MA Lawmakers Propose $612 Million In New Taxes, Fees

BOSTON, MA — Massachusetts lawmakers introduced legislation in the House of Representatives Wednesday that would hike taxes and fees in hopes of raising as much as $612 million in new revenue to pay for fixes to the state's beleaguered transportation system.

In addition to raising the state gas tax to 29 cents from 24 cents, or 20.8 percent, per gallon, the legislation calls for increased fees on ridesharing trips offered by companies like Uber and Lyft, as well as the first increase to the state’s corporate tax minimum in a generation.

The new taxes would pay for improvements to the MBTA and other regional transit authorities, as well as road repairs in rural parts of the state. As part of Wednesday's announcement, lawmakers also said they were issuing $14.5 billion in new bond authorizations to pay for the Green Line extension, moving a portion of Interstate 90 in Allston and other projects.

Among the taxes and fees proposed Wednesday:

• A nickel increase in the state gasoline tax to 29 cents per gallon for regular and 33 cents for diesel. Lawmakers said the increase would generate an additional $182 million to $207 million per year.
• Increasing the fee for non-shared Uber and Lyft rides to $1.20 from 20 cents per trip. That was similar to the $1 fee increase Gov. Charlie Baker proposed last month. But legislators also want to increase the fee for non-shared luxury rides to $2.20 per trip. The fee for shared rides would remain at 20 cents.
• The creation of a nine-tier system for corporate tax minimums, which would add between $100 million and $150 million in new revenue. Under the current single-tier system, most companies pay $456 per year, regardless of how big they are. The new tax would see the biggest companies in the state paying $150,000 per year.
• An end to a provision in state law which allowed car rental companies to forgo paying sales tax, which could raise an additional $110 million per year.

Last year, House Speaker Robert DeLeo led an effort to work with Boston-area business leaders to determine kinds of tax increases they would support to pay for transportation improvements. While some business groups and Gov. Charlie Baker have opposed increasing the gas tax, other businesses have raised concerns about the economic impact of gridlock on highways and the unreliable public transit system.