Bill > S2429

This bill establishes a framework for regional transportation ballot initiatives, allowing cities and towns to impose a tax surcharge on a single subject of taxation, such as a payroll tax (a tax an employer pays on behalf of its employees based on a percentage of their wages), sales tax, property tax, or vehicle excise tax, to fund transportation projects. To implement such a surcharge, a city or town must first have its local governing body (city council with mayor's approval or board of selectmen) approve it, followed by voter acceptance through a ballot question. Two or more municipalities can form a district to jointly impose a surcharge on the same type of tax, though the percentage can vary, and they must establish a district agreement outlining the terms of their collaboration. All revenue generated from these surcharges must be used exclusively for transportation-related purposes, and local or regional transportation committees will be formed to study transportation needs and recommend projects, with oversight from state transportation agencies. The bill also creates a Massachusetts Local and Regional Transportation Trust Fund to receive revenues from sales or payroll tax surcharges, which will be distributed annually to participating municipalities based on the amount they raised.