Outside Section 21

Stabilization Fund Transfers 2

SECTION 21.   Said chapter 29 of the General Laws is hereby further amended by striking out section 5G, as so appearing, and inserting in place thereof the following section:-

Section 5G. Not later than 4 weeks after the commissioner of revenue reports preliminary tax revenue collected for the month of June under paragraph 8 of section 6 of chapter 14 , the comptroller shall determine the amount of actual tax revenue collected in that fiscal year available for budget in funds contributing to the consolidated net surplus, after accounting for amounts in the categories identified in the third paragraph of section 5B and transfers to the Workforce Training Fund. After such determination of actual tax revenue collected and available for budget in funds contributing to the consolidated net surplus, the comptroller shall transfer to the Commonwealth Stabilization Fund an amount equal to one half of the amount by which preliminary tax revenues available for budget exceed the amount of total tax revenues anticipated in section 1A of the general appropriation act for that fiscal year in those funds, after adjusting the general appropriation act amount for amounts in the categories identified in the third paragraph of section 5B, as well as any other tax revenue transfers, tax revenue initiatives, or tax revenue reductions identified in said section 1A of the general appropriation act that affect tax revenue available for budget; provided however, that any such transfer shall be reduced by the amount of transfers to the Stabilization Fund from tax-related judgments and settlements previously made in accordance with the third paragraph of section 2H.



Summary:
This section, with the preceding section, is part of the Stabilization Fund transfer initiative. This section proposes to replace the current capital gains transfer provision that appears in section 5G of chapter 29, and to propose instead that half of any taxes collected for the budget that exceed the estimates in the enacted budget for that fiscal year be transferred to the Stabilization Fund.