March 15, 2010

Secretary Jay Gonzales
Executive Office for Administration and Finance
State House, Room 373
Boston, MA  02133

Secretary Jeffery Mullan
Executive Office of Transportation and Construction
10 Park Plaza, Room 3170
Boston, Massachusetts, 02116

RE: March 15, 2010 Certification of MBTA Dedicated Sales Tax Revenues for the Fiscal Year Ended June 30, 2011

Dear Secretary Gonzales and Secretary Mullan:

Pursuant to Massachusetts General Laws (MGL) Chapter 10, Section 35T, paragraph b, I certify, after consultation with the Commissioner of Revenue, that the projected dedicated sales tax revenue amount for fiscal 2011 is projected to be $644,349,000.

The projected dedicated sales tax revenue amount is the amount of “monies received by the Commonwealth equal to one percent of the gross receipts of a sale as defined by the provisions of MGL chapter 64H and one percent of the sales price of a purchase as defined by the provisions of chapter 64I from that portion of the taxes imposed under the provisions of said chapters 64H and 64I as excises upon the sale and use at retail of tangible property or of services, and upon the storage, use or other consumption of  tangible property or of services, including interest thereon or penalties but not including any portion of such taxes imposed on the sale of meals as defined in paragraph (h) of section 6 of chapter 64H  The calculation of sales and meals taxes dedicated for the MBTA is  net of refunds, abatements, and amounts set aside under paragraph (b) of section 10 of chapter 152 of the acts of 1997 (the “Convention Center Portion”).

The projected dedicated sales tax amount was calculated as follows:

 

 

Fiscal Year 2011
March 15, 2010 Certification

Projected Sales and Use Tax Collections, 
Exclusive of Meals Tax


$4,027,180,000

Percentage due to the MBTA(*)        

x 16%

Projected Dedicated Sales Tax Revenue for 
FY 2011 (rounded)

$644,349,000

Base Revenue as Certified on March 1, 2010

$761,840,699

(*) As of August 1, 2009 the sales tax rate was increased from 5% to 6.25% for both regular sales and motor vehicle sales. Based on this new sales tax rate, the MBTA dedication percentage is now 16.00% (1 cent of 6.25 cents per dollar) as compared to the prior dedication percentage of 20% (1 cent of 5 cents per dollar).

Any shortfall between dedicated sales tax revenue and the base revenue certified on March 1, 2010 will be made up by quarterly transfers from the General and Highway Funds, pursuant to the MOU and Chapter 10, Section 35T(b).  Should you have any questions on the calculation of this amount, please feel free to call me.

Should you have any questions on the calculation of this amount, please feel free to call me.

Sincerely yours,

Martin J. Benison
Comptroller

Cc:     Senator Stephen C. Panagiotakos, Chairman Senate Ways and Means
          Representative Charles A. Murphy, Chairman House Ways and Means
          Timothy Cahill, Treasurer and Receiver – General, TRE
          Navjeet Bal, Commissioner of Revenue
          Matthew Gorzkowicz, Undersecretary, ANF
          Douglas Howgate, Senate Ways and Means Budget Director
          Jeita Phillips, House Ways and Means Budget Director