Bill > H4219

This bill establishes a new transportation excise tax for employers in Massachusetts, creating a graduated tax structure based on company size that requires businesses with 50 or more employees to pay an annual tax proportional to their workforce. Employers are divided into six categories ranging from 50-99 employees to 1,000 or more employees, with tax amounts escalating from approximately $25 to $150 per employee per year. The total tax assessment is capped at $230 million in 2026, with future amounts adjusted annually for inflation using the Consumer Price Index. The tax will be collected by the Department of Revenue and deposited into the Commonwealth Transportation Fund to finance transportation-related purposes. Employers can potentially reduce their liability by providing public transit subsidies to employees, and the department is authorized to establish enforcement mechanisms for non-payment, including interest rates up to 18% annually and late fees up to 5% per month. The bill defines employees broadly to include both in-state and out-of-state workers who physically commute to a Massachusetts workplace, and provides specific guidelines for how each employer's tax liability will be calculated and assessed annually.

Budget and Finance

https://malegislature.gov/Bills/194/H4219