Section 5G: Reporting and certification of tax revenues estimated to have been collected from capital gains income during preceding periods; transfer of excess amounts collected to Commonwealth Stabilization Fund and other funds

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Section 5G. After each quarter, the department of revenue shall certify to the state comptroller the amount of tax revenues estimated to have been collected during the preceding quarter from capital gains income. If the department of revenue certifies that the amount of tax revenues estimated to have been collected from capital gains income exceeds $1,000,000,000 in a fiscal year, the comptroller shall transfer quarterly any such amount that exceeds $1,000,000,000 collected during that fiscal year as follows:

(i)90 per cent shall be transferred to the Commonwealth Stabilization Fund established in section 2H;

(ii)5 per cent shall be transferred to the State Retiree Benefits Trust Fund established in section 24 of chapter 32A; and

(iii)5 per cent shall be transferred to the Commonwealth's Pension Liability Fund established in subsection

(e)of subdivision 8 of section 22 of chapter 32. The $1,000,000,000 threshold established in the preceding sentence shall be adjusted annually to reflect the average annual rate of growth in United States gross domestic product over the preceding 5 years based on the most recently available data published by the Bureau of Economic Analysis in the United States Department of Commerce.

The transfers shall be made before the certification of the consolidated net surplus for the previous fiscal year under section 5C. The department of revenue shall report by November 30 to the state comptroller, the executive office for administration and finance and the house and senate committees on ways and means tax revenues estimated to have been collected during the preceding fiscal year from capital gains income. The comptroller shall not make adjustment to amounts previously transferred if the capital gains revenue reported on November 30 differs from the amounts estimated during the preceding fiscal year.

For the purposes of this section, income tax revenue collected from the additional 4 per cent income tax levied pursuant to Article XLIV of the Amendments to the Constitution of the Commonwealth shall not be considered to be tax revenue collected from capital gains income.