local option taxes

The meals tax, a local revenue policy which has provided much relief to cities and towns in hard economic times:

As of June, 146 municipalities had adopted a local meals tax, which lawmakers approved in 2009 to give towns and cities another way to collect local revenue as state aid and property tax collections sank during the recession.

“The fact that such a substantial number has adopted it already is not only impressive, but speaks to the fact that this is a valuable tool," said Geoff Beckwith, executive director of the Massachusetts Municipal Association.

"Every municipality is combing its budget these days for any place to have savings or to cut services," said Betsy DeWitt, Brookline's selectmen chairwoman. "(The meals tax) has been a contributing factor for us, such that we've been able to keep our services level and intact." [Full Article: Wicked Local - The Bedford Minuteman]

The [Randolph] Town Councilors’ view on the local options meals tax has shifted. After denying an additional meals tax last year, the Council voted, 5-4, to add an additional 0.75-percent to the state’s current 6.25-percent meals tax to generate revenue April 11. Although the council voted against the meals tax last year, it did adopt the 2-percent hotel room tax. Councilors Paul Meoni, Paul Fernandes, Bill Alexopoulos and Ken Clifton voted against the meals tax, but the other councilors said the town needs the extra $400,000 that the tax increase is estimated to generate. [Full Article: Randolph Herald]

Mayor Thomas M. Menino will unveil a budget today that may be most notable for what it does not include: the threat of big layoffs… But there are still cuts on the table. City workers would be pulled out of five more community centers. The Boston Public Library would lose $230,000, reducing its book budget and ending Sunday hours at the main branch… Property taxes are expected to bring in 4.4 percent more because of higher rates and new growth. The hotel tax is expected to net the city an additional $17.5 million. And the first full year of a local meals tax will bring in another $1.6 million. Pressure on large nonprofits is also expected to help elicit almost $7 million more voluntary payments from hospitals, universities, and other large institutions exempt from property taxes. [Full Article: Boston Globe]

Communities that have taken the authority offered by the Massachusetts Legislature to impose a meals tax have generally found they are bringing in more revenue than expected. Seventy-three communities in Massachusetts have adopted the tax and many have collected more money than predicted for October, the first month diners were subject to the levy. [Full Article: Boston Herald]

In Bridgewater Mass.

On July 31st in the Enterprise

Bridgewater officials turn up noses at meals tax

Interim Town Administrator Jeff Ritter proposed putting the meals tax on the warrant for a special town meeting on Aug 18. He said Aug. 31 is the deadline to approve the tax if the town wants it to go into effect on Oct. 1.

Ritter said the state Department of Revenue estimated how much money each community would raise by enacting the tax. According to the DOR, Bridgewater would take in $209,000 annually.

On the same day in the Enterprise

Cuts force Bridgewater senior center to close two days a week

With a $45,000 budget, the center has been forced to close some days.

And the day before in the Enterprise

Bridgewater-Raynham eliminates middle school sports programs

Officials say cost of soccer, basketball and baseball is estimated at $60K

Geez they could have $104,000 left over.

The state Senate voted last night to increase the sales tax, lift the sales tax exemption on alcohol, and allow cities and towns to raise meals and hotel taxes, brushing aside criticism that higher taxes would hurt Massachusetts businesses by driving consumers over the border, particularly to tax-free New Hampshire. The Senate plan, which cleared the House in April, would push the sales tax from 5 percent to 6.25 percent, while generating an estimated $633 million to offset deep cuts in services for the poor, elderly, and disabled. [Full Article: Boston Globe]

Melrose Mayor Robert J. Dolan is poised to be elected president of the Massachusetts Mayors' Association at the group's annual meeting Jan. 24. The association's nominating committee voted Dec. 10 to recommend him for the unpaid position… Among the changes Dolan will be promoting are proposals to close telecommunications tax loopholes; to allow cities and towns to design their healthcare plans without collective bargaining; and to allow a reduction in the level of union approval needed to join the state's health insurance system. He also plans to advocate for allowing cities and towns to adopt a local meals tax; to increase the allowable local hotel tax; to remove obstacles to regionalizing services; and to allow municipalities to require drug and alcohol tests for public safety personnel without collective bargaining. [Full Article: Boston Globe]