The Commonwealth of Massachusetts' FY2019 Budget Process for ACEC/MA Members

ACEC/MA Resource Page on the FY2019 Budget Process

(updated as of  January 24, 2018)

Massachusetts government is funded on a fiscal year basis. Fiscal Year 2019 runs from July 1, 2018 - June 30, 2019. This page will give you updates on the FY2019 budget process. This page lists newest actions first.

Link to House 2, the Governor's FY2019 Budget Proposal
January 24, 2018:  Governor Baker released his proposed FY18 budget which totaled $40.5 Billion and boosts state spending by $1.655 Billion while also calling for reforms to the health insurance market and tax policy changes. This is the first budget in state history to exceed the $40 billion mark and relies on a forecast of $27 billion in tax collections next year and an additional  $187 million in taxes via a series of  tax modernization proposals.

The Baker-Polito Administration budget proposal for Fiscal Year 2019 (FY19), is known as “House 2.” 

Main Budget Website for House 2
The Governor's Budget Message

Here are several items of interest to ACEC/MA Members and we'll add more in the next few days..
Executive Summary

Room Occupancy Tax Changes 1
http://budget.digital.mass.gov/bb/h1/fy19h1/os_19/h32.htm
Summary:
This collection of proposed amendments to Chapter 64G will level the playing field in the accommodations industry by obligating those individuals or businesses who are running hotel-like businesses to collect and remit the room occupancy tax. The existing occupancy tax (state level of 5.7%) will be applied to any provider of transient accommodations who provides 150 days or more of accommodation in a given calendar year. Such property operators would be required to register with DOR, and to collect and remit occupancy tax in the following calendar year. The amendments would also authorize an intermediary to collect and remit the occupancy tax on behalf of an operator under an agreement with the Commissioner of Revenue. In addition, under a separate section, the Commissioner of Revenue would be authorized to enter into agreements with intermediaries serving the transient accommodation market, for the collection of occupancy tax on behalf of all property owners the intermediary represents.

Room Occupancy Tax Changes 2
SECTION 59.   Notwithstanding any provision of chapter 64G, an intermediary as defined in section 1 of chapter 64G who enters into an agreement with the commissioner under section 10 of said chapter 64G may treat any accommodation for which the intermediary provides services as an occupancy subject to the excise under said chapter 64G, collecting and remitting payments under chapters 62C and 64G and section 9 of chapter 152 of the acts of 1997, as amended by section 2 through 4 of chapter 45 of the acts of 2001, accordingly, under conditions specified by the commissioner and agreed to by the intermediary in the agreement under said section 10 of said chapter 64G.

Summary:
This section authorizes the Commissioner of Revenue to enter into agreements with intermediaries serving the transient accommodation market, for the collection of occupancy tax on behalf of all property owners the intermediary may represent.

MBTA Capital Budget
SECTION 48.   Section 203 of chapter 46 of the acts of 2015 is hereby amended by striking out the words "which facilitate the transfer of all employees of the authority from the capital budget to the operating budget" and inserting in place thereof the following words:- which facilitate the funding of costs incurred by the authority from the capital budget or the operating budget, in accordance with government accounting standards and applicable state finance and federal law.

Summary:
This section would permit the MBTA to keep the costs of employees who work on the design and construction of capital projects on the capital budget, consistent with government accounting standards and with federal reporting requirements for capital labor.

Gaming Revenues
SECTION 56.   Notwithstanding any general or special law to the contrary, in fiscal year 2019, the amounts of category 1 gaming revenue specified in subclauses (i) and (j) of clause (2) of section 59 of chapter 23K of the General Laws shall be transferred as follows: 15 per cent specified in said subclause (i) shall be credited to the Commonwealth Transportation Fund established pursuant to section 2ZZZ of chapter 29 of the General Laws; and 10 per cent specified in said subclause (j) shall be credited to the Debt and Long-Term Liability Reduction Trust Fund established pursuant to section 2WWWW of said chapter 29.

Summary:
This section directs category 1 gaming revenue specified for transportation infrastructure and development and debt reduction purposes to the Commonwealth Transportation Fund and a newly created Debt and Long-Term Liability Reduction Trust Fund .