Massachusetts Change State Tax Revenue Limit Initiative (2026)
| Massachusetts Change State Tax Revenue Limit Initiative | |
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| Election date |
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| Topic Revenue and spending limits |
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| Status Certified to the legislature |
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| Type Indirect initiated state statute |
Origin |
The Massachusetts Change State Tax Revenue Limit Initiative may be on the ballot in Massachusetts as an indirect initiated state statute on November 3, 2026.
Overview
What would the ballot initiative do?
- See also: Text of measure
The ballot initiative would change the method of calculating the state tax revenue limit.[1] As of 2026, Massachusetts has a state tax revenue limit that sets the maximum amount of tax revenue the state can collect in a given tax year.[2] Any tax revenue collected by the state over the limit must be refunded to taxpayers the following year. The ballot initiative would change the method of calculating the limit so that it is equal to the sum of:[1]
- the net amount of state revenue from the year prior, and
- the average growth of wages and salaries in Massachusetts over the past three years.
As of 2026, the state tax revenue limit is equal to the sum of:[2]
- the state tax revenue limit for the prior tax year, and
- the average growth of wages and salaries in Massachusetts over the past three years.
In effect, the initiative would result in a decrease potential state tax revenue limit each year compared to the current system of calculating the limit, because the new limit would be calculated based on the actual revenue collected by the state instead of the maximum amount of revenue the state could have collected.[3]
The initiative would also explicitly add income tax revenue collected under Section 2BBBBBB of Chapter 29 of Massachusetts law to the state's definition of State Tax Revenue, thus using that revenue to calculate the state tax revenue limit. That section implements an additional 4% tax on annual income that is greater than $1,000,000.[4] The additional income tax rate, sometimes referred to as the millionaire's tax, was implemented when voters approved Question 1 in 2022.[5] As of 2026, the revenue collected from the millionaire's tax is not included in the legal definition of State Tax Revenue and is not generally used to calculate the state tax revenue limit.
Text of measure
Full text
The full text of the ballot measure can be found here.
Support
Supporters
Organizations
- Massachusetts Competitive Partnership
- Massachusetts Fiscal Alliance
- Massachusetts High Technology Council
- National Federation of Independent Business
- Pioneer Institute
- Retailers Association of Massachusetts
Arguments
Opposition
Opponents
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Arguments
You can share campaign information or arguments, along with source links for this information, at editor@ballotpedia.org.
Background
Question 3 (1986)
In 1986, Massachusetts voters decided Question 3, which, among other changes to the state tax code, implemented the state tax revenue limit for the first time and calculated the limit as the sum of the state tax revenue limit for the prior tax year and the average growth of wages and salaries in Massachusetts over the past three years. The measure was proposed and sponsored by the Massachusetts High Tech Council and Citizens for Limited Taxation.[3][6] Voters approved the measure, with 54.4% voting yes.
Between 1986 and 2025, the state tax revenue limit has been exceeded twice, resulting in refunds of revenue to taxpayers.[3]
Question 1 (2022)
In 2022, 52.26% of Massachusetts voters approved Question 1. The constitutional amendment created an additional 4% tax on the portion of income above $1 million for the purpose of providing funds for public education, roads and bridges, and public transportation. The tax is levied in addition to the state's 5% flat income tax, for a total tax rate of 9% on income above $1 million. The amendment also authorized the $1 million threshold to be adjusted according to any changes in the cost of living in Massachusetts using the same method used to establish federal income brackets. The tax took effect on January 1, 2023.
Tax revenue limits in the United States
As of 2025, Massachusetts is one of 19 states with tax revenue limits.[3][7] Additionally, it is one of eight states that have a tax revenue limit and do not have a state expenditure limit.[7]
Path to the ballot
Process in Massachusetts
An indirect initiated state statute is a citizen-initiated ballot measure that amends state statute. There are nine (9) states that allow citizens to initiate indirect state statutes.
While a direct initiative is placed on the ballot once supporters file the required number of valid signatures, an indirect initiative is first presented to the state legislature. Legislators have a certain number of days, depending on the state, to adopt the initiative into law. Should legislators take no action or reject the initiative, the initiative is put on the ballot for voters to decide.
In Massachusetts, the number of signatures required for an indirect initiated state statute is equal to 3% of the votes cast in the last gubernatorial election. Massachusetts also has a distribution requirement that requires no more than 25% of the certified signatures on any petition can come from a single county.
The state Legislature has until the first Wednesday of May in the election year to pass the statute. If the legislature does not pass the proposed statute, proponents must collect a second round of signatures equal to 0.5% of the votes cast in the last gubernatorial election. The Legislature also has the power to place an alternative measure alongside the proposed statute via a simple majority vote of the state legislature.
A simple majority vote is required for voter approval. However, the number of affirmative votes cast for the measure must be greater than 30% of the votes cast in the election.
The requirements to get an initiated state statute certified for the 2026 ballot:
- Signatures (first round): 74,574
- Signatures (second round): 12,429
- Deadline (first round): The deadline to submit the first round of signatures to the secretary of state was December 3, 2025.
- Deadline (second round): The deadline to submit the second round of signatures is July 8, 2026.
Stages of the ballot initiative
The following is the timeline of the initiative:[8]
- August 7, 2025: The Massachusetts Attorney General announced that the initiative had been filed.
- September 3, 2025: The Massachusetts Attorney General announced that the initiative had been cleared and that supporters could begin gathering signatures for the initiative.
- November 19, 2025: Supporters of the initiative announced that the campaign had gathered 86,000 signatures in support of the initiative.[9][10]
- December 30, 2025: The state Elections Division announced that it had certified 85,588 valid signatures in support of the initiative. As such, it was certified to go before the state legislature in the 2026 legislative session.[11]
External links
See also
View other measures certified for the 2026 ballot across the U.S. and in Massachusetts.
Explore Massachusetts's ballot measure history, including citizen-initiated ballot measures.
Understand how measures are placed on the ballot and the rules that apply.
Footnotes
- ↑ 1.0 1.1 Mass.gov, "Initiative Petition for a Law Relative to Limiting State Tax Collection Growth and Returning Surpluses to Taxpayers," accessed September 4, 2025
- ↑ 2.0 2.1 General Court of the Commonwealth of Massachusetts, "Section 2: Definitions," accessed January 13, 2026
- ↑ 3.0 3.1 3.2 3.3 Massachusetts Opportunity Alliance, "Taxpayer Benefits Of Massachusetts Revenue Cap Revision," accessed January 13, 2026
- ↑ General Court of the Commonwealth of Massachusetts, "Section 2BBBBBB: Education and Transportation Fund; income surtax revenues;" accessed January 13, 2026
- ↑ Massachusetts Budget and Policy Center, "Fair Share Amendment," accessed January 13, 2026
- ↑ WBUR, "Baker sees 1986 law triggering $2.5 billion in rebates," accessed January 13, 2026
- ↑ 7.0 7.1 Tax Policy Center, "What are tax and expenditure limits?" accessed January 13, 2026
- ↑ Mass.gov, "Ballot Initiatives Submitted for the 2026 Biennial Statewide Election (proposed laws) and 2028 Biennial Statewide Election (proposed constitutional amendments)," accessed August 6, 2025
- ↑ WBUR, "Ballot questions on rent control, all-party primaries and legislative stipends expected to move forward," accessed November 19, 2025
- ↑ CommonWealth Beacon, "Cutting taxes, recriminalizing recreational pot, scrutinizing Beacon Hill: record number of ballot questions in the mix for 2026," accessed November 20, 2025
- ↑ Secretary of the Commonwealth of Massachusetts, "State Elections Division Certifies New Batch of Ballot Questions," accessed January 5, 2025
