Business Excellence Awards
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BOSTON – The personal income tax rate dropped from 5.3 percent to 5.25 percent for the tax year that began Jan. 1, while the corporate tax rate dropped from 8.25 percent to 8 percent, the Mass. Department of Revenue announced last month.
In July 2008, Gov. Deval L. Patrick signed into law combined reporting, a system currently in place in half of the states in the nation. The law also included a gradual reduction in the corporate tax rate, which at the time was 9.5 percent. The rate was to be gradually lowered, to 8.75 percent effective for tax years beginning on or after Jan. 1, 2010; to 8.25 percent effective for tax years beginning on or after Jan. 1, 2011, and to 8 percent effective for tax years beginning on or after Jan. 1, 2012.
Combined reporting, in tandem with the rate cut, meant that larger, multistate or multinational corporations would often pay more, while the in-state corporations would pay less, with the net effect producing a “fairer” corporate tax system, the Patrick administration said in a news release. •