The Purpose of this Technical Information Release is to update the income tax rates set out in TIR 99-19 to reflect the new tax rates enacted by the voters in the referendum passed on November 7, 2000. St. 2000, c. 343.

Reduced Tax Rates Effective for 2001 and Subsequent Years

Technical Information Release 99-19, Tax Changes in the Fiscal Year 2000 Budget, addressed, among other topics, the reduction in income tax rates enacted by the Legislature in 1999.

A majority of the voters of Massachusetts approved Ballot Question 4, reducing income tax rates, in the state election held November 7, 2000. As a result of the voters' approval, St. 2000, c. 343, section 1 amended G.L. c. 62, § 4, effective December 7, 2000 to lower the income tax rates on Part B income and Part A taxable interest and dividends.

The new tax rates on Part B taxable income and Part A taxable income consisting of interest and dividends are as follows:

for the calendar year beginning January 1, 2001: 5.6%;
for the calendar year beginning January 1, 2002: 5.3%;
for tax years beginning on or after January 1, 2003: 5.0%.

This TIR modifies TIR 99-19, Section I, B. The personal income tax rates on Part B taxable income and Part A taxable interest and dividends income published in TIR 99-19 are no longer in effect.

/s/Bernard F. Crowley, Jr.
Bernard F. Crowley, Jr.,
Acting Commissioner of Revenue

October 02, 2001

TIR 01-18