New taxes were eliminated from two major bills.
2 Gov. Baker Vetoes Benefit Small Biz
Gov. Charlie Baker recently used his veto pen to strike down two measures that would have increased costs for small business owners. Here’s a look at the bills.
Community Benefit Districts
While Baker did sign an economic development law into place, he vetoed partof the bill that would have allowed “community benefit districts,” in which a group of property owners could agree on assessments for improvements. The bill stipulated that cities and property owners could create these districts to fund services in downtown areas if there were signatures from property owners of at least 50 percent of the assessed value in the district, and then all property owners in that district would pay into the fund based on a fee structure.
Baker said there were too many unanswered questions about how this would work, as well as took issue with the fact that creation of the districts wouldn’t require a majority of affected property owners. NFIB/MA supported the veto because passage of the provision would have made Main Street businesses liable for new taxes.
Miles Traveled Tax
Earlier this summer, the Massachusetts Legislature passed a road and bridge funding bill that included a provision authorizing the state to apply for federal funding to test a mileage tax traveled pilot program. Under the program, a new tax would have been imposed on drivers based on how many miles they travel.
Baker noted that this tax has the potential to inflict disproportionate burden on certain drivers, such as those in western Massachusetts, where the distances are farther and there are fewer public transportation options. NFIB also supported this veto, given that consumers are taxed enough already and don’t need an additional transportation tax.
