Summary of Current Environmental Tax Reform Legislation

We support the following bills which use the tax system to encourage environmentally beneficial behavior and discourage environmentally harmful behavior.

S.1752/Tax Study Commission
This bill establishes a special commission to investigate and study the state’s tax structure and its effect on the economy and the environment. The commission would review state tax policies to determine ways to advance environmental and economic goals through tax-related price signals.

S.1110/Sales Tax on Pesticides
Massachusetts is one of 29 states that exempt pesticides from the state sales tax. Given the harmful health effects related to pesticide use and the need to promote less pesticide intensive or pesticide free alternatives, this policy sends a wrong signal by making pesticides cheaper to use. This bill lifts the sales tax exemption and devotes the revenue to promoting integrated pest management.

S.1639/Commuter Choice
Our roads are more and more clogged, and still commuters choose their cars. This bill provides a tax credit to employers that help them promote alternatives to driving.

H.3840/Green Buildings
This bill provides a tax credit for developers, building owners and tenants who, for commercial and multi-family residential buildings, invest in measures to increase energy efficiency, improve indoor air quality, and reduce the environmental impacts of their buildings (e.g., via the use of recycled building materials or water conservation/reuse measures).

H.3649/Vehicle Feebate
Gas-guzzling SUVs are currently exempted not only from vehicle emission standards but also from the federal "gas guzzler" tax. This bill addresses that inequity by establishing a sliding scale for sales tax on vehicles including cars, vans or light trucks at a rate between 0 and 10 percent. The rate would be based on the size class for each vehicle (using the federal standard), and the fuel efficiency of the vehicle (mpg rating) within its class.