Bill > H3053

This bill establishes a local option transportation excise tax for cities and towns in Massachusetts that choose to adopt it, targeting employers with more than 50 employees. The tax is graduated based on the number of employees, ranging from $10 per employee annually for companies with 50-99 employees to $100 per employee annually for companies with 1,000 or more employees. Employers can reduce their tax liability by subtracting any annual payments they already make for public transit purposes to employees, the Commonwealth, or local municipalities. The tax applies to businesses with a physical presence in Massachusetts, including corporations, non-governmental employers, partnerships, and disregarded entities, and covers both employees who commute to work in the state and Massachusetts residents working for employers with a state presence. The Department of Revenue will administer the tax, distribute collected funds quarterly to participating municipalities in proportion to the assessment, and establish regulations for tax collection and enforcement. Enforcement mechanisms may include interest rates up to 18% annually and late fees up to 5% per month. The bill requires the Department of Revenue to create implementing regulations within 180 days, with the tax taking effect 270 days after the bill's passage, giving employers time to prepare for the new tax.

Budget and Finance

https://malegislature.gov/Bills/194/H3053