Bill > H3775

This bill allows cities and towns in Massachusetts to establish a local option excise tax on gasoline and diesel fuel, meaning they can choose to implement this tax. This tax would be an additional charge of up to 3 cents per gallon on top of existing state taxes on these fuels, and it would be collected and managed according to current state laws for fuel taxes. The revenue generated from this local tax would be distributed back to the specific city or town that collected it, at least quarterly. Importantly, each participating city or town must create a dedicated "Municipal Fuel Excise Transportation Fund" to hold these revenues, and the money can only be spent on maintaining, repairing, constructing, or improving local transportation infrastructure like roads, bridges, sidewalks, bikeways, or public parking areas. Any unspent funds at the end of a fiscal year will automatically carry over to the next year, and any interest earned on the fund will also remain within it. The state's Department of Revenue will provide information to cities and towns about the amount of local excise tax they have collected. A city or town can adopt this local tax by following the standard procedures for accepting certain laws, and it would take effect at the beginning of a calendar quarter that starts 30 days after approval, or a later date if the town chooses.