Who is a member?
Our members are the local governments of Massachusetts and their elected and appointed leadership.
The Honorable James Arciero, House Chair
The Honorable Brendan Crighton, Senate Chair
Joint Committee on Transportation
State House, Boston
Delivered electronically
Dear Chair Arciero, Chair Crighton, and Distinguished Members of the Committee,
On behalf of all 351 cities and towns across the Commonwealth, I write today to express our appreciation for your enduring partnership with cities and towns and offer input regarding H. 3662, a proposal that threatens critical motor vehicle excise tax revenues.
First, we deeply appreciate your recent investments in municipal roads and bridges. These investments have provided much-needed relief to cities and towns as they work to maintain the 30,000 miles of municipal roads and bridges. These investments will provide returns for many years to come!
As well, many thanks to each of you for your leadership as we all navigate a foggy fiscal outlook and the many implications of federal policy actions. We deeply appreciate your continued commitment to maintaining the Commonwealth’s vision for a high standard of living for all, including the provision of high-quality core services for our residents. From top-tier public schooling, environmental protection, provision of clean water, maintenance of our transportation infrastructure, storm response, and more, cities and towns stand united with you to provide the essential services that allow the Commonwealth’s residents and economy to prosper.
As you know, to serve our residents well, it is critical to maintain adequate revenues to support this effort. Our recent study, “A Perfect Storm,” outlines the mounting fiscal challenges that cities and towns are currently facing. In all corners of the Commonwealth, municipalities of all shapes and sizes are facing structural deficits that threaten the provision of the foundational services our communities require to thrive.
H. 3662, An Act to increase opportunity by ending debt-based driving restrictions, threatens a municipality’s ability to collect timely payment of excise taxes, an essential revenue source for all communities. The bill proposes to discontinue the current process that flags delinquent accounts for non-renewal of associated drivers’ licenses — a system that is well established and proven to encourage payments. The bill further requires that, three months after passing, license privileges must be reinstated, effectively removing a time-tested and practical enforcement tool to encourage payment of delinquent debts. With non-renewal marks removed, individuals have little incentive to pay their past-due bills, leaving cities and towns little leverage to recoup these revenues.
The motor vehicle excise tax is a significant, consistent, and reliable revenue source for all communities and should not be threatened, especially in such a precarious fiscal climate. We strongly oppose Section 1 of H. 3662, which would eliminate the time-tested ability for cities and towns to use license non-renewals as a tool to encourage timely payments. We further urge significant caution regarding Section 19, as swift removal of license non-renewal marks could result in immediate and significant revenue losses to cities and towns.
Our members report that up to 10% of excise tax bills will engage the Registry of Motor Vehicles marking system. As an example, in Fitchburg alone, approximately $2.9 million is currently due in excise taxes associated with RMV markings. If Section 19 is passed, these critical revenues are directly threatened. If marks are lifted, voluntary compliance is difficult to compel and administrative collection efforts become even more burdensome.
H. 3662 is one of multiple efforts under consideration by the Legislature that would significantly jeopardize municipal stability. During these already difficult fiscal times, it is important for local governments to be empowered to employ enforcement mechanisms to compel timely payments. Without such tools, cities and towns are left to hope for voluntary compliance, risking fiscal stability in the community and forcing cuts to services when revenues inevitably decline.
Our members work every day to ensure that the essential municipal services our residents rely on are maintained and expanded. This effort is not possible without stable and sufficient revenues through a variety of sources. The current system for ensuring payment of excise taxes is a practical and effective practice to compel timely payments and a necessary tool to enforce collection of delinquent payments. We strongly urge you to oppose these sections of the bill.
If you have any questions or would like further conversation, please do not hesitate to have your office contact me or MMA Senior Legislative Analyst Adrienne Núñez at [email protected] at any time.
Thank you very much for continued partnership with and commitment to the well-being of cities and towns.
Sincerely,
Adam Chapdelaine
MMA Executive Director and CEO