Gov. Baker Opposes Gas, Corporate Tax Increases

BOSTON, MA — Massachusetts Gov. Charlie Baker signaled opposition to gas and corporate tax increases House leaders proposed this week as part of a massive transportation bill.

"I don’t believe we need to raise taxes to fund transportation at this point in time," Baker said in a press briefing Thursday, one day after legislation that would raise $612 million in new taxes and fees to pay for transportation system upgrades was introduced in the House of Representatives.

In addition to raising the state gas tax to 29 cents from 24 cents, or 20.8 percent, per gallon, the legislation calls for increased fees on ridesharing trips offered by companies like Uber and Lyft, as well as the first increase to the state's corporate tax minimum in a generation. In his own transportation proposal introduced last month, Baker had called for more modest increases on ridesharing fees.

According to Commonwealth. Baker noted his budget proposal actually designated $13 million more for the MBTA than the $187 million House proposal. "I was disappointed that somehow the House actually funds less public transportation that we did in our budget, and we obviously want to have a conversation with them about that," Baker said.

Among the taxes and fees proposed Wednesday:

• A nickel increase in the state gasoline tax to 29 cents per gallon for regular and 33 cents for diesel. Lawmakers said the increase would generate an additional $182 million to $207 million per year.
• Increasing the fee for non-shared Uber and Lyft rides to $1.20 from 20 cents per trip. That was similar to the $1 fee increase Gov. Charlie Baker proposed last month. But legislators also want to increase the fee for non-shared luxury rides to $2.20 per trip. The fee for shared rides would remain at 20 cents.
• The creation of a nine-tier system for corporate tax minimums, which would add between $100 million and $150 million in new revenue. Under the current single-tier system, most companies pay $456 per year, regardless of how big they are. The new tax would see the biggest companies in the state paying $150,000 per year.
• An end to a provision in state law which allowed car rental companies to forgo paying sales tax, which could raise an additional $110 million per year.