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 purposes of 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%). This tax is in addition to any other taxes authorized by the general or public laws.

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