Massachusetts Question 5 tax revenue cap proposal faces tight polling

Massachusetts voters are considering Question 5, a ballot measure that would tighten the state’s existing tax revenue cap. Under the current 1986 law, any tax revenue exceeding a limit based on the previous year's maximum allowed collection must be returned to taxpayers. This law has only been triggered twice, most recently in 2022 following a post-pandemic stock market boom.

The proposed change, scheduled to take effect July 1, 2027, would recalculate the cap based on the actual tax revenue collected in the previous fiscal year rather than the maximum allowed. Additionally, the measure would include income tax revenue from the “millionaire’s tax” in the calculation. Supporters, including Taxpayers for an Affordable Massachusetts and the Massachusetts Opportunity Alliance, argue the change would limit government spending and encourage better fiscal planning.

A recent Suffolk University/Boston Globe poll indicates the measure is in a tight race. Approximately 40% of surveyed voters support the proposal, compared to 38% who oppose it, with 20% remaining undecided.