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Muni Matters: Locals on Licensing | Towns Seeing Green

February 7, 2022 by State House News Service

On Industry’s Anniversary, Legal Marijuana Sales Up To

Mayors, Managers Line Up Behind Driver’s License Bill | Marijuana Tax Revenue Surpasses Alcohol


Mayors, Managers Line Up Behind Driver’s License Bill

Legislation that would allow undocumented immigrants in Massachusetts to apply for and get standard state driver’s licenses now has the backing of 15 mayors and municipal managers. The local officials wrote to the Transportation Committee ahead of Wednesday’s bill reporting deadline — and before the panel opted to take another month to consider the bill — to make their case it would “provide broad benefits to our municipalities.”

“Our streets will be safer for everyone when all drivers have passed road tests, and vehicles are registered and insured,” the letter said. “Indeed, many of our policy chiefs support the bill as a public safety tool and agree that it will enable law enforcement to better identify individuals at traffic stops or scenes of an accident.” Mayors and managers from Amherst, Arlington, Boston, Brockton, Brookline, Cambridge, Chelsea, Malden, Medford, Newton, Randolph, Revere, Salem and Swampscott signed on, according to the Metropolitan Area Planning Council, which led the creation of the letter. In Cambridge, both Mayor Sumbul Siddiqui and city manager Louis DiPasquale were signatories.

“All Boston and Massachusetts adults deserve access to driver’s licenses regardless of immigration status,” Boston Mayor Michelle Wu said. The bill (H 3456, S 2289) was filed by Rep. Tricia Farley Bouvier and Sen. Brendan Crighton and earned a favorable committee report last session. Gov. Charlie Baker, a Swampscott Republican, has said he opposes the measure. His town administrator, though, is among those to voice support. “Swampscott is one of the most densely settled communities in the Commonwealth,” town administrator Sean Fitzgerald said in a statement from MAPC. “As we look to the future, it’s clear we need a focus on pedestrian safety and complete streets to help balance the needs of all modes of transportation.” – Katie Lannan/SHNS


Marijuana Tax Revenue Surpasses Alcohol

With the fiscal year halfway over, state revenue from the marijuana excise tax is outpacing revenue from alcohol. As of December, the state had collected about $74.2 million in marijuana excise tax so far for fiscal year 2022, according to the Massachusetts Department of Revenue. That month, tax revenue from alcohol reached $51.3 million fiscal year-to-date, the department’s data shows. Fiscal year 2021 was the first year that weed overtook booze, with the state collecting $92.7 million from alcohol and $112.4 million from the marijuana excise tax.

 In fiscal year 2020, marijuana had lagged behind at $51.7 million in revenue, compared to $87.6 million from alcohol. The taxes on cannabis and alcohol are structured and applied differently. The state levies a 10.25 percent excise tax on marijuana purchases by the consumer in addition to the local option tax of up to 3 percent and the state’s 6.25 percent sales tax. The excise on alcohol is based on volume and is paid by the producer. The new legal market has also been a boon for cities and towns. Revenue from the local option tax on marijuana had reached nearly $20.6 million for FY22 as of December, as compared to about $13.3 million in December of FY21. Local revenue has been growing steadily over the last three years, save for a brief downturn caused by pandemic lockdowns.

Between December 2018 and May 2019, adult-use marijuana brought in nearly $2.9 million in local tax revenue, according to the Massachusetts Department of Revenue, and the following fiscal year, which ended in June 2020, cannabis drew roughly $14.4 million for cities and towns. In FY21, the local option tax brought in more than double that at $31.3 million. – Meg McIntyre/SHNS

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