Bill > H3233

This bill proposes to eliminate the motor vehicle excise tax (currently governed by Chapter 60A of Massachusetts General Laws) and replace it with a gas tax adjustment mechanism. Specifically, the bill repeals Chapter 60A entirely and amends Chapter 64A to establish a new revenue collection process. Under the new system, each municipality must submit to the Department of Revenue a comprehensive list of all vehicles registered within its jurisdiction, along with a calculation of the revenue that would have been collected under the previous excise tax. The commissioner of revenue will then use this information to calculate an appropriate adjustment to the gas tax rate that would generate the same total revenue municipalities would have collected under the old excise tax system. After calculating the adjustment, the commissioner will distribute funds to each municipality equivalent to what they would have received under the previous motor vehicle excise tax. This approach effectively shifts the method of collecting vehicle-related revenue from a direct excise tax on vehicle value to an increased gas tax, while attempting to ensure municipalities do not experience a loss of revenue.

Budget and Finance

https://malegislature.gov/Bills/194/H3233