Issues Update:
Insurers Recommend 4 Percent Workers Compensation Rate Cut
The Workers Compensation Rating and Inspection Bureau which represents more than 300 insurance
carriers in Massachusetts has asked the Division of Insurance to reduce the average rate for workers
compensation insurance by 4 percent. The proposed rate cut follows a similar 3.5 percent rate reduction that was implemented on July 1, 2022. The Division and the Attorney General will review the industry’s filing and could recommend a further reduction in the proposed rates.
Attorney General Pledges to Enforce Multi-Family Transit Zoning Law
Attorney General Andrea Campbell has announced that she intends to vigorously enforce the new state law that mandates denser, multi-family housing districts in the 175 cities and towns that are served by public transportation. The law that former Gov. Charlie Baker signed in January 2021 requires those communities to have at least one zoning district near a transit station in which multi-family housing is allowed as of right. Several communities have objected to the new law and have indicated that they may refuse to comply with the new zoning mandate. Those communities include the towns of Berkley, Holden, Marshfield, and Middleboro. The Attorney General plans to issue an advisory opinion which will inform communities of the requirements of the law and the penalties for not complying. Campbell noted that the law is intended to help lower and middle-class residents obtain affordable housing. The failure of a community to comply will lead to loss of certain state development funds and could lead to enforcement under the state’s fair housing laws.
Legislation Filed to Increase Minimum Wage to $20 Per Hour
The final increase in the minimum wage to $15 per hour that was required by a law passed in 2018 was
implemented on January 1st of this year. With no future increased required, several Massachusetts legislators have filed legislation which would require continued increases in the Minimum Wage Law of $1.25 per year for the next 4 years. Those scheduled increases would increase the minimum wage to $20 per hour on January 1, 2027. There appears to be significant support among Democratic legislators for this legislation while the Senate President and House Speaker have not yet publicly revealed their position. Governor Healey has indicated that she supports an increase in the minimum wage that keeps pace with the rate of inflation
Changes Proposed to New Millionaires’ Tax
Secretary of State William Galvin has urged the Legislature to amend the recent voter approved tax on
millionaires to exempt the sale of single-family homes by senior citizens from the provisions of the law.
Galvin says seniors deserve a carve-out from the new millionaires’ tax should the sale of their primary
residence trigger the tax surcharge. This specific issue was hotly debated prior to the election, and it was a leading factor cited by many residents who voted against the ballot question at the November election.
Meanwhile, supporters of the new tax have filed legislation they claim will close a loophole, which they
believe high income individuals plan to use to try and avoid or reduce their tax liability under the new law.
Accounting professionals have advised married couples that file joint returns with the federal government to file as individuals in Massachusetts. This could serve to reduce the combined incomes and tax liability for the couples. Supporters of the tax believe that tax filing option could reduce the tax collections under the new law by $200 million. The proposed legislation would require married couples that file joint returns on the federal level to choose the same joint filing status when filing their state tax returns.