Comptroller Fiscal Year Memo Letter Head

July 25, 2012

Jay Gonzalez, Secretary for Administration and Finance
Commonwealth of Massachusetts
State House, Room 373
Boston, MA 02133

Representative Brian S. Dempsey, Chairman
House Ways and Means Committee
State House, Room 243
Boston, MA 02133

Senator Stephen M. Brewer, Chairman
Senate Ways and Means Committee
State House, Room 212
Boston, MA 02133

Re:  Capital Gains Tax Revenues

Dear Secretary Gonzalez, Chairman Dempsey, and Chairman Brewer:

Pursuant to certification received from the Commissioner of Revenue in accordance with Section 5G of Chapter 29 of the General Laws, the tax revenue estimated to have been collected during FY2012 (July 1, 2011 through June 30, 2012) from capital gains income was $915.5 million.  As the tax revenues estimated to have been collected from capital gains income do not exceed $1,000,000,000 in fiscal year 2012, no transfer will be made to the Stabilization Fund for the fiscal year.

Should you have any questions, please feel free to contact me.

Sincerely,

Martin J. Benison
Comptroller

cc:      
Michael Esmond, Budget Director            
Amy Pitter, Commissioner of Revenue            
James MacDonald, 1st Deputy Treasurer
Howard Merkowitz, Deputy Comptroller

 

Chapter 131 of the Acts of 2010

SECTION 19. Said chapter 29 is hereby further amended by inserting after section 5F the following section:-

Section 5G. The department of revenue shall report by November 30 to the state comptroller, the executive office for administration and finance and the house and senate committees on ways and means tax revenues estimated to have been collected during the preceding fiscal year from capital gains income. After each quarter, the department of revenue shall certify to the state comptroller the amount of tax revenues estimated to have been collected during the preceding quarter from capital gains income. If the department of revenue certifies that the amount of tax revenues estimated to have been collected from capital gains income exceeds $1,000,000,000 in a fiscal year, the comptroller shall transfer quarterly any such amount that exceeds $1,000,000,000 collected during that fiscal year to the Commonwealth Stabilization Fund established by section 2H. This transfer shall be made before the certification of the consolidated net surplus for the previous fiscal year as provided in section 5C. Five per cent of any amount transferred to the Commonwealth Stabilization Fund under this section shall then be transferred from the Commonwealth Stabilization Fund to the State Retiree Benefits Trust Fund established in section 24 of chapter 32A.