SECTION 1. Chapter 63 of the General Laws is hereby amended by inserting after section 39C the following section:-

Section 39D. (a) Every business corporation, non-governmental employer, partnership or disregarded entity shall pay, on account of each taxable year, the transportation excise tax provided in subsection (b).

(b)(i) If the business corporation, non-governmental employer, partnership or disregarded entity employs 100 to 499 in-state Massachusetts employees, it shall pay an excise tax amount equal to the product of (A) the ratio of the in-state Massachusetts employees of the business corporation, partnership, or disregarded entity to the total number of in-state Massachusetts employees from the aggregate of all business corporations, partnerships or disregarded entities owing excise tax under this clause, multiplied by (B) the total excise tax amount under this clause. The total excise tax amount from all business corporations, partnerships or disregarded entities shall be $80,000,000 (approximately $100/employee based on 2017 employment data from the executive office of labor and workforce development);

(ii) If the business corporation, non-governmental employer, partnership, or disregarded entity employs 500 to 999 in-state Massachusetts employees, it shall pay an excise tax amount equal to the product of (A) the ratio of the in-state Massachusetts employees of the business corporation, partnership, or disregarded entity to the total number of in-state Massachusetts employees from the aggregate of all business corporations, partnerships or disregarded entities owing excise tax under this clause, multiplied by (B) the total excise tax amount under this clause. The total excise tax amount from all business corporations, partnerships or disregarded entities shall be $50,000,000 (approximately $225/employee based on 2017 employment data from the executive office of labor and workforce development); or

(iii) If the business corporation, non-governmental employer, partnership or disregarded entity employs 1,000 or more in-state Massachusetts employees, it shall pay an excise tax amount equal to the product of (A) the ratio of the in-state Massachusetts employees of the business corporation, partnership, or disregarded entity to the total number of in-state Massachusetts employees from the aggregate of all business corporations, partnerships or disregarded entities owing excise tax under this clause, multiplied by (B) the total excise tax amount under this clause. The total excise tax amount from all business corporations, partnerships or disregarded entities shall be $170,000,000 (approximately $350/employee based on 2017 employment data from the executive office of labor and workforce development).

(c) The total transportation excise tax assessment amount from all business corporations, non-governmental employers, partnerships, or disregarded entities in this section shall not exceed $300,000,000.

(d) Annually, before October 1, the department of revenue, in consultation with the executive office of labor and workforce development, shall establish each liability of a business corporation, non-governmental employer, partnership or disregarded entity to pay the excise tax. Each business corporation, non-governmental employer, partnership or disregarded entity shall pay the excise tax amount to the department for deposit in the Commonwealth Transportation Fund established in section 2ZZZ of chapter 29 for financing transportation related purposes.

(e) The department of revenue, in consultation with the executive office of labor and workforce development, shall establish by regulation the mechanism for administering the excise tax payor’s obligations under this section and shall deduct from an individual entity’s liability any regular annual payments said entity makes to or for in-state Massachusetts employees for public transit subsidies.

(f) The department of revenue, in consultation with the executive office of labor and workforce development, shall establish by regulation an appropriate mechanism for enforcing an excise tax payor's liability to the Fund if an excise tax payor does not make a payment to the Fund. Such enforcement mechanism may include assessment of interest on the unpaid liability at a rate not to exceed an annual percentage rate of 18 per cent and late fees or penalties at a rate not to exceed 5 per cent per month.

(g) For the purposes of this section the term “employee” shall have the same meaning as provided in clause (h) of section 1 of chapter 151A.

SECTION 2. The department of revenue shall promulgate regulations to implement this act within 180 days of the effective date of this act.

SECTION 3. Section 1 shall take effect on January 1, 2021.