Question 5Limit on state tax revenue, with rebates
Read the full text of the measure: Information for Voters page for this question
In plain words
Caps how much tax money the state can keep each year and returns any extra to taxpayers. (sec.state.ma.us )
Before and after
| Today | If YES wins | |
|---|---|---|
| What the rule is | State law already has a revenue limit, figured with a different formula (the official summary says a YES vote "changes" the limit). Money from the surtax on incomes over $1 million is used for schools and transportation. | Each year the cap would be last year's net state revenue plus the average growth in Massachusetts wages and salaries over the last three years. Money above the cap would be refunded to taxpayers the next year. Millionaires' surtax money would count toward the cap. Starts July 1, 2027. |
Numbers from the official ballot title (ballot title ); also see
Example
Illustration only: if wages grew 4% a year on average and the state collected more than last year's revenue plus 4%, the extra would go back to taxpayers the next year. (sec.state.ma.us )
Biggest change
- Cap = prior-year net revenue plus 3-year average wage and salary growth source: sec.state.ma.us
- Extra revenue refunded the next year source: sec.state.ma.us
- Millionaires' surtax revenue counts toward the cap source: sec.state.ma.us
- Effective July 1, 2027 source: sec.state.ma.us
Who it affects most: Taxpayers; schools, cities, and towns that get state aid; state budget programs.
Cost to the state: The Executive Office of Administration and Finance says tighter limits would reduce money for the state budget, including local school and town aid, and for the rainy day (Stabilization) fund; how often refunds happen could change.
Our plain-words summary. Every line points to its source.
What your vote means
Ties the revenue limit to prior-year revenue plus wage growth and requires rebates above it.
No change to state revenue law.
Our one-line summary. The state's Information for Voters booklet has the official statements of what a YES and a NO vote would do.
Why people want it, and why others object
Why this is on the ballot
Voters put this on the ballot by signing a petition. It changes a state law, which lawmakers can later change. It passes with more YES than NO votes, and YES votes from at least 30% of all voters who cast a ballot.
- A majority of the Special Joint Committee on Initiative Petitions recommended no action; a minority recommended adopting it. source: sec.state.ma.us
Why supporters want it
- Official argument by Taxpayers for an Affordable Massachusetts: limits state revenue growth and gives refunds when the state collects more than it needs; guards against future tax increases; says it will not cut education, transportation, or health care; rising costs make refunds important. source: sec.state.ma.us
Why opponents object
- Official argument by Colette Berard, history teacher, for Protect Massachusetts' Future: a strict limit would force repeated budget cuts; towns could raise property taxes or lay off teachers and firefighters; a smaller rainy day fund would force cuts in recessions; counting surtax money would give millionaires frequent rebates; could hurt the state's bond rating. source: sec.state.ma.us
Who backs each side
- Taxpayers for an Affordable Massachusetts source: sec.state.ma.us
In each side's own words where we could find them, quoted or summarized with a link to the source. We don't endorse either side.
What you will see on your ballot
Official ballot wording, word for word (tap to open)
The official ballot title, word for word from the Secretary of the Commonwealth's Information for Voters .
Question 5: Law Proposed by Initiative Petition. State Revenue Limit & Rebate
Do you approve of a law summarized below, on which no vote was taken by the Senate or the House of Representatives before May 6, 2026?
YES
NO
Official summary by the Attorney General (tap to open)
This proposed law would change the limit on how much revenue the state can collect in a given year. The proposal would limit state revenue in a given year to the net amount of state revenue from the year before, increased by a rate equal to the average growth of wages and salaries in Massachusetts over the most recent three years. If revenue collected by the state in a given year exceeds the limit, the excess amount would be refunded to taxpayers the following year. The proposed law would include all revenue from the surtax on incomes over $1 million when calculating the revenue limit and when determining whether state revenue exceeds the limit.(sec.state.ma.us )
The provisions of the proposed law would all be effective as of July 1, 2027.
The proposed law states that, if any of its parts were declared invalid, the other parts would stay in effect.
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