The proposed legislation, titled "The Parking Services Taxation Act," introduces a new chapter to Title 44 of the General Laws concerning taxation. It defines "parking services" as the act of offering a parking space in or on a parking facility for occupancy by a patron in exchange for a parking fee. The act empowers each city and town in the state to pass ordinances requiring all sales of parking services to be taxed at a rate of no more than seven percent (7%), in addition to any other taxes authorized by general or public laws.

Furthermore, the act stipulates that any revenue generated through the parking services tax will not be included in the calculation of a municipality's maximum levy increase as governed by existing law (44-5-2). The act aims to provide municipalities with a new revenue stream by allowing them to impose a tax on parking services, which will be collected by the state and redistributed back to the municipalities. The act is set to take effect on January 1, 2026.