Session Laws

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Section 6 of chapter 14 of the General Laws, as appearing in the 1984 Official Edition, is hereby amended by striking out, in lines 6 and 7, the word "consistent" and inserting in place thereof the word:- inconsistent.

SECTION 2. Section 1 of chapter 62 of the General Laws is hereby amended by striking out subsection (c), as so appearing, and inserting in place thereof the following subsection:-

(c) "Code", the Internal Revenue Code of the United States, as amended on January first, nineteen hundred and eighty-five and in effect for the taxable year.

SECTION 3. Paragraph (2) of subsection (a) of section 2 of said chapter 62, as so appearing, is hereby amended by adding the following subparagraph:-

(H) Social security benefits included in federal gross income under section eighty-six of the Code.

SECTION 4. Said section 2 of said chapter 62, as so appearing, is hereby amended by adding the following subsection:-

(g) Massachusetts adjusted gross income shall be the sum of Part A adjusted gross income and Part B adjusted gross income.

SECTION 5. Paragraph (a) of subsection B of section 3 of said chapter 62, as so appearing, is hereby amended by striking out subparagraph (9) and inserting in place thereof the following subparagraph:-

(9) In the case of an individual who pays rent for his principal place of residence and such residence is located in the commonwealth, an amount equal to fifty per cent of such rent; provided, however, that such deduction shall not exceed two thousand five hundred dollars for a single person or for a husband and wife.

SECTION 6. Paragraph (b) of said section 3 of said chapter 62, as so appearing, is hereby amended by striking out subparagraphs (1) to (3), inclusive, and inserting in place thereof the following three subparagraphs:-

(1) In the case of a single person,

(A) (i) a personal exemption of three thousand eight hundred dollars, if the person's Massachusetts adjusted gross income is less than or equal to six thousand dollars,

(ii) a personal exemption of three thousand eight hundred dollars minus twenty dollars for each one hundred dollars by which the person's Massachusetts adjusted gross income exceeds six thousand dollars, if the person's Massachusetts adjusted gross income exceeds six thousand dollars but is less than or equal to nine thousand dollars,

(iii) a personal exemption of three thousand two hundred dollars minus seventeen dollars for each two hundred dollars by which the person's Massachusetts adjusted gross income exceeds nine thousand dollars, if the person's Massachusetts gross income exceeds nine thousand dollars,

(iv) notwithstanding the provisions of clause (iii), no single person shall receive a personal exemption of less than six hundred dollars,

(B) an additional exemption of two thousand two hundred dollars if the taxpayer was totally blind at the close of his taxable year, and

(C) an additional exemption of seven hundred dollars if the taxpayer had attained the age of sixty-five before the close of his taxable year.

(2) In the case of a husband and wife filing a joint return,

(A) (i) a personal exemption of eight thousand dollars, if the person's Massachusetts adjusted gross income is less than or equal to ten thousand dollars,

(ii) a personal exemption of eight thousand dollars minus twenty dollars for each one hundred dollars by which the person's Massachusetts adjusted gross income exceeds ten thousand dollars, if the person's Massachusetts adjusted gross income exceeds ten thousand dollars but is less than or equal to eighteen thousand dollars,

(iii) a personal exemption of six thousand four hundred dollars minus seventeen dollars for each two hundred dollars by which the person's Massachusetts adjusted gross income exceeds eighteen thousand dollars, if the person's Massachusetts gross income exceeds eighteen thousand dollars,

(iv) notwithstanding the provisions of clause (iii), no husband and wife filing a joint return shall receive a personal exemption of less than one thousand two hundred dollars,

(B) an additional exemption of two thousand two hundred dollars for each spouse who was totally blind at the close of his taxable year, and

(C) an additional exemption of seven hundred dollars for each spouse who had attained the age of sixty-five before the close of his taxable year.

(3) In the case of a married person filing a separate return,

(A) (i) a personal exemption of one thousand nine hundred dollars, if the person's Massachusetts adjusted gross income is less than or equal to six thousand dollars,

(ii) a personal exemption of one thousand nine hundred dollars minus ten dollars for each one hundred dollars by which the person's Massachusetts adjusted gross income exceeds six thousand dollars, if the person's Massachusetts adjusted gross income exceeds six thousand dollars but is less than or equal to nine thousand dollars,

(iii) a personal exemption of one thousand six hundred dollars minus seventeen dollars for each four hundred dollars by which the person's Massachusetts adjusted gross income exceeds nine thousand dollars, if the person's Massachusetts gross income exceeds nine thousand dollars,

(iv) notwithstanding the provisions of clause (iii), no married person filing a separate return shall receive a personal exemption of less than three hundred dollars,

(B) an additional exemption of two thousand two hundred dollars if the taxpayer was totally blind at the close of his taxable year, and

(C) an additional exemption of seven hundred dollars if the taxpayer had attained the age of sixty-five before the close of his taxable year.

SECTION 7. Section 5 of said chapter 62 is hereby amended by striking out paragraph (a), as most recently amended by section 22 of chapter 233 of the acts of 1983, and inserting in place thereof the following:-

(a) Notwithstanding the provisions of section four, Part A taxable income and Part B taxable income shall be exempt from all taxes imposed by this chapter if the Massachusetts adjusted gross income of the taxable year does not exceed six thousand dollars for a single individual or ten thousand dollars in the aggregate for a husband and wife. No tax shall be imposed under this chapter which shall reduce such Massachusetts adjusted gross income below six thousand dollars and ten thousand dollars respectively. No exemption shall be allowed under this section to any married individual unless a joint return is filed. In the case of a short taxable year, occurring for any reason other than residence during one portion of the normal taxable year and nonresidence during another portion, there shall be substituted for the amounts of six thousand dollars and ten thousand dollars those amounts which bear the same relation to such sums as the number of days in the taxable year bears to three hundred and sixty-five. With respect to a person who is a nonresident for all or part of the taxable year, total income shall be determined as if he were a resident of the commonwealth throughout the entire taxable year.

SECTION 8. Said chapter 62 is hereby further amended by striking out section 25, as appearing in the 1984 Official Edition, and inserting in place thereof the following section:-

Section 25. Every individual who while an inhabitant of the commonwealth, and every executor, administrator, trustee or other fiduciary who while such an inhabitant or while acting under an appointment derived from a court in the commonwealth has received any income taxable under this chapter, and the estate of every deceased inhabitant of the commonwealth, shall be subject to the taxes imposed by this chapter.

SECTION 9. Paragraph (a) of section 63 of said chapter 62, as so appearing, is hereby amended by striking out clause (1) and inserting in place thereof the following clause:-

(1) is treated for federal income tax purposes under section four hundred and fifty-three of the Code, and.

SECTION 9A. Paragraph (c) of said section 63 of said chapter 62, as so appearing, is hereby amended by striking out, in line 28, the word "four hundred and fifty-three (a)" and inserting in place thereof the words:- four hundred and fifty-three.

SECTION 10. Section 4 of chapter 62B of the General Laws is hereby amended by striking out paragraph (a), as so appearing, and inserting in place thereof the following paragraph:-

(a) Every employee on or before the date of commencement of employment shall furnish his employer with a signed withholding exemption certificate setting forth the number of dependency exemptions which he claims, which shall in no event exceed the number to which he is entitled under chapter sixty-two plus one for his own personal exemption under said chapter. The term "dependency exemptions", as used in this chapter, shall include an exemption for a spouse meeting the requirements of chapter sixty-two. If any employee fails to furnish such signed certificate, the number of his exemptions shall be considered zero.

SECTION 11. Said chapter 62B is hereby amended by striking out sections 13 to 18, inclusive, as so appearing, and inserting in place thereof the following three sections:-

Section 13. Every taxpayer who in any taxable year can reasonably expect to receive income taxable under chapter sixty-two from sources other than wages upon which a tax is required to be withheld under section two and for whom the amount of estimated tax is more than two hundred dollars shall make payments of estimated tax pursuant to section fourteen. For the purposes of this section, the amount of estimated tax shall be the amount which the taxpayer estimates as the tax due under chapter sixty-two with respect to the taxable year less the amount which the taxpayer estimates as the credits to which he will be entitled under section nine for taxes withheld during the taxable year.

Section 14. (a) Except as otherwise provided in this section, in the case of any underpayment of estimated tax, there shall be added to the tax due under chapter sixty-two for the taxable year an amount determined at the rate of eighteen per cent per annum upon the amount of the underpayment for the period of underpayment.

(b) For purposes of subsection (a), the amount of the underpayment shall be the excess of the required installment, over the amount, if any, of the installment paid on or before the due date for the installment; and the period of the underpayment shall run from the due date for the installment to the fifteenth day of the fourth month following the close of the taxable year, or, with respect to any portion of the underpayment, the date on which such portion is paid, whichever is the earlier. A payment of estimated tax shall be credited against unpaid required installments in the order in which such installments are required to be paid.

(c) For purposes of this section, there shall be four required installments for each taxable year. The first installment shall be paid on April fifteenth of the taxable year, the second on June fifteenth of the taxable year, the third on September fifteenth of the taxable year, and the fourth on January fifteenth of the succeeding taxable year. The amount of any required installment shall be twenty-five per cent of the required annual payment. The term "required annual payment" means the lesser of

(i) eighty per cent, or sixty-six and two-thirds per cent in the case of a farmer or fisherman as defined in subsection (h), of the tax shown on the return for the taxable year or, if no return is filed, eighty or sixty-six and two-thirds per cent, as the case may be, of the tax for such year, or

(ii) one hundred per cent of the tax shown on the return of the taxpayer for the preceding taxable year, provided the taxpayer filed a return for the preceding taxable year and such preceding year was a taxable year of twelve months.

In the case of any required installment, if the taxpayer establishes that the annualized income installment is less than the amount determined under this subsection, the amount of such required installment shall be the annualized income installment, and any reduction in a required installment resulting therefrom shall be recaptured by increasing the amount of the next required installment or installments. The annualized income installment shall be based upon an estimated tax computed by placing on an annualized basis the taxable income for months in the taxable year ending before the due date for the installment.

(d) No addition to tax shall be imposed under subsection (a) for any taxable year if -

(i) the tax shown on the return for such taxable year or, if no return is filed, the tax is less than two hundred dollars; or

(ii) the preceding taxable year was a taxable year of twelve months, the taxpayer did not have any liability for tax for the preceding taxable year, and the taxpayer was an inhabitant of the commonwealth throughout the preceding taxable year.

(e) No addition to tax shall be imposed under subsection (a) with respect to any underpayment -

(i) to the extent the commissioner determines that by reason of casualty, disaster, or other unusual circumstances the imposition of such addition to tax would be against equity and good conscience; or

(ii) if the commissioner determines that the taxpayer retired after having attained age sixty-two or became disabled in the taxable year for which estimated payments were required to be made or in the taxable year preceding such taxable year, and such underpayment was due to reasonable cause and not to willful neglect.

(f) For the purpose of applying this section the estimated tax shall be computed without any reduction for the amount which the individual estimates as his credit under section nine, and the amount of the credit allowed under said section nine for the taxable year shall be deemed a payment of estimated tax, and an equal part of such amount shall be deemed paid on each installment date, as indicated in subsection (c), unless the taxpayer establishes the dates on which all amounts were actually withheld, in which case the amounts so withheld shall be deemed payments of estimated tax on the dates on which such amounts were actually withheld.

(g) For the purposes of this section, the term "tax" means the tax imposed by chapter sixty-two and by any act in addition thereto, reduced by the credits against tax allowed by section six of said chapter sixty-two.

(h) If, on or before March first of the following taxable year, a taxpayer who is a farmer or fisherman files a return for the taxable year and pays in full the amount computed on the return as payable then no addition to tax shall be imposed under subsection (a) with respect to any underpayment of estimated tax required to be made under this section. For the purposes of this subsection, an individual is a farmer or fisherman for any taxable year if his gross income from farming or fishing for the taxable year, or as shown on his return for the preceding taxable year, is at least two-thirds of his total gross income for the taxable year.

Section 15. All payments of estimated tax made by any taxpayer pursuant to section thirteen shall be deemed and credited as payments on account of the tax imposed on income for the taxable year under chapter sixty-two, and any taxes in addition thereto.

SECTION 12. Section 6 of chapter 62C of the General Laws, as so appearing, is hereby amended by striking out in line 3, the second time it appears, and in line 6, the word "two" and inserting in place thereof, in each instance, the word:- six.

SECTION 13. Section 11 of said chapter 62C, as so appearing, is hereby amended by striking out paragraph (b).

SECTION 14. Section 19 of said chapter 62C, as so appearing, is hereby amended by striking out the second paragraph and inserting in place thereof the following paragraph:-

An extension of six months for filing any return required by section eleven or twelve shall be allowed any corporation if, in such manner and at such time as the commissioner may prescribe, such corporation files a request, in such form as the commissioner may require, and pays, on or before the date prescribed for payment of the tax, the amount of tax reasonably estimated to be due under this chapter; but this extension may be terminated at any time by the commissioner by mailing to the corporation notice of such determination at least ten days prior to the date for termination fixed in such notice.

SECTION 15. Section 26 of said chapter 62C, as so appearing, is hereby amended by striking out, in line 11, the word "thirty-three" and inserting in place thereof the word:- thirty-two.

SECTION 16. Said chapter 62 is hereby further amended by striking out section 30, as so appearing, and inserting in place thereof the following section:-

Section 30. If the federal taxable income of a person subject to taxation under chapter sixty-two is finally determined by the federal government to be different from the taxable income as originally reported, such final determination shall be reported, accompanied by payment of any additional tax due with interest as provided in section thirty-two, to the commissioner within one year of receipt of notice of such final determination. If the taxable income of a person subject to taxation under chapter sixty-three is finally determined by the federal government to be different from the taxable income as originally reported, such final determination, shall be reported, accompanied by payment of any additional tax due with interest as provided in section thirty-two, to the commissioner within three months of receipt of notice of such final determination. If the federal taxable estate of an estate subject to taxation under chapter sixty-five C is finally determined by the federal government to be different from the taxable estate as originally reported, such final determination shall be reported, accompanied by payment of any additional tax due with interest as provided in section thirty-two, to the commissioner within two months of receipt of notice of such final determination. The report shall include a statement of the reasons for the difference in such form as the commissioner may require. If from such report or upon investigation it shall appear that any tax under chapters sixty-two or sixty-five C or that the tax with respect to income under chapter sixty-three has not been fully assessed, the commissioner shall, notwithstanding the three-year limitation in section twenty-six, assess an additional tax, if any, with respect thereto, with interest as provided in section thirty-two. An assessment under this section shall be made in the manner provided in section twenty-six within one year of the receipt of such report or within two years of the receipt by the commissioner of information from the federal government that it has made a final determination of such person's federal taxable income or of the federal taxable estate different from that report where no report is filed with the commissioner and shall be limited to changes in such person's tax liability under chapter sixty-two, sixty-three or in such estate's tax liability under chapter sixty-five C arising out of or related to the items which resulted in the change in federal taxable income or in the federal taxable estate.

If, as a result of the change by the federal government in a person's federal taxable income or in a federal taxable estate, such person or estate believes that a lesser tax was due the commonwealth than was paid, such person or estate may apply in writing to the commissioner for an abatement thereof under section thirty-seven within one year of the date of notice of such final determination by the federal government. The commissioner shall not be limited in his consideration of such application to the items which comprise the federal change but shall abate only such portion of the tax assessed or paid as exceeds the proper tax due under chapters sixty-two, sixty-three, or sixty-five C, as the case may be.

Any person or estate failing to comply with the provisions contained in the first paragraph hereof shall be assessed a penalty in the sum of one hundred dollars, or ten per cent of the additional tax found due, whichever sum is smaller said penalty to become part of the additional tax found due. For reasonable cause shown, the commissioner may, in his discretion, abate such penalty in whole or in part.

For purposes of this section, the term "person" shall include any individual, partnership, trust, corporate trust or any other fiduciary subject to taxation under chapters sixty-two or sixty-five C, or any corporation subject to taxation under chapter sixty-three.

SECTION 17. Said chapter 62C is hereby further amended by inserting after section 31 the following section:-

Section 31A. If a person fails to pay to the commissioner any required tax of a corporation or partnership and such person is personally and individually liable therefor to the commonwealth under section five of chapter sixty-two B, section seven B of chapter sixty-four G, section sixteen of chapter sixty-four H or section seventeen of chapter sixty-four I, the commissioner shall so notify such person in writing at any time during the period of time that such assessment against the corporation or partnership remains in existence and unpaid. Such person or his representative may confer with the commissioner or his duly authorized representative as to the assessment of the tax or the proposed determination that he is personally and individually liable therefor within thirty days after the date of such notification. After the expiration of thirty days from the date of such notification, such person shall be personally and individually liable for the tax of the corporation or partnership, which shall be deemed to be assessed against such person, and a lien under section fifty upon all property and rights of property, whether real or personal, belonging to such person shall arise in favor of the commonwealth.

If such person is aggrieved by the assessment of the tax or the determination that he is personally and individually liable therefor, he may apply, in writing to the commissioner, on a form approved by him, for an abatement thereof at any time within the dates provided in section thirty-seven or within sixty days from the date of the notice under this section, whichever is later. All provisions of sections thirty-seven to thirty-nine, inclusive, shall apply to such application for abatement.

SECTION 18. Subsection (d) of section 33 of said chapter 62C, as appearing in the 1984 Official Edition, is hereby amended by striking out the second sentence and inserting in place thereof the following sentence:- For purposes of subsections (b) and (c), the amount of tax shown on the return shall, for the purpose of computing the addition for any month, be reduced by the amount of any part of the tax which is paid before the beginning of such month.

SECTION 19. Said chapter 62C is hereby further amended by inserting after section 37 the following section:-

Section 37A. Notwithstanding any other provision of law, prior to a court judgment or decision by the appellate tax board, the commissioner may accept a lesser amount than the tax liability owed by a taxpayer in final and full settlement thereof; provided, however, that the following conditions are met:

(a) The commissioner finds that there is serious doubt either as to the collectibility of the tax due or as to the taxpayer's liability;

(b) The commissioner finds that the taxpayer has not acted with intent to defraud;

(c) The settlement is approved by the commissioner and at least two deputy commissioners of the department of revenue; and

(d) There is a written agreement, signed by all parties, setting forth the commissioner's reasons for the settlement and all relevant information, including, but not limited to, the names of all parties, the amount and type of tax, interest, penalties and charges settled, and the amount actually paid in accordance with the terms of the settlement. Any amount assessed that is not collected pursuant to the provisions of this section shall be abated by the commissioner.

Upon request the commissioner shall make available for public inspection the written agreement containing a settlement pursuant to this section.

Notwithstanding any provision of law to the contrary, any tax liability settlement under this section which proposes to accept an amount which is twenty thousand or more dollars less than the full amount of the tax liability owed by the taxpayer or which proposes to accept an amount which is less than fifty per cent of the full amount of the tax liability owed by the taxpayer shall be submitted to the attorney general for review. Any such settlement proposal shall take effect twenty-one days after its receipt by the attorney general, unless the attorney general objects in writing to the settlement. In the event the attorney general objects to a settlement proposal, such settlement shall not take effect until the objection is resolved by the commissioner and the attorney general. Any settlement approved under the terms of this section will not be subject to the confidentiality provisions of section twenty-one of this chapter.

Neither the taxpayer nor the commissioner, upon signing the agreement, shall be permitted to reopen the case except by reason of (1) falsification or concealment of assets by the taxpayer, or (2) mutual mistake of a material fact sufficient to cause a contract to be reformed or set aside.

The authority granted hereunder to the commissioner and deputy commissioners may not be delegated to other officials of the department.

The commissioner shall, as part of his annual report under section six of chapter fourteen, list all settlements entered into pursuant to this section during the fiscal year. Such report shall list the name of each taxpayer agreeing to a settlement and the amount of such settlement.

SECTION 20. Said chapter 62C is hereby further amended by striking out section 38, as appearing in the 1984 Official Edition, and inserting in place thereof the following section:-

Section 38. No tax assessed on any person liable to taxation shall be abated unless the person assessed shall have filed, at or before the time of bringing his application for abatement, a return as required by this chapter for the period to which his application relates; and if he filed a fraudulent return, or having filed an incorrect or insufficient return, has failed, after notice, to file a proper return, the commissioner shall not abate the tax below double the amount for which the person assessed was properly taxable under this chapter.

SECTION 21. Section 45A of said chapter 62C, as so appearing, is hereby amended by adding the following paragraph:-

If any person required by this section or section two of chapter sixty-two B or by regulation of the commissioner to deposit or to make payment of tax in advance of the filing of the return with respect to such payment and such person fails to make such deposit or payment on or before the date prescribed therefor, unless it is shown that such failure is due to reasonable cause and not to willful neglect, there shall be imposed upon such person a penalty of five per cent of the amount of the underpayment. For purposes of this paragraph, the term "underpayment" means the excess of the amount of the tax required to be so made over the amount, if any, thereof made on or before the date prescribed therefor.

SECTION 22. Section 49A of said chapter 62C, as so appearing, is hereby amended by striking out, in line 14, the word "forty-seven" and inserting in place thereof the word:- forty-seven A.

SECTION 23. Clause (b) of paragraph 5 of section 30 of chapter 63 of the General Laws, as so appearing, is hereby amended by striking out the second sentence and inserting in place thereof the following sentence:- A deduction shall be allowed for that portion of wages or salaries paid or incurred for the taxable year equal to the amount of the credit allowable for the taxable year under section fifty-one of the Federal Internal Revenue Code and otherwise disallowed under section two hundred and eighty C of said Code.

SECTION 24. Chapter sixty-three C of the General Laws is hereby repealed.

SECTION 25. Section 1 of chapter 64C of the General Laws, as appearing in the 1984 Official Edition, is hereby amended by adding the following paragraph:-

Whenever used in this chapter or chapter sixty-two C, unless the context otherwise requires, the word "cigarette" shall include within its meaning smokeless tobacco; and the words "smokeless tobacco" shall mean snuff, snuff flour and any other tobacco or tobacco product prepared in such manner as to be suitable for chewing, including, but not limited to cavendish, plug, twist and fine-cut tobaccos. The provisions of sections twenty-nine to thirty-nine, inclusive, however, shall not apply to smokeless tobacco.

SECTION 26. Section 6 of said chapter 64C, as so appearing, is hereby amended by inserting after the word "mills", in lines 3 and in line 10, in each instance, the words:- plus any amount by which the federal excise tax on cigarettes is less than eight mills.

SECTION 27. Said section 6 of said chapter 64C, as so appearing, is hereby further amended by adding the following paragraph:-

Notwithstanding the provisions of this section, the excise imposed by this chapter shall equal twenty-five per cent of the price paid by such licensee or unclassified acquirer to purchase smokeless tobacco so sold, imported, or acquired.

SECTION 28. Said chapter 64C is hereby further amended by striking out section 28, as so appearing, and inserting in place thereof the following section:-

Section 28. All sums received under this chapter as excises, penalties, forfeitures, interest, costs of suits and fines, less all amounts refunded or abated thereunder, shall be credited as follows:

(a) Forty per cent of the amount in excess of one hundred sixty-nine million, eight hundred thousand dollars received during a fiscal year shall be credited to the Local Aid Fund.

(b) Eighty and seventy-seven hundredths per cent of the balance remaining after crediting the amount required under paragraph (a) shall be credited to the General Fund.

(c) Nineteen and twenty-three hundredths per cent of the balance remaining after crediting the amount required under said paragraph (a) shall be credited to the Highway Fund.

SECTION 29. Section 3 of chapter 64H of the General Laws, as so appearing, is hereby amended by striking out, in line 21, the words ", with the approval of the commission,".

SECTION 30. Section 6 of said chapter 64H, as so appearing, is hereby amended by striking out, in line 341, the words "public and private nonprofit primary and secondary schools" and inserting in place thereof the words:- an educational institution which normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on.

SECTION 31. Section 27 of chapter 64I of the General Laws, as so appearing, is hereby amended by striking out the first sentence and inserting in place thereof the following two sentences:- Where a trade in of a motor vehicle or trailer is received by a dealer in such vehicles holding a valid vendor's registration, upon the sale of another motor vehicle or trailer to a consumer or user, the tax shall be imposed only on the difference between the sales price of the motor vehicle or trailer purchased and the amount allowed on the motor vehicle or trailer traded in on such purchase. When any such motor vehicle or trailer traded in is subsequently sold to a consumer or user, the tax provided for this chapter shall apply.

SECTION 32. Section 27 of chapter 65 of the General Laws, as so appearing, is hereby amended by striking out, in lines 9 and 10, the words "section thirty-three of".

SECTION 33. Section 32 of said chapter 65, as so appearing, is hereby amended by striking out, in line 11, the word "thirty-three" and inserting in place thereof the word:- thirty-two.

SECTION 34. Section 2 of chapter 65A of the General Laws, as so appearing, is hereby amended by striking out, in line 6, the word "thirty-three" and inserting in place thereof the word:- thirty-two.

SECTION 35. Paragraph (d) of section 100 of chapter 156B of the General Laws, as so appearing, is hereby amended by adding the following sentence:- Notwithstanding the foregoing, the dissolution of the corporation shall not become effective unless and until the state secretary has received a certificate of the commissioner of revenue that all taxes due and payable under chapter sixty-two C by the corporation to the commonwealth have been paid or provided for.

SECTION 36. Section 101 of said chapter 156B, as so appearing, is hereby amended by striking out the first paragraph and inserting in place thereof the following paragraph:-

If a corporation has failed to comply with the provisions of law requiring the filing of reports with the state secretary or the filing of any tax returns or the payment of any taxes under chapter sixty-two C for two or more consecutive years, or if the state secretary is satisfied that a corporation has become inactive and that its dissolution would be in the public interest, the state secretary may dissolve the corporation, subject to the provisions of sections one hundred and two, one hundred and four, and one hundred and eight.

SECTION 37. The third paragraph of said section 101 of said chapter 156B, as so appearing, is hereby amended by striking out the last sentence and inserting in place thereof the following sentence:- Notwithstanding the foregoing, a corporation shall not be dissolved if the reports that give rise to the state secretary's notice have been filed at least ten days before the effective date of dissolution, if the tax returns or tax payments that gave rise to the state secretary's notice have been filed, paid or provided for at least ten days before the effective date of dissolution and the state secretary has received a certificate issued by the commissioner of revenue that the corporation is in good standing with respect to any and all returns due and taxes payable to said commissioner, or if the state secretary determines before the effective date of dissolution that the dissolution would not be in the public interest.

SECTION 38. Section eighty-eight of chapter six hundred and eighty-four of the acts of nineteen hundred and seventy-five is hereby repealed.

SECTION 39. Section forty-nine of chapter three hundred and sixty-seven of the acts of nineteen hundred and seventy-eight is hereby repealed.

SECTION 40. Section twenty-three of chapter two hundred and thirty-three of the acts of nineteen hundred and eighty-three is hereby repealed.

SECTION 41. Said chapter 233 is hereby further amended by striking out section 99 and inserting in place thereof the following section:-

Section 99. For the purposes of collecting certain taxes, the commissioner is authorized to enter into agreements with one or more private persons, companies, associations or corporations doing business in the commonwealth to provide collection services within and outside the commonwealth with respect to unpaid taxes. No such agreement shall be entered into unless proposals for the same have been invited by public notice published in at least one newspaper once a week for at least two consecutive weeks and the last publication to be at least one week prior to the time specified for the opening of said proposals. All such proposals shall be opened in public. The commissioner may reject any or all of such proposals. The commissioner shall not assign the account of any taxpayer to a private collection agency until such taxpayer has been sent a notice at least thirty days prior thereto, of the intention of the commissioner to so assign the collection of such unpaid taxes of such taxpayer. Any such agreement may provide, in the discretion of the commissioner, the manner in which the compensation for such services will be paid. Under standards established by the commissioner, such compensation shall be added to the amount of the tax and collected as a part thereof by the contractor; deducted and retained by the contractor from the amount of tax collected; or paid by the commonwealth from the amount of tax collected without further appropriation therefor.

The commissioner shall, as part of his annual report under section six of chapter fourteen, list all private persons, companies, associations or corporations with whom the commissioner has agreements for collection services during the fiscal year and the amount of taxes collected by and the compensation paid to each such person, company, association or corporation.

The provisions of this section shall become inoperative on January first, nineteen hundred and eighty-eight.

SECTION 42. Section one hundred of said chapter two hundred and thirty-three is hereby repealed.

SECTION 43. Section 101 of said chapter 233, as amended by section 169 of chapter 189 of the acts of 1984, is hereby further amended by striking out the fourteenth sentence.

SECTION 44. For taxable years commencing on or after January first, nineteen hundred and eighty-six and before January first, nineteen hundred and eighty-seven, there is hereby imposed, in addition to the taxes levied under the provisions of chapter sixty-two of the General Laws, a tax equal to three and three-fourths per cent of the taxes levied under the provisions of said chapter sixty-two. All provisions of law relative to the assessment, collection, payment, abatement, verification, and administration of taxes, including penalties, levied under said chapter shall, so far as pertinent, be applicable to the tax imposed by this section.

SECTION 45. The special commission making an investigation and study relative to all state, local, special district and county taxation within the commonwealth in order to develop a tax reform program for the commonwealth, established by section eighty-two A of chapter two hundred and eighty-nine of the acts of nineteen hundred and eighty-three, is hereby authorized and directed to investigate and study the feasibility of allowing the commissioner of revenue to utilize unitary accounting procedures for calculating the corporate excise tax. Said commission shall report to the general court the result of its investigation and study pursuant to this section, with its recommendations together with drafts of legislation, if any, necessary to carry its recommendations into effect, by filing the same with the clerk of the house of representatives on or before the last Wednesday in December, nineteen hundred and eighty-six.

SECTION 46. Every manufacturer, wholesaler, vending machine operator, unclassified acquirer or retailer, as defined in section one of chapter sixty-four C of the General Laws, who, at the commencement of business on February first, nineteen hundred and eighty-six, has on hand for sale any smokeless tobacco, as defined in section one of chapter sixty-four C of the General Laws, as amended by section twenty-five of this act, shall make and file with the commissioner of revenue within twenty days thereafter a return, subscribed under the penalties of perjury, showing a complete inventory of such smokeless tobacco and shall, at the time he is required to file such return, pay an excise at the rate of twenty-five per cent of the price paid by such manufacturer, wholesaler, vending machine operator, unclassified acquirer, or retailer to purchase such smokeless tobacco on all smokeless tobacco upon which an excise has not been paid. All provisions of chapters sixty-two C and sixty-four C of the General Laws relative to the assessment, collection, payment, abatement, verification and administration of taxes, including penalties, shall, so far as pertinent, be applicable to the excise imposed by this section.

SECTION 47. Section fourteen of this act shall apply only to requests for extensions of time for corporate tax returns filed on or after its effective date.

SECTION 48. Section seventeen of this act shall apply to all state taxes due on or after its effective date.

SECTION 49. Section twenty-one of this act shall apply to payments of tax required to be made on or after its effective date.

SECTION 50. Sections two, three, nine and nine A of this act shall apply to tax years commencing on or after January first, nineteen hundred and eighty-six. Sections four, seven, twelve, thirty-eight, forty, and forty-three shall apply to tax years commencing on or after January first, nineteen hundred and eighty-six. Sections six and eleven shall apply to tax years commencing on or after January first, nineteen hundred and eighty-seven. Sections nineteen, forty-one, and forty-two shall take effect as of September fifteenth, nineteen hundred and eighty-five. Sections twenty-five, twenty-six, twenty-seven, twenty-eight, and forty-six shall take effect on February first, nineteen hundred and eighty-six. Sections thirty-five, thirty-six, and thirty-seven shall take effect on January first, nineteen hundred and eighty-six and shall apply to dissolutions of corporations taking effect on or after said date. Section forty-four shall apply to tax years commencing on or after January first, nineteen hundred and eighty-six and before January first, nineteen hundred and eighty-seven.