Massachusetts Question 3, filed under the name, the 3 percent Sales Tax Relief Act, appears on the November 2, 2010 ballot in the state of Massachusetts as an initiative. The measure, if enacted by voters, would reduce the state sales tax rate from 6.25 to 3 percent. The measure is being sponsored by the Alliance to Roll Back Taxes headed by Carla Howell. The measure would be enacted into a law 30 days after the election if approved by voters. Text of measure Ballot title The ballot title of the measure reads: Do you approve of a law summarized below, on which no vote was taken by the Senate or the House of Representatives before May 4, 2010? Summary The summary of the measure reads: This proposed law would reduce the state sales and use tax rates (which were 6.25 percent as of September 2009) to 3 percent as of Jan. 1, 2011. It would make the same reduction in the rate used to determine the amount to be deposited with the state Commissioner of Revenue by non-resident building contractors as security for the payment of sales and use tax on tangible personal property used in carrying out their contracts. The proposed law provides that if the 3 percent rates would not produce enough revenues to satisfy any lawful pledge of sales and use tax revenues in connection with any bond, note, or other contractual obligation, then the rates would instead be reduced to the lowest level allowed by law. The proposed law would not affect the collection of moneys due the Commonwealth for sales, storage, use or other consumption of tangible personal property or services occurring before Jan. 1, 2011. The proposed law states that if any of its parts were declared invalid, the other parts would stay in effect. A YES VOTE would reduce the state sales and use tax rates to 3 percent. A NO VOTE would make no change in the state sales and use tax rates. Fiscal impact Proponents of the measure say rolling back the sales tax to 3% will stimulate $132 million in private sector investment; put an average of $688 back in the pockets of 3,400,000 taxpayers and create 33,000 new, private sector jobs. Political leaders in the state have claimed that there is no current backup plan if the measure is approved by voters. Support Supporters The Alliance to Roll Back