Senate $40.3 billion budget plan keeps tax estimates intact

BOSTON (AP) — A state budget plan released by key Senate panel calls for $40.3 billion in spending but lawmakers say that may need to be adjusted if tax collections continue to fall short of targets.

The spending plan for the fiscal year starting July 1 includes a $180 million health care assessment on certain businesses and calls for extending the state’s lodging tax to Airbnb and other short-term rentals. But it does not include any major new tax proposals.

The Senate Ways and Means Committee released its plan on Tuesday without adjusting estimates that call for a 3.9 percent increase in tax revenues. Through ten months of the current fiscal year, revenues have increased by only 1.1 percent.

If that trend continues, lawmakers might have to cut spending before finalizing the budget.

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