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HD 6025

A communication from the Office of the Comptroller (see Section 35T of Chapter 10 of the General Laws) submitting the certification of MBTA Dedicated Sales Tax Revenues for fiscal year 2027

194th Legislature (2025-2026)

MBTA FY2027 funding will be the greater of its dedicated sales tax revenue ($1.444B) or base revenue, with dedicated revenue exceeding base by $174.15M.

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Bill Summary · HD 6025

Overview

  • Jurisdiction: Massachusetts
  • Bill: HD 6025, Session 194th
  • Topic: Certification of MBTA Dedicated Sales Tax Revenues for Fiscal Year 2027 (as reported by the Office of the Comptroller under Section 35T of Chapter 10)
  • Date in document: March 13, 2026

Note: This is a certification document from the Comptroller rather than a typical standalone legislative bill. It confirms the projected MBTA dedicated sales tax revenue for FY2027 and compares it to the base revenue amount, establishing the MBTA’s eligible dedicated revenue amount for the year.

Purpose and Intent

  • To certify for Fiscal Year 2027 the amount of MBTA dedicated sales tax revenue the Commonwealth expects to receive, in coordination with the Department of Revenue.
  • To determine whether FY2027 dedicated sales tax revenue exceeds the base revenue amount established in the certification, and by how much, under the MBTA funding framework outlined in M.G.L. c. 10, § 35T.

Key Provisions and Calculations

  • Baseline framework: The MBTA is to receive the greater of:
    • The dedicated sales tax revenue, or
    • The base revenue amount certified earlier under the same framework.
  • For FY2027, the document projects that the dedicated sales tax revenue will exceed the base revenue by $174,149,701.
  • Calculation specifics (as provided in the Certification):
    • Projected sales and use tax collections (exclusive of meals tax): $8,026,620,000
    • MBTA share of those taxes: 16.000% (the MBTA’s share corresponds to 1 cent of the 6.25% sales tax)
    • 16.000% of FY2027 sales and use tax collections (excluding meals): $1,284,259,200
    • Plus the statutory add-on: $160,000,000 (per M.G.L. Chapter 10, §35T)
    • FY2027 projected dedicated sales tax revenue: $1,444,259,200
    • FY2027 base revenue (as certified on March 1, 2026): $1,270,109,499
    • Difference (dedicated revenue minus base): $174,149,701
  • Tax rate context: The calculation uses a 6.25% sales tax rate, with MBTA dedicated revenue representing 16.00% of the tax base.

Affected Parties and Impacts

  • Massachusetts MBTA (Massachusetts Bay Transportation Authority): Receives dedicated sales tax revenues as its funding source; the certification confirms the amount available for FY2027.
  • Commonwealth agencies: Office of the Comptroller, Department of Revenue, and fiscal officers coordinating MBTA funding under the 35T framework.
  • State budget processes: The certified amount feeds into the MBTA budget and related state appropriations or transfers for FY2027.

Procedural and Timeline Aspects

  • Certification process: In accordance with M.G.L. c. 10, § 35T(b) and the July 1, 2000 MBTA-Commonwealth MOU, the MBTA’s dedicated sales tax revenue for FY2027 is calculated and certified.
  • Consultation: The certification is done in consultation with the Department of Revenue.
  • Documentation: The certification includes a detailed calculation and a narrative confirming that the dedicated amount exceeds the base revenue by $174,149,701.
  • Communication: The document is addressed to the Secretary of Administration and Finance and the Interim Secretary of Transportation, with copies to legislative chairs and budget officials.

Summary

This filing certifies that, for Fiscal Year 2027, the MBTA’s dedicated sales tax revenue is projected to be $1.444 billion, which exceeds the previously certified base revenue by approximately $174.15 million. The MBTA would thus receive the greater of the dedicated sales tax revenue or the base amount, with the calculation anchored to 16% of the state’s 6.25% sales tax base (excluding meals tax) plus the statutory $160 million add-on. The document aligns with state law and the 2000 MBTA-Commonwealth agreement, ensuring predictable funding for the MBTA in FY2027.

Compiled from official sources — confirm details with the bill’s official record.

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