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H 3756

An Act reinvesting in transportation through assessments on parking

194th Legislature (2025-2026) Introduced by Steve Owens

Local-option parking tax up to 30% on parking facilities; collected by operators, with 50% to local transportation programs and 50% to the Commonwealth Transportation Fund.

Hearing rescheduled to 10/14/2025 from 01:00 PM-05:00 PM in A-1 and Virtual Hearing location changed
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Bill Summary · H 3756

Overview

Bill H.3756, titled “An Act reinvesting in transportation through assessments on parking,” proposes a local-option parking tax in Massachusetts. The bill would authorize municipalities to impose a parking facility tax of up to 30% of the rate charged by parking facilities. Revenue would be split between municipal transportation-related programs and the Commonwealth Transportation Fund. The measure is currently undergoing a hearing process with a rescheduled date of October 14, 2025.

Key procedural notes:
- Introduced: February 27, 2025
- Referred to: Transportation Committee
- Status: Hearing rescheduled to 10/14/2025 (1:00 PM–5:00 PM); location adjustments noted
- Related action: Senate concurrence indicated; House version designated as HD 1034 (replaces)

What the Bill Would Do

  • Create a local option to impose a tax on parking facilities within a city or town that adopts the measure.
  • Tax rate cap: up to 30% of the parking facility rate charged to customers.
  • Tax collection: the operator of the parking facility would collect the tax from the purchaser and separately disclose the tax on receipts. Tax is treated as a debt of the purchaser to the operator, recoverable as with other debts.
  • Revenue sharing: half of the tax receipts would be distributed to address municipal transportation needs (e.g., roads, bridges, transit-related programs, complete streets initiatives) in the adopting municipality; the other half would go to the Commonwealth Transportation Fund.
  • Dispute mechanism: municipalities may challenge the Commissioner's distribution calculations in writing within one year of distribution.
  • Implementation trigger: the law takes effect in a municipality on the first day of the calendar quarter after acceptance of the section (or a later designated quarter).
  • Scope: the definitions cover “Operator” and “Parking Facility,” and clarify that the tax applies to facilities where more than three vehicles can be parked or stored for a charge.

Key Provisions

  • Definitions:
    • Commissioner: Commissioner of Revenue
    • Operator: Any person operating a parking facility or valet parking
    • Parking Facility: Indoor or outdoor space where >3 motor vehicles may be parked for a charge
  • Local option: municipalities may accept the provision via the process described in Chapter 4, Section 4
  • Tax mechanics: operator collects and remits tax; tax shown separately on records; purchaser bears the cost
  • Distribution: 50% to municipal transportation-related uses; 50% to Commonwealth Transportation Fund
  • Accountability: disputes over distributions must be filed within one year
  • Effective date: takes effect the first day of the calendar quarter after acceptance

Affected Parties

  • Parking facility operators and, where applicable, valet operators
  • Municipalities choosing to adopt the tax
  • Parking customers who pay the tax as part of the parking fee
  • Local transportation programs and transit-related municipal initiatives
  • Commonwealth Transportation Fund

Procedural and Timeline Highlights

  • Introduced February 27, 2025; referred to Transportation
  • Senate concurrence noted
  • Hearing date set for October 14, 2025 (previously scheduled for September 30)
  • Implementation contingent on municipal acceptance, with timing tied to quarterly calendar dates after acceptance

Related Information

  • House Docket: No. 3756 (HD 1034 replaces)
  • This bill would amend Chapter 40, inserting new Section 22A1/4
  • No explicit fiscal impact figures are provided; revenue depends on local adoption rates, parking volumes, and rates

If you’d like, I can add a brief comparison to existing Massachusetts parking or transportation funding mechanisms to provide additional context.

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

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