Section 10 Surtax Implementation 5

Section 4 of chapter 62 of the General Laws, as so appearing, is hereby amended by adding the following paragraph:-

(d) Where the sum of Part A taxable income, Part B taxable income, and Part C taxable income exceeds $1,000,000 in a taxable year, the portion of such taxable income exceeding $1,000,000 shall be taxed at the rate or rates specified in paragraphs (a) through (c) of this section plus an additional 4 percentage points. In determining such sum, any negative amount or loss in any Part of taxable income may not be applied to reduce income in any other Part or otherwise be applied to reduce such sum. The $1,000,000 taxable income threshold referenced in this paragraph shall be annually subject to the cost-of-living adjustment as provided by subsection (f) of section one of the federal Internal Revenue Code. The commissioner may promulgate regulations or issue other guidance as necessary or appropriate to implement this paragraph.

This section, along with five others, formally incorporates the 4% surtax into the Massachusetts General Laws and establishes the Education and Transportation Fund for deposit of surtax revenues.