To establish a local option municipal excise tax on unused utility corridors
Impact
If enacted, H3054 would amend Chapter 59 of the General Laws by adding a new section that allows cities and towns to apply this local option tax to unused utility corridors. The tax revenue collected would be remitted to the Massachusetts Commissioner of Revenue, who would distribute funds to the municipalities based on the amount generated from each locality. This framework encourages localities to evaluate existing utility corridors and consider their potential for revenue generation through taxation.
Summary
House Bill 3054 aims to establish a local option for municipalities in Massachusetts to levy an excise tax on unused utility corridors. The bill stipulates that municipalities can impose this tax on rights of way owned or leased by either a railroad or utility company that has remained unused for over ten years. The proposed tax will be set at a rate of $0.10 per linear foot of such rights of way, with the intention to generate revenue for local governments.
Contention
While the bill aims to create a new revenue stream for municipalities, it may face contention mainly from utility companies that could view the tax as an additional financial burden. Moreover, there may be concerns raised by legislators about the fairness of taxing corridors that have not been actively used, particularly if these corridors are in areas where utilities are not needed or available. Further discussions will likely revolve around the implications of imposing such a tax on utilities and its impact on planning and infrastructure development within communities.