Bill > H3274

This bill establishes a local option gas tax that allows cities and towns to impose a 3-cent per gallon excise tax on fuel and special fuels sold to retail dealers within their jurisdiction. If a municipality chooses to adopt this tax, retail suppliers must collect and remit the tax to the state commissioner of revenue, who will then distribute the funds back to the respective city or town. The collected funds must be deposited into a Municipal Fuel Excise Transportation and Stormwater Fund and allocated equally across three purposes: (1) infrastructure maintenance and improvement (including roads, bridges, sidewalks, and drainage), (2) public transportation support (either to the Massachusetts Bay Transportation Authority or a regional transit authority), and (3) alternative transportation initiatives like pedestrian and bicycle facilities, senior transportation programs, telecommuting, and carpool programs. The tax would be in addition to existing state fuel taxes, and municipalities can opt into the program through a local approval process, with implementation beginning 30 days after approval in the first calendar quarter. The bill also requires retail suppliers to file monthly reports with the commissioner detailing fuel sales, including the names and addresses of retail dealers, the number of gallons sold, and selling prices.

Budget and Finance

https://malegislature.gov/Bills/194/H3274