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Tarr files bill to phase down Massachusetts short-term capital gains rate to 5 percent
Summary
Sen. Bruce E. Tarr filed Senate Bill No. 2087 on Jan. 10, 2025, proposing a phased reduction of Massachusetts’ short-term capital gains rate from 8.5 percent to 6.84 percent, 5.18 percent and then 5 percent across three fiscal years; the filing was submitted to the legislature’s Revenue committee.
Sen. Bruce E. Tarr filed legislation on Jan. 10, 2025, seeking to lower Massachusetts’ short-term capital gains rate from 8.5 percent in Section 8 of Chapter 50 of the Acts of 2023 to 6.84 percent, then 5.18 percent, and finally 5 percent in a phased schedule. The bill was submitted to the General Court and designated Senate Bill No. 2087 for consideration by the legislature’s Revenue committee.
The proposal would amend Section 8 of Chapter 50 of the Acts of 2023 by replacing the term "8.5 percent" with three different percentage rates in separate sections of the bill. Under the text of the filing, the first change would take effect for the fiscal year immediately following the act’s passage; the second change would take effect one year after passage; and the third change would take effect two years after passage.
Why it matters: the bill would change the statutory short-term capital gains rate applied under the cited act and could affect investors and state revenue streams if enacted. The filing itself contains no revenue estimates, fiscal note, or statements of anticipated budgetary impact; those analyses are not specified in the document provided.
Details of the filing: the measure is titled "An Act relative to the short term capital gains rate to make Massachusetts more competitive" and was presented to the Senate and House of Representatives with the notation that the subject matter falls under "Revenue." The filing references that similar legislation was filed in the previous session (see Senate No. 1947 of 2023–2024) but the document does not record any committee hearings, votes, or other legislative actions beyond the formal filing.
What the document does and does not show: the text explicitly replaces the term "8.5 percent" in Section 8 of Chapter 50 of the Acts of 2023 with the figures "6.84 percent," "5.18 percent," and "5 percent" in three separate sections. The document sets out the effective timing for each replacement in fiscal-year terms. The filing does not include quoted remarks from Sen. Tarr, estimated fiscal impacts, stakeholder endorsements, or implementation details beyond the statutory amendments and effective dates.
Next steps: as with any bill introduced to the General Court, SB 2087 must be taken up by the relevant committee(s), may be the subject of hearings and amendments, and would require passage by both chambers and enactment to become law. The filing provided does not indicate committee action or a hearing schedule.
