Mass. Lawmakers Reject Gov. Healey’s Local Tax Plan Again

A 19th-century English educator named William Hickson said, “If at first you don’t succeed, try, try again.”

Those words weren’t lost on Massachusetts Governor Maura Healey, who after failing to win approval of a package of local option taxes last year, tried again this year with much the same result.

Try, try again Healey did, but unfortunately for her, this is not England, and it’s not the 19th century.

What Was in the Municipal Empowerment Act?

In 2024, Healey tried to convince the Massachusetts Legislature to allow local communities to impose new and increase existing local option taxes on things such as meals and hotel stays, and added a new tax on the excise tax you pay for your motor vehicle.

It didn’t go so well in 2024, so Healey figured she’d try again in 2025 with the Municipal Empowerment Act, the same old thing with a new name. Both times, Healey’s tax plan was tossed on the trash heap by lawmakers.

Local Leaders and Activists Clash Over Tax Plan

According to Boston Public Broadcast Station GBH, when Healey first filed the legislation, she said it would “give local leaders the ability to make decisions that are best for their communities,” and “help them avoid raising property taxes on residents who are already struggling with the high cost of housing.”

The Massachusetts Municipal Association endorsed Healey’s Municipal Empowerment Act, while the Massachusetts Fiscal Alliance strongly opposed the proposal.

The Hampshire Gazette reported in February that local leaders were “excited” that Healey refiled the legislation, noting the “potential it brings for more robust public conversations around municipal revenue streams and quality services.”

The Political Future of Local Option Taxes

Both versions of Healey’s tax plan died in committee without so much as a vote. Whether she tries again next year could well depend on what the voters have to say in November.