“We have no plans to propose any new taxes or increase existing taxes,” Gov. Maura Healey told business leaders on Tuesday.
Healey, who takes office in 2023, has pledged to make Massachusetts a more affordable, fair and competitive place to live — a call he repeated in a speech to the New England Council at the Boston Harbor Hotel, but also acknowledged the state faces tough fiscal times.
“We started by cutting taxes, something I want to remind the governor about. [Chris] Sununu said he was proud to be the first governor to deliver a $1 tax cut in more than 20 years. [billion] “The tax cuts will be savings for everyone,” she said, “and I've worked hard to get them done, but I can assure you I have no plans to propose any new taxes or increase existing taxes.”
New Hampshire Governor Sununu often promotes his state as a “tax-free suburb of Boston” and pitches the state as an alternative to Massachusetts.
He also echoed Transportation Secretary Healey's recent suggestion that tolls be imposed on the Massachusetts border. Though Healey opposed the idea, her Republican neighbor to the north told the Boston Herald that it would “give more Massachusetts residents a reason to move to New Hampshire permanently.”
Healey's comments on taxes come during a fiscal year in which stagnant tax revenues have forced budget cuts and hiring limits at state agencies, while lawmakers are crafting spending plans for the new budget year that begins in July. At the same time, an influx of new immigrants into Massachusetts has pushed the state's emergency shelter costs up to nearly $1 billion a year.
“We all wish we had a little more money in our pockets,” Healey said, adding that his administration was closely monitoring tax revenues and “will make spending decisions accordingly.”
Speaking to reporters after his speech on Tuesday, Governor Healey did not offer a firm timeline for how long he thinks new state taxes or tax increases will be off the table.
“That's what I see right now and for the foreseeable future,” she said. “Yeah, no taxes. I've been focused on lowering taxes.”
But a bill proposed by Healey that is being considered on Beacon Hill would allow local governments to impose new taxes on certain high-value property sales without first getting approval from the Legislature. Another bill would allow cities and towns to choose to increase local taxes on meals and lodging, or add a new surcharge to existing automobile excise taxes.
“These are local options, and we've heard from some communities that they want more tools to address the challenges they face,” Healey told reporters. “So the decisions will be made by the communities, not the state.”
The real estate transfer fee, also known as a transfer tax, has drawn opposition from business groups, many of which support other key provisions of the broader Healey Housing Bill that proposes the fee.
New England Legislature CEO Jim Brett questioned Gov. Healey about the transfer tax, saying the provision has “met some resistance” from lawmakers and that the entire $4 billion homebuilding bill is “desperately” needed.
Healey responded that it was her responsibility to come up with “policy ideas that will help stimulate production.”
“A lot of municipalities come to us and say, 'It's really a pain to have to get council approval when we want to do something like a transfer tax,'” Healy said.
The governor, emphasizing a point he has made many times before, called the state's high housing prices “the biggest problem hurting our economic competitiveness.” He urged employers and business leaders to make the case for more housing construction in their communities.
“Attend your planning commission meetings. Attend your zoning commission meetings,” she said. “Show up at those meetings and speak about the urgency. Talk about your experiences as employers or as businesses, your challenges, and help us advocate together for what needs to be done.”
Healey's housing bill could soon come up for a vote in the House of Representatives, but it's not yet clear how closely the House's redraft will match Healey's original proposal.
Assembly Speaker Ron Mariano had previously said he would bring the bill to the full House after lawmakers finish debating next year's state budget. The bill passed the House last Friday in a 153-4 vote.