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 law.

Furthermore, the act stipulates that any revenue generated from the parking services tax will not be included in the calculation of a municipality's maximum levy increase as controlled by existing law. The taxes collected will be managed by the state and redistributed to the municipalities. The act is set to take effect on January 1, 2026.