Bill > H3756

This bill allows cities and towns in Massachusetts to impose a local tax of up to 30% on parking facilities, defined as any outdoor or indoor area where more than three motor vehicles can be parked for a fee. If a municipality chooses to adopt this provision, the tax would be collected by parking facility operators and paid to the Commissioner of Revenue, similar to how sales tax is collected. The collected revenue would be split equally: half would be distributed back to the originating municipality to fund transportation infrastructure like roads, bridges, complete streets programs, and transit services, while the other half would go to the Commonwealth Transportation Fund. The tax would be explicitly charged to the purchaser and must be stated separately on receipts. Operators who fail to collect or remit the tax would be liable for the full amount. The provision becomes effective 30 days after a municipality accepts it, and municipalities have up to one year to dispute the commissioner's distribution calculations. This bill provides a potential new revenue stream for local transportation improvements by leveraging existing parking fees.

Transportation and Infrastructure

https://malegislature.gov/Bills/194/H3756