MARBLEHEAD – The largest taxpayers association in Massachusetts, Citizens for Limited Taxation (CLT), will officially close its doors by the end of the year, leaving Bay State taxpayers with a final gift of $3 billion in state income tax refunds.
For 48 years, CLT has been advocating for fewer taxes across the state of Massachusetts. It was founded in 1974 by businessman Edward F. King to oppose and ultimately defeat the fourth proposed graduated income tax constitutional amendment on the 1976 ballot.
Marblehead resident Barbara Anderson was the longtime executive director of the organization, stepping into the role in 1980. She passed away from leukemia in 2016. Under Anderson’s leadership, CLT worked to repeal a 1975 state income surtax and pushed for a cap on overall state revenue growth.
It has been a long battle, but as a result, $3 billion in income tax refunds are now in hand or on its way to 3.4 million taxpayers, under Chapter 62F of Massachusetts state law.
CLT’s — and Anderson’s — crowning achievement was Proposition 2 ½, the property tax limitation and fair market valuation law. This law restricted the amount of property tax revenue a community can raise through real and personal property taxes.
CLT pushed for years to lower the income tax rate, and succeeded with a reduction from 5.05 percent to 5 percent. In 2019, current CLT Director Chip Ford said he regretted that Anderson was not able to see the fruits of their labor.
Also in 2019, CLT worked with Massachusetts Fiscal Alliance (MassFiscal) to oppose and defeat Gov. Charlie Baker’s multistate Transportation and Climate Initiative compact and its accompanying gas tax hikes.
Ford served as CLT’s co-director alongside Anderson since 1996 and became the executive director in 2016. He turned 73 last month and decided it’s time to step aside.
“I think Chip Ford wants to retire, and CLT is shutting its doors on a very high note,” said Paul Diego Craney, spokesman from MassFiscal.
“It’s a new era, time for new energy to move the tax limitation movement forward in Massachusetts,” said Ford. “For going on half a century, CLT has carried the burden of leadership in that indispensable mission. The time has come to pass the tax limitation torch onto another generation. Fortunately for Bay State taxpayers, and especially for CLT members, Massachusetts Fiscal Alliance is positioned well to run with that torch.”
“We’re going to do everything we can to protect the laws that were passed by CLT, which includes the 5 percent income tax rollback that was passed in 2000 … then you have Proposition 2 ½, which protects property owners … And then, of course, chapter 62F is what we talked about,” Craney said in an interview.
Craney said Question 1 will accelerate the outward migration of taxpayers, and specifically high-income earners. Every state wants to keep high-income earners because they pay more taxes, create jobs and donate to charitable organizations.
He said Massachusetts has the fourth-highest rate of taxpayer population loss in the U.S. “If you combine all the other New England states, we’re losing more taxpayers than all those states combined,” said Craney.
“It’s not a debate, it is a fact,” he said. “Massachusetts has roughly 4.5 million taxpayers, and Question 1 will impact about 20,000 to 25,000 taxpayers every year, and I believe the number is about 2,000 taxpayers earn about $5 million or more.”
Some of MassFiscal’s plans for tax cuts are aimed at holding Gov. Elect Maura Healey accountable for her tax-cut pledge, to hold the Massachusetts House speaker and Senate president accountable for their promises, and to continue the fight that CLT has led.
