June 26, 2014
Secretary Glen Shor
Executive Office of Administration and Finance
The Honorable Stephen M. Brewer
Senate Committee on Ways and Means
The Honorable Brian S. Dempsey, Chairman
House Committee on Ways and Means
RE: Interest revenue transfer and capital gains tax certification for FY2014
Dear Secretary Shor, Chairman Brewer and Chairman Dempsey:
On June 25, 2014, the Commissioner of Revenue certified to the State Comptroller’s Office that for the period February 1, 2014 through May 31, 2014 capital gains tax revenue totaled $432,600,000.00, and for FY2014 year-to-date capital gains tax revenue totaled $945,700,000.00. Section 5G of Chapter 29 of the Massachusetts General Laws requires that capital gains in excess of the fiscal year threshold be transferred to the Stabilization Fund. For FY2014 this threshold is $1,023,242,988.00. Since the total capital gains tax revenue has not exceeded this threshold, no transfer will be made.
Section 172(b) of Chapter 38 of the Acts of 2013 (the fiscal year 2014 General Appropriation Act) mandates the transfer of interest earned by the Commonwealth Stabilization Fund during FY2014 to the General Fund. Interest earned by the Stabilization Fund during FY2014 through June 26, 2014 totaled $4,740,320.61. Previously in FY2014, transfers of Stabilization Fund interest earnings of $4,287,460.08 were made to the General Fund. Therefore, a transfer of $452,860.53 from the Stabilization Fund to the General Fund also will be processed in conjunction with the Office of the State Treasurer and Receiver General.
If you have any questions regarding this letter, please contact Howard Merkowitz, Deputy Comptroller, at (617) 973-2602.
Martin J. Benison
Attachment #1 : Section 5G of Chapter 29 of the MGL
Attachment #2 : Chapter 55 of the Acts of 2013
Attachment #3 : Section 172(b) of Chapter 38 of the Acts of 2013
Attachment #4 : Stabilization Fund Balance Spreadsheet
Amy Pitter, Commissioner, Department of Revenue
Judy Zeprun Kalman, Deputy Attorney General, Attorney General’s Office
Ashley Groffenberger, Budget Director, House Ways and Means
Douglas Howgate, Budget Director, Senate Ways and Means
James MacDonald, First Deputy Treasurer, Treasurer’s Office
Kazim Ozyurt, Director, Office of Tax Policy Analysis, Department of Revenue
Howard Merkowitz, Deputy Comptroller, Office of the Comptroller
BJ Trivedi, FRAB Director, Office of the Comptroller
Julia Burns, GAB Director, Office of the Comptroller
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