Rep. Tara T. Hong files bill to add 3.5% surtax to align long-term capital gains rate

Rep. Tara T. Hong of Lowell filed House Bill No. 3129 on Jan. 16, 2025, to align Massachusetts’ long-term capital gains tax rate with the short-term rate by imposing a 3.5% "alignment surtax" on Part C taxable income.

The bill, titled "An Act aligning the long-term capital gains tax rate with the short-term capital gains tax rate," would amend Section 5G of chapter 29 of the General Laws and add a new definition and references in chapter 62 to establish the surtax. The bill text defines the alignment surtax as "a tax imposed at a rate of 3.5 per cent on Part C taxable income." The bill does not further define "Part C taxable income" or provide an estimate of the revenue impact.

The filing document shows the change in three short steps: inserting a reference to an "alignment surtax" in Section 5G of chapter 29 (as amended by chapter 28 of the Acts of 2023), adding a definition of "alignment surtax" to section 1 of chapter 62, and inserting the surtax into section 4 of chapter 62 after paragraph (b). The bill was submitted to the Massachusetts General Court and recorded as House Docket No. 2466 and House Bill No. 3129 on Jan. 16, 2025.

The filing itself does not include fiscal notes, committee referrals, or legislative next steps. The document presents the statutory language the legislator seeks to add; it does not include estimates of how many taxpayers would be affected or projected state revenue.

House Bill No. 3129 was presented "by Representative Hong of Lowell" in the One Hundred and Ninety-Fourth General Court and bears the petitioner listing: Tara T. Hong, 18th Middlesex, with a filing date of Jan. 16, 2025.