BOSTON - Aug. 14, 2024 - Decades of underinvestment have left the Commonwealth’s transportation system buried in debt and facing an overwhelming maintenance backlog. The Metropolitan Area Planning Council (MAPC) supports more revenue for our transportation system through a combination of small, medium, and large revenue raising mechanisms. The State’s entire transportation system needs billions of dollars to meet the needs of today and tomorrow.

Through a series of policy briefs, MAPC has highlighted three ways to make the State’s current transportation revenue streams align more closely with other states’ and major metro areas’ policies across the country. MAPC proposes to raise fees on TNC (Transportation Network Company) trips, a new-to-Massachusetts fee for retail deliveries, and the creation of a commercial parking tax. Conservatively, the briefs estimate that these policies could raise somewhere from $250 million to a little over $400 million per year. While these new revenue sources would not solve the transportation funding gap, they would put us in line with practices and policies in other states and metro areas and would help raise critical funds through relatively easy measures of collection.

To address the adverse effects of congestion and emissions, and to find new methods of revenue generation for continued investment in transportation infrastructure, many cities and states impose assessments on TNCs. A revised TNC assessment in Massachusetts could generate an estimated $120 million to $140 million annually. The first briefing provides an overview of the various TNC assessment methods currently employed by cities and states, alongside recommendations for the Commonwealth to consider.

The second memo provides information on how a range of U.S. cities tax parking. MAPC estimates that commercial parking taxes in Boston and across the Commonwealth could generate at least $29 million to $74 million in revenue – and probably much more – to fund municipal and statewide transportation needs, including public transit systems.

To mitigate the adverse effects of roadway wear and tear, congestion, and emissions from retail deliveries, specifically from online purchases that have increased dramatically in the past few years, Massachusetts should consider implementing a new fee for retail deliveries. This fee would be added to the cost of goods delivered by motor vehicle to customers’ homes or businesses. The estimate is that a retail delivery fee in Massachusetts could generate between $104 million and $192 million in revenue annually, supporting both municipal and statewide transportation needs. The third briefing provides an overview of retail delivery fees currently in place or being considered outside Massachusetts.

MAPC notes that transportation taxes and fees should be aligned with climate and equity goals. Pricing solutions should not disproportionately burden low-income populations, and investments should be geared toward mode shift away from single-occupancy vehicles. Cities and towns should play a larger role in both influencing travel behavior and advancing transportation infrastructure projects, and therefore should be given more tools to raise revenue locally.  

Considered together, these three funding opportunities will not fully address the State’s need for additional transportation revenue. But they are proven examples of efforts underway or already established across the country to raise money for transportation. MAPC will soon be releasing a comprehensive list of recommendations to address transportation finance, some of which will include broad-based taxes and fees that would help us finally ensure that our transportation system is fully funded. Those recommendations will be made available after Labor Day at mapc.org/resource-library/transportation-funding-opportunities, along with the three papers made available today.