Massachusetts is one of 27 states that charges residents just to own a vehicle. Basically, the tax is $25 for every $1000 of valuation, with other considerations.

"Massachusetts tends to provide more social services and other services and have higher cost than many other states," she said. "So they look for a variety of sources of revenue and more sources of tax revenue than many other states".

It is a state tax, but cities and towns collect it.

Though many think it's used for streets and roads, transportation or other infrastructure, that's actually not the case. The money goes into the general fund, so every municipality can use it however it wants.

 Boston — Today, at the Massachusetts Municipal Association's Connect 351 conference, Governor Maura Healey announced that she is filing legislation to reform the Chapter 90 roadways program to substantially increase funding for municipal roads and bridges. The Governor also announced that next week, she will file the Municipal Empowerment Act 2.0, which proposes to give municipalities more tools and flexibility to deliver high-quality services for their residents.

The Chapter 90 bond bill the administration is filing today authorizes the state to borrow $1.5 billion over the next five years to improve local transportation networks. Working in tandem with the administration’s recently filed FY26 budget proposal (House 1), the bond bill proposes using voter-approved Fair Share surtax revenues to expand capital capacity, enabling $300 million in annual Chapter 90 funds, a 50 percent increase over the traditional $200 million.

The Chapter 90 program provides municipalities with annual funding for capital improvements on local public ways—improving pavement quality, building sidewalks, restoring bridges, and financing bike and pedestrian infrastructure. Under the program, Massachusetts municipalities are allocated a portion of total program dollars, which allows them to evaluate their unique transportation needs and goals and distribute funding dollars accordingly.