The proposed bill, titled "The Parking Services Taxation Act," introduces a new chapter (Chapter 72) to Title 44 of the General Laws concerning taxation. It defines "parking services" as the provision of parking spaces in exchange for a fee and empowers cities and towns to enact ordinances that impose a sales tax on these services at a maximum rate of 7%. This tax is in addition to any other taxes already permitted by law. Additionally, the bill stipulates that any revenue generated from these parking services taxes will not be included in the calculation of a municipality's maximum levy increase as outlined in § 44-5-2.

The act is designed to allow municipalities to generate additional revenue through the taxation of parking services, with the collected taxes being managed by the state and redistributed to the local governments. Importantly, the revenues from this tax will be exempt from the total tax levy limit, providing municipalities with greater financial flexibility. The provisions of this act are set to take effect on January 1, 2026.