The proposed legislation, titled "The Parking Services Taxation Act," introduces a new chapter to Title 44 of the General Laws concerning taxation. It grants municipalities the authority to impose a sales tax on parking services, defined 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, at a rate not exceeding seven percent (7%). This tax is in addition to any other taxes authorized by general or public laws.

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