It doesn't seem like that is it. On the "Botton Line" page for my MA review, the total taxable income is my taxable wages in MA plus the capital gains which says it would be taxed at 5.1%. If you calculate 5.1% of that taxable income, subtract the state income tax that was withheld, that equals the total amount I'm being told is due. Underneath that it show taxable income at 12% is $0. Based on that, it appears that it is including the capital gains in my taxable income even though I check the box that it is not MA related.
