The big news for Massachusetts this week is Gov. Baker’s release of a $774 million economic recovery plan as a second wave of coronavirus cases continues to spike. Meanwhile, N.H. Governor Sununu is suing the state over its remote worker income tax policy, threatening to reduce Mass. revenue projections. Let’s get into it….
In expectation of failed negotiations on a federal economic recovery plan, Massachusetts Governor Charlie Baker has announced a $774 million economic recovery plan of his own this week.
A fair amount of the newly announced spending is coming from prior federal relief funds. The plan also includes a $171 million eviction diversion initiative announced last week. The other $600 million is coming from what Baker termed “a giant quilt of funds coming from a whole bunch of different places.”
Another $175 million is part of a revised budget and a separate $275 economic development bill mentioned in last week’s news that is not part of the plan.
In the plan, $115 million is earmarked for new investments including $50.8 million in grants for small businesses hit hard by the pandemic. Grants of up to $25,000 will be offered to businesses with five or fewer employees. Also, grants up to $75,000 will be available to companies with up to 50 workers.
The larger grants can be used for payroll and benefits, rent or mortgage payments, utilities, and interest on debt. Spending on the smaller grants is discretionary.
The governor attempted to manage income expectations by stating: “To be clear, there’s no substitute for the size and scope that a federal aid package could deliver. But that doesn’t seem to be in the offing, and we certainly don’t believe that we can wait.”
Applications for grants must be submitted by noon on Nov. 12.
Boston.com has more on this story.
COVID-19 On the Rise
Meanwhile, some are questioning whether the current revenue and spending plans will be enough to stave off economic calamity as a second wave of coronavirus cases continues to spike in Mass.
The number of confirmed coronavirus cases in the state jumped by nearly 1,000 on Thursday setting a five-month record. Currently, more than 20 percent of the state’s cities and towns are designated “high-risk.”
In addition to actual case counts, the Massachusetts Water Resources Authority’s weekly study found the highest amounts of viral RNA since the pandemic’s surge in the spring. Recent samples surpassed 300 viral RNA copies per milliliter — the highest levels since April.
Federal health agencies and officials have been warning about this second wave since before the first wave peaked. Gov. Baker has recently acknowledged the spike but said the state is prepared.
New Hampshire Gov. Sununu Sues Bay State Over Taxation of Remote Workers
New Hampshire Gov. Chris Chris Sununu has filed a lawsuit that accuses Mass. lawmakers of a “direct attack” on his state. The so-called attack is an attempt to stop a revenue leak caused by a shift to working at home by the Massachusetts Department of Revenue.
Under the new rule, instituted with pandemic emergency measures, remote workers who are residents of other states are still subject to Massachusetts’ 5.05% income tax rate.
The rule set to expire Dec. 31 or 90 days after the coronavirus state of emergency in Massachusetts is lifted. However, Sununu’s administration fears the policy could become permanent and called the move an “aggressive attempt to impose Massachusetts income tax” beyond its borders.
About the lawsuit, Gov. Sununu said:
"Massachusetts cannot balance its budget on the backs of our citizens, punish our workers for making the decision to work from home and keep themselves and their families and those around them safe. New Hampshire has no choice but to seek relief in our nation's highest court. We're going to fight this unconstitutional attempt to tax our citizens every step of the way. And we are going to win."
The action not only seeks to prohibit Massachusetts from taxing N.H. telecommuters but also to refund taxes already collected — with interest.
Roughly 80,000 N.H. residents working for Mass. businesses now work at home.
Resolving the issue could take some time. The Supreme Court is set to decide whether to take the case by the end of the year.
You can read the lawsuit at the NBC Boston website.
Cannabis Control Commission Moves Forward with Delivery-Only Dispensaries
The Mass. Cannabis Control Commission has decided to move forward with plans to allow delivery-only dispensaries in the state. The plan has received quite a bit of pushback in recent weeks.
Home delivery of marijuana is already permitted in Massachusetts. Recreational marijuana delivery was approved last year. However, only existing brick-and-mortar dispensaries are permitted to offer deliveries.
The CCC claims that the plan will help tax-paying businesses to compete with black-market dealers while also boosting the state’s mission to support minority-owned cannabis companies.
This CCC began accepting applications for a “courier” license for adult-use marijuana delivery last spring. But that license type only allowed third-party companies to deliver purchases from brick-and-mortar dispensaries.
The new delivery license permits non-brick-and-mortar shops to buy inventory from wholesale cannabis suppliers, store products in their own warehouse, and take delivery orders directly.
For the next three years, courier and delivery licenses will only be available to applicants in the CCC’s equity programs.
Read more at the Mass. CCC website.
