Bill
S 2009
Allows cities/towns to levy a voter-approved surcharge on a single tax base to fund local and regional transportation projects, with sunset and separate accounting.
Status: Referred to Civil Service and Pensions (filed 1/14/2025; introduced June 10, 2025)
Primary author in text: Senator Cindy F. Friedman (Fourth Middlesex)
Note on metadata: the draft bill text is a Massachusetts General Court bill (inserting Chapter 64O into the General Laws). Some accompanying metadata (e.g., listing Charles E. Schumer as a sponsor and references to federal committees) appears inconsistent with the state bill text; users should verify which jurisdiction/record is authoritative.
Purpose
- Authorizes cities, towns, and multi-municipal districts in Massachusetts to place local ballot initiatives permitting a dedicated surcharge on a single subject of taxation to raise revenue specifically for local and regional transportation projects.
Key definitions (sec. 1)
- “Single subject of taxation”: one tax base (examples listed: sales, real or personal property, room occupancy, vehicle excise, local TNC surcharge, commercial parking surcharge, etc.) as determined annually by assessors or the Department of Revenue.
- “Transportation project”: broadly defined (public/mass transit, transit-oriented development, roads, bridges, bikeways, pedestrian pathways, etc.).
- “District agreement”: governing document for multi-municipal districts created under the act.
Major provisions
- Local adoption (sec. 2–3):
- A municipality may levy a surcharge only after its governing body approves and the voters accept the measure in a ballot question.
- The governing body must determine beforehand which single tax will be surcharged and the surcharge rate/amount.
- Ballot materials must include a concise summary that states the tax subject, surcharge percentage, time period (sunset), and may list specific projects or general project types.
- A required sunset must be included in the ballot question.
- Petition access:
- If a governing body declines to place the question, citizens may petition to place it on the ballot. Petitions must meet signature thresholds (5% of registered voters) and timing requirements; registrars have 7 days to certify signatures. (Specific deadline windows cited: 60 days before municipal elections / 100 days before state elections for governing-body-initiated questions; 120 days / 180 days thresholds for citizen-petition placement—see bill for complete timing.)
- Revenue and administration:
- Surcharge revenues must be separately accounted for and used for transportation projects.
- Exemptions and abatements that apply to the base tax continue to apply to the surcharge proportionally; taxpayers exempt from the base tax are exempt from the surcharge.
- Unpaid surcharge amounts bear interest at the same rate authorized for the underlying tax.
- For real/personal property tax surcharges, the surcharge is excluded from the calculation of total taxes for purposes of section 21C of chapter 59 (mass tax-limitation measure).
Who would be affected
- Municipal governments (cities and towns) choosing to adopt these surcharges.
- Multi-municipal districts formed under the chapter.
- Local taxpayers subject to the chosen tax base (except those with qualifying exemptions/abatements).
- Local transportation agencies/planners that would receive and spend the dedicated funds.
Procedural/timeline notes
- The chapter would be added to the General Laws as Chapter 64O and take effect in each locality only after governing-body approval and voter acceptance.
- Municipalities must set the surcharge subject, rate, and duration before the question reaches voters; ballot-placement deadlines and petition certification timelines are specified in the bill.
Potential impact
- Provides a new, locally controlled funding mechanism for transportation infrastructure and transit projects, increasing municipal flexibility to fund regional/local needs while preserving existing exemptions and requiring voter approval and sunset provisions. Local fiscal and equity impacts will depend on the chosen tax base, surcharge rates, and which projects are funded.
For full details (including omitted sections and exact procedural timelines), consult the complete bill text and verify jurisdictional metadata.
Compiled from official sources — confirm details with the bill’s official record.
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