The proposed bill introduces a new chapter, titled "The Parking Services Taxation Act," to Title 44 of the General Laws concerning taxation. This chapter defines "parking services" as the provision of parking spaces in exchange for a fee and empowers local municipalities to enact ordinances that impose a sales tax on these services at a maximum rate of 7%. Additionally, the bill stipulates that any revenue generated from this parking services tax will not be included in the calculation of a municipality's maximum levy increase as governed by existing law.

The act aims to provide cities and towns with a new revenue stream through the taxation of parking services, which will be collected by the state and redistributed to the municipalities. Importantly, the revenues from this tax will be exempt from the total tax levy limit, allowing municipalities greater financial flexibility. The provisions of this act are set to take effect on January 1, 2026.