WeVote
Log In

Bill

Bill

SD 2733

MBTA Certification of FY2026 Dedicated Sales Tax Revenue - March 2025

194th Legislature (2025-2026)

Certifies MBTA FY2026 funding as the greater of its dedicated sales tax revenue ($1.425B) or base ($1.233B), a $192.164M difference.

Placed on file
0
WeVote Research Nonpartisan
Bill Summary · SD 2733

Summary: SB/SD 2733 – MBTA Certification of FY2026 Dedicated Sales Tax Revenue (March 2025)

Status: Placed on file; introduced March 10, 2025. Classification: proposed bill.

Purpose and intent

  • The bill provides the official certification of the Massachusetts MBTA’s dedicated sales tax revenue for Fiscal Year 2026 under the framework of M.G.L. Chapter 10, Section 35T and the longstanding memorandum of understanding with state agencies.
  • It confirms that the MBTA will receive the greater of two revenue streams: (a) the dedicated MBTA portion of the statewide sales tax, and (b) the base revenue amount previously certified. This follows the July 1, 2000 MOU requiring the MBTA to receive the greater of the two.

Key provisions and calculations

  • Calculation basis:
    • The certified calculation uses the statewide sales and use tax base excluding meals tax.
    • The MBTA’s share is 16.000% of FY2026 sales and use tax collections (reflecting 1 cent of the 6.25% tax rate).
  • Fiscal Year 2026 dedicated sales tax revenue:
    • Projected sales and use tax collections (excluding meals): $7,908,000,000
    • MBTA share (16%): $1,265,280,000
    • Plus a fixed $160,000,000 per M.G.L. c. 10, § 35T: total dedicated revenue = $1,425,280,000
  • Fiscal Year 2026 base revenue:
    • Certified on March 1, 2025: $1,233,116,018
  • Difference (dedicated vs. base): $192,163,982 in favor of the dedicated sales tax.
  • Supporting context:
    • The calculation uses the most recent consensus revenue estimate for FY2026 ($43.614 billion).
    • The document notes compliance with the July 2000 MOU and the statutory framework (c. 10, § 35T(b)).

Who is affected

  • Massachusetts Bay Transportation Authority (MBTA): receives funding, with the amount determined by the greater of the dedicated sales tax revenue or base revenue.
  • Commonwealth entities:
    • Department of Revenue (consulted in the calculation)
    • Executive Office for Administration and Finance (optically listed as point of contact)
    • Comptroller and related budget/financial offices
  • Legislators and committees (as recipients of the certification and related communications)

Procedural and timeline aspects

  • Certification date: March 6, 2025 (letter dated March 6, 2025)
  • Certification covers Fiscal Year 2026
  • The document indicates ongoing consultation with key state offices (DOR, OAF) and provides contact points for questions.
  • Legislative status: Placed on file (no immediate enactment required); the bill formalizes the certification process and results.

Why this matters

  • The measure codifies the specific FY2026 funding level for the MBTA under Massachusetts law, ensuring the transportation authority receives the higher of its dedicated sales tax share or its base revenue, based on updated consensus estimates. This directly affects MBTA budgeting and operating funds for FY2026.

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

Sign in to ask a question.