, exercise this authority to require a nonresident taxpayer to estimate and pay, on or before the time of sale, the income tax liability on the gain from the sale or transfer of real property in the commonwealth. The commissioner may issue regulations governing the administration of this section. In the event of a sale, transfer, or disposition of property, a lien in the amount of any required estimated payment shall arise with regard to the property, to the extent provided by regulation, if such a required estimated tax payment is not timely made.

(C) Section 33 of chapter 62C of the General Laws, as so appearing, is hereby amended by striking out, in line 11 and line 19, the words "one-half of ".

(D) Section 47A of said chapter 62C, as so appearing, is hereby amended by striking out subsection (d) and inserting in place thereof the following 2 subsections:-
          (d) If the commissioner determines from the information furnished pursuant to subsections (a), (b) and (c), or otherwise, that any person who holds a license or certificate of authority issued by any such agency or who has agreed to furnish goods, services or real estate space to any such agency has neglected or refused to file any returns or to pay any tax required under this chapter and that such person has not filed in good faith a pending application for abatement of such tax or a pending petition before the appellate tax board contesting such tax or entered a payment agreement with which the taxpayer is fully compliant, or has been penalized pursuant to section 9 of chapter 62E for failure to comply with the provisions of said chapter 62E relating to reporting of employees and contractors, or has been penalized pursuant to paragraph (3) of subsection (f) of section 12 of chapter 119A for failure to comply with the provisions of said chapter 119A relating to withholding and remitting child support, the commissioner shall so notify such agency and such person in writing. Upon the written request of the commissioner, the agency, department, board, commission, division, authority, district or other agency of the commonwealth, shall promptly revoke or suspend that license or certificate of authority. Any license or certificate of authority suspended or revoked under this section shall not be reissued or renewed until the agency receives a certificate issued by the commissioner that the licensee is in good standing with respect to all returns due and taxes payable to the commissioner as of the date of issuance of the certificate, including all taxes and returns referenced in the initial notification or, if the licensee has been penalized for failure to comply with the provisions relating to reporting of employees and contractors under chapter 62E or withholding and remitting child support under chapter 119A, a certificate issued by the commissioner that the licensee is in compliance with those provisions.
          (e) Where a license revocation, suspension or non-renewal is based upon nonpayment of an assessed tax administered under this chapter, the licensee's sole right of appeal and to a hearing shall be pursuant to and within the time limitations of this chapter and not pursuant to chapter 30A. The commissioner shall give the licensee not less than 30 days notice of any proposed action, during which the licensee may enter into a payment agreement with the commissioner under mutually agreeable terms or may file a good faith abatement application within the time periods determined under section 37. Such an abatement application shall stay a proposed license revocation, suspension, or non-renewal until the amount of disputed tax due is finally determined. A licensee who is beyond the time limitations in section 37 but who disputes that he is liable for the assessment and is unable to resolve that issue with the commissioner during the 30-day period may appeal the proposed revocation, suspension or non-renewal by filing a civil action under section 14 of chapter 30A. The scope of this appeal shall be limited to assertions of mistake or verification of payments made and shall not include determination or redetermination of the proper amount of tax assessed or any other issues appropriately raised through a timely filed abatement under section 37. Any stay of the proposed revocation, suspension, or non-renewal pending resolution of this appeal shall be within the discretion of the court.

(E) Said chapter 62C of the General Laws is hereby further amended by inserting after said section 47A, as so appearing, the following section:-
          Section 47B. (a) If the commissioner determines that any person who holds a driver's license, learner's permit, right to operate a motor vehicle, or certificate of motor vehicle registration has neglected or refused to file any returns or to pay any tax required under this chapter and that the person has not filed in good faith a pending application for abatement of such tax or a pending petition before the appellate tax board contesting such tax or entered a payment agreement with which the taxpayer is fully compliant, the commissioner shall so notify the registry of motor vehicles and the person in writing. Upon the written request of the commissioner, the registry shall promptly suspend or revoke or prohibit issuance or renewal of the license, learner's permit, right to operate a motor vehicle, or certificate of motor vehicle registration of the taxpayer. Any license, learner's permit, right to operate a motor vehicle, or certificate of motor vehicle registration suspended or revoked under this section shall not be reissued or renewed until the registry receives a certificate issued by the commissioner that the licensee is in good standing with respect to any and all returns due and taxes payable to the commissioner as of the date of issuance of the certificate, including all taxes and returns referenced in the initial notification.
          (b) Where a license revocation, suspension or non-renewal is based upon nonpayment of an assessed tax administered under this chapter, the licensee's sole right of appeal and to a hearing shall be pursuant to and within the time limitations of this chapter and not pursuant to chapter 30A. The commissioner shall give the licensee not less than 30 days notice of any proposed action, during which the licensee may enter into a payment agreement with the commissioner under mutually agreeable terms or may file a good faith abatement application within the time periods determined under section 37. Such an abatement application shall stay a proposed license revocation, suspension, or non-renewal until the amount of disputed tax due is finally determined. A licensee who is beyond the time limitations in section 37 but who disputes that he is liable for the assessment and is unable to resolve that issue with the commissioner during the 30-day period may appeal the proposed revocation, suspension or non-renewal by filing a civil action as provided in section 14 of chapter 30A. The scope of this appeal shall be limited to assertions of mistake or verification of payments made and shall not include determination or redetermination of the proper amount of tax assessed or any other issues appropriately raised through a timely filed abatement under section 37. Any stay of the proposed revocation, suspension, or non-renewal pending resolution of this appeal shall be within the discretion of the court.

(F) Section 49A of said chapter 62C, as so appearing, is hereby amended by adding the following subsection:
          (f) Where a license revocation, suspension or non-renewal is based upon nonpayment of an assessed tax administered under this chapter, the licensee's sole right of appeal and to a hearing shall be pursuant to and within the time limitations of this chapter and not pursuant to chapter 30A. The commissioner shall give the licensee not less than 30 days notice of any proposed action, during which the licensee may enter into a payment agreement with the commissioner under mutually agreeable terms or may file a good faith abatement application within the time periods determined under section 37. Such an abatement application shall stay a proposed license revocation, suspension, or non-renewal until the amount of disputed tax due is finally determined. A licensee who is beyond the time limitations in section 37 but who disputes that he is liable for the assessment and is unable to resolve that issue with the commissioner during the 30-day period may appeal the proposed revocation, suspension or non-renewal by filing a civil action as provided in section 14 of chapter 30A. The scope of this appeal shall be limited to assertions of mistake or verification of payments made and shall not include determination or redetermination of the proper amount of tax assessed or any other issues appropriately raised through a timely filed abatement under section 37. Any stay of the proposed revocation, suspension, or non-renewal pending resolution of this appeal shall be within the discretion of the court.

(G) Section 50 of said chapter 62C, as so appearing, is hereby amended by striking out, in line 22, the words "Notwithstanding section 65, the" and inserting in place thereof the following word:- The.

(H) Section 65 of said chapter 62C, as so appearing, is hereby amended by striking out the first paragraph and inserting in its place the following paragraph:-
          Taxes shall be collected: (i) within 10 years after the assessment of the tax; (ii) within any further period after that 10-year period during which the taxes remain unpaid but only against any real or personal property of the taxpayer to which a tax lien has attached and for which a notice of lien has been filed or recorded under section 50 in favor of the commonwealth in accordance with applicable state or federal law within 10 years after the assessment of the tax; (iii) before the expiration of any period of collection agreed upon in writing by the commissioner and the taxpayer before the expiration of that 10-year period; or, (iv) if there is a release of levy under section 64 after that 10-year period, then before that release. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon. When any question relative to such taxes is pending before any agency or court at the end of that 10-year period, the commissioner's right to collect any tax due shall continue until 1 year after the final determination of that question.

(I) Chapter 63B of the General Laws is hereby amended by inserting after section 2, as so appearing, the following section:-
          Section 2A. The commissioner may require a taxpayer, or a person paying, crediting, or allocating an amount to a taxpayer, to make estimated tax payments on amounts the taxpayer is reasonably likely to receive. The commissioner may require a minimum estimated tax payment, and may require payment on or before the date of receipt of income. The commissioner may, for example, exercise this authority to require a nonresident taxpayer to estimate and pay, on or before the time of sale, the tax liability on the gain from the sale or transfer of real property in the commonwealth. The commissioner may issue regulations governing the administration of this section. In the event of a sale, transfer, or disposition of property, a lien in the amount of any required estimated payment shall arise with regard to the property, to the extent provided by regulation, if such a required estimated tax payment is not timely made.

(J) Chapter 64H of the General Laws is hereby amended by inserting after section 3, as so appearing, the following section:-
          Section 3A. (a) Every manufacturer, wholesaler, or unclassified acquirer, as defined in chapter 64C, doing business in the commonwealth, or any other person doing business in the commonwealth, selling tobacco products, including cigarettes, cigars, smokeless tobacco and smoking tobacco, to others for resale inthe commonwealth, shall pay, as a prepayment for the tax imposed by this chapter, a tax on tobacco products that will be held for retail sale in the commonwealth. The tax shall be computed on each sale of tobacco products by multiplying the tax rate set by this chapter by the wholesale sales price at which such manufacturer, wholesaler, unclassified acquirer or other person sells the tobacco products. The tax imposed by this section shall be paid at the same time and in the same manner as the tax imposed by section 2. Any manufacturer, wholesaler, unclassified acquirer or other person prepaying the tax shall, with respect to such prepayment, be a vendor for purposes of section 1 of this chapter and section 16 of chapter 62C, shall file returns and pay over tax accordingly, and shall separately state on each customer invoice or other written record, as prescribed by the commissioner, the amount of prepaid sales tax charged.
          (b) Every person selling tobacco products at retail in the commonwealth who is required to pay the tax imposed by this chapter shall be allowed a credit in the amount of the prepayment against the total amount of tax it is required to pay over to the commissioner under this chapter. Every such person must maintain invoices and other records substantiating the amount of tax prepaid.
          (c) Chapter 64I shall apply to the extent that the tax under this section is not paid over to the commissioner by any of the persons mentioned in the first or second paragraph of this section. All taxes imposed by this section are conclusively presumed to be a direct tax on the retail consumer, precollected for the purpose of convenience and facility only.
          (d) The commissioner may adopt regulations to implement this section, which regulations shall include a provision to prevent the payment of tax by more than one taxpayer.

(K) Section 33 of chapter 64H, as so appearing, is hereby amended by adding the following sentence:- For purposes of this section, a vendor shall include any person who has made a prepayment of tax under section 3A.

(L) Section 34 of chapter 64I, as so appearing, is hereby amended by adding the following sentence:- For purposes of this section, a vendor shall include any person who has made a prepayment of tax under section 3A of chapter 64H.

(M) Subsections (J), (K) and (L) shall apply to sales of tobacco products occurring on or after September 1, 2008, by manufacturers, wholesalers, unclassified acquirers and other persons specified in subsection (J).

 

Certain Revenues to Transportation Fund

SECTION 16.   (A) Section 2O of chapter 29 of the General Laws is hereby repealed.

(B) Chapter 64A of the General Laws is hereby amended by striking out section 13, as appearing in the 2006 Official Edition, and inserting in place thereof the following section:-
Section 13. All sums received from the excise imposed on aviation fuel, and related penalties, forfeitures, interest, costs of suits and fines, less all amounts for reimbursement under sections 7 and 7A, shall be credited to the Transportation Fund and may be used for airport development projects approved and carried out at airports and landing facilities under 49 U.S.C. App. section 2210; and all other sums received under the excise imposed in section 4, and relative penalties, forfeitures, interest, costs of suits and fines, less all amounts for reimbursement under sections 7 and 7A, shall be credited as follows:
(a) 99.85 per cent shall be credited to the Transportation Fund to be used for transportation-related purposes, and
(b) 0.15 per cent shall be credited to the Inland Fisheries and Game Fund, established by section 2C of chapter 131.

(C) Section 34 of chapter 90 of the General Laws, as so appearing, is hereby amended by striking out , in lines 13, 20 both times, 44 and 93, the word "Highway" and inserting in place thereof, in each instance, the following word:- Transportation.

(D) All purposes for which funds could have been expended under section 2O of chapter 29 of the General Laws, repealed by subsection (A), shall be purposes for which funds may be expended from the Transportation Fund established by section 34 of chapter 90 of the General Laws, as amended by subsection (C). Any balance in the Infrastructure Fund on the effective date of this section shall be credited to the Transportation Fund. The repeal of said section 2O of said chapter 29 shall not affect in any way the obligations of the commonwealth relating to special obligation revenue bonds issued under that section, and the pledge of pledged funds, as defined in said section 2O of said chapter 29 to secure the payment of such bonds is hereby ratified and confirmed in all respects.

(E) Whenever the name "Highway Fund" or "Infrastructure Fund" appears in any general or special law, regulation, contract or other document, it shall mean the Transportation Fund on and after the effective date of this section.

 

Repeal Sales Tax Exemptions for Aircraft, Parts and Certain Pesticides

SECTION 17.   (A) The definition of "tangible personal property" in section 1 of chapter 64H of the General Laws, as appearing in the 2006 Official Edition, is hereby amended by adding the following sentence:- A transfer of an interest in an aircraft may be considered a transfer of tangible personal property under rules determined by the commissioner.

(B) Subsection (p) of section 6 of chapter 64H of the General Laws, as so appearing, is hereby amended by striking out clause (3) and inserting in place thereof the following clause:-
(3) sales of fertilizer, including ground limestone, hydrated lime, seed inoculants and plant hormones, as well as other substances commonly regarded in the same category and for the same use, but not including any sales of pesticides, including insecticides, herbicides, fungicides, miticides and all materials registered with the Environmental Protection Agency as pesticides under Federal Insecticide, Fungicide and Rodenticide Act as well as other pesticides commonly regarded in the same category and for the same purpose except when purchased by a person licensed under chapter 132B or otherwise exempt under paragraph (r).

(C) Said section 6 of chapter 64H of the General Laws, as amended by section 12 of chapter 63 of the acts of 2007, is hereby further amended by striking out paragraphs (uu) and (vv).

(D) Section 7 of chapter 64I of the General Laws, as appearing in the 2006 Official Edition, is hereby amended by striking out paragraphs (d) and (e).

 

Transfers Between Operating and Capital Funds

SECTION 28.   (a) Whenever the commonwealth has borrowed funds as authorized by law to fund the acquisition of equipment that would have otherwise been funded under an item of appropriation in section 2, the secretary of administration and finance may authorize the transfer of funds from the item of appropriation in section 2 from which the equipment acquisition would have been funded to any other item of appropriation for the purpose of funding personnel or other operating-related expenses that would have otherwise been funded in the fiscal year 2009 capital budget from the proceeds of bonds. The secretary may establish an appropriation account to receive this transfer if none exists under section 2. Any amount transferred under this section shall not exceed the cost of the related equipment acquisition, and the aggregate amount of all such transfers shall not exceed $50,000,000.
          (b) Before making any transfer authorized by this section, the secretary of administration and finance shall submit a transfer report and certification to the house and senate committees on ways and means. The report and certification shall include the following: (1) a schedule showing the cost of equipment acquisition that would have been funded from an item of appropriation in section 2, the item of appropriation from which the equipment would have been funded and the bond authorization against which bonds may be issued to fund the acquisition of the equipment; (2) a schedule showing the cost of all personnel and other operating expenses that would have been funded from the fiscal year 2009 capital budget, identification of each of the agencies that pay the related expenses, the item in the capital budget and the bond authorization from which the personnel or operating expenses would have been funded, and the item of appropriation in section 2 from which the personnel or operating expenses will be funded; (3) a schedule of each amount that will be transferred from one item of appropriation in section 2 to another under subsection (a) in order to effectuate the transactions described in clauses (1) and (2); and (4) a certification of the secretary confirming that the equipment will be acquired in fiscal year 2009 with bond proceeds pursuant to the fiscal year 2009 capital budget and the bond authorization identified in clause (1).

 
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