The Act imposes a temporary tax upon all retail sales of tangible personal property at the rate of three per cent of the selling price. Sales of certain items are exempted from the tax, including but not limited to sales of food products for human use, articles of clothing, prescriptions medicines, agricultural machinery and certain publications. The statute contains specific provisions relating to the registration of vendors, the filing of returns and the payment of the amounts collected by such vendors. vendors may apply to the State Tax Commission for abatements of the amounts owed where they believe such amounts to be excessive, and decisions of the Commission on such applications may be reviewed by the Appellate Tax Board. The Commissioner of Corporations and Taxation shall have the usual powers and remedies provided for tax collection for the collection of the taxes imposed by this section. The State Tax Commission shall issue regulations necessary for proper administration and enforcement of the section.

The Act further imposes a temporary excise upon the storage, use or other consumption in Massachusetts o tangible personal property at the rate of three percent of the sales price of such property. Sales upon which the retail sales tax describes above has been imposed, or which are exempt from the retail sales tax, shall be exempt from the use tax. Sales upon which a tax has been paid in another jurisdiction shall also be exempt. Assessment, abatement and collection of the use tax shall be governed by the provisions which relate to the tax upon retail sales. The tax upon retail sales and the excise upon storage, use or other consumption shall be effective during the period from April 1, 1966 to December 31, 1967.

Each qualified taxpayer shall be entitled to a credit of four dollars for himself, four dollars for his spouse, and eight dollars for each qualified dependent, but such credit shall not allow if the taxable income of such individual and his spouse exceeds five thousand dollars for the year. In addition to the taxes described above the Act provides for new excises upon certain banks; new taxes upon the income of certain corporations; new taxes upon cigarettes; a room occupancy excise upon rent paid for the use of hotel rooms and other lodging places; and excises upon sales of certain alcoholic beverages.

The Act creates the Local Aid Fund for the purpose of providing educational assistance and authorizes the periodic Distribution of amounts from such Fund to the cities and towns. In addition, the Act contains a variety of provisions relating to the program of State aid to public schools, and to its administration.