Taxation
Depending on how it is calculated, state and local tax burden in Massachusetts has been estimated among U.S. states and Washington D.C. as 21st highest (11.44% or $6,163 per year for a household with nationwide median income)[195] or 25th highest overall with below-average corporate taxes (39th highest), above-average personal income taxes, (13th highest), above-average sales tax (18th) highest, and below-average property taxes (46th highest).[196] In the 1970s, the Commonwealth ranked as a relatively high-tax state, gaining the pejorative nickname "Taxachusetts". This was followed by a round of tax limitations during the 1980s—a conservative period in American politics—including Proposition 2½.[197]As of January 1, 2016, Massachusetts has a flat-rate personal income tax of 5.1%,[198] after a 2002 voter referendum to eventually lower the rate to 5.0%[199] as amended by the legislature.[200] There is a tax exemption for income below a threshold that varies from year to year. The corporate income tax rate is 8.8%,[201] and the short-term capital gains tax rate is 12%.[202] An unusual provision allows filers to voluntarily pay at the pre-referendum 5.85% income tax rate, which is done by between one and two thousand taxpayers per year.[203]
The state imposes a 6.25% sales tax[201] on retail sales of tangible personal property—except for groceries, clothing (up to $175.00), and periodicals.[204] The sales tax is charged on clothing that costs more than $175.00, for the amount exceeding $175.00.[204] Massachusetts also charges a use tax when goods are bought from other states and the vendor does not remit Massachusetts sales tax; taxpayers report and pay this on their income tax forms or dedicated forms, though there are "safe harbor" amounts that can be paid without tallying up actual purchases (except for purchases over $1000).[204] There is no inheritance tax and limited Massachusetts estate tax related to federal estate tax collection.[202]
Energy
Massachusetts' electricity generation market was made competitive in 1998, enabling retail customers to change suppliers without changing utility companies.[205] In 2012, Massachusetts consumed 1374.4 trillion BTU,[206] making it the fifth lowest state in terms of consumption of energy per capita, and 63% of that energy came from natural gas.[206] In 2014 and 2015, Massachusetts was ranked as the most energy efficient state the United States[207][208] while Boston is the most efficient city,[209] but it had the third highest electricity prices of any state.[206]
Further information: Category:Energy in Massachusetts
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