Mass. Lawmakers Eye Local Water Fees in Tax Reform Push

We survived Governor Maura Healey's proposals to tax Nana's prescription drugs and candy for the kids, but Massachusetts isn't done with us yet. Portions of the governor's local option tax package will be before legislative committees in September.

Healey's expanded local option meals and hotel taxes are back, as is the proposed tax on your excise tax. You can't make this up; a tax on a tax.

But wait, there's more!

State House News Service reported the Massachusetts House has given "initial approval to a bill that would allow municipalities, water or wastewater districts, and stormwater utilities to collect a 'reasonable fee' to offset costs from increased water withdrawals and other environmental impacts caused by new developments."

A companion bill is making its way through the Massachusetts Senate.

"If adopted by local governing bodies, the fees would flow into 'Sustainable Water Resource Funds' that could be used to resolve environmental issues stemming from wastewater or stormwater discharges, and 'to sustain the quantity, quality, and ecological health of waters of the commonwealth,'" according to SHNS.

Supporters believe the legislation could help local communities manage costs associated with contaminated water seeping into waterways beyond what property taxes can cover.

Adoption of the local option water fee would be up to city councils, selectmen and water and wastewater districts. The fee would allow local communities to establish a "water banking system" to help fund water and sewer-related infrastructure projects.

The legislation has been filed before, but has never been approved. House sponsor Rep. Ted Philips said the bill faces no "formalized opposition" in the House.