Massachusetts has passed a couple of local option taxes that allow municipalities to levy a surcharge on restaurant meals and hotel rooms. The state has also put a surcharge on restaurant meals of 1.25%. Cities and towns have the option of adding an additional .75% to the state surcharge. The tax will take effect on October 1 and the state will begin collecting their portion. In order for the town to levy their percentage, the local legislature, the Town Meeting in Dartmouth's case, must vote to accept the section of Mass General Law (Chapter 64L section 2a) that allows the tax. See the bulletin from the Department of Revenue (DOR) here that details the steps needed. The DOR has also issued a spreadsheet...
... that estimates the revenue that could be raised by the town in FY2010. The spreadsheet in MS Excel format is at this link.
The meals tax is estimated to net about $440K for the town while the hotel room tax would raise about $33K per percentage adopted. The town can levy up to 2%.
A special Town Meeting would have to convene before Aug 31st and vote to accept the new tax statute. The Select Board has scheduled a hearing on Aug 3rd to here from the public on the new tax and to deliberate on calling for a Town Meeting.
hat tip to ML Nunes for the information from the DOR
Wednesday, July 22, 2009
Local option taxes
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11 comments:
Just the first in what will be the many new taxes to come in the future. There's no talk of changing how government is run, just more taxes. No real pension reform, just more taxes. No eliminating state mandates, just more taxes. That song "Taxman" by the Beatles won't sound so ridiculous after our government is through with us. Maybe Bill could post that for us. Haven't heard it in a while but I think I remember it well enough to know there was a lot of truth in it.
More taxes for sure but don't forget to mention more regulations about everything that can then be SELECTIVELY enforced upon the peasants while the lords and masters live freely.
This is a tax they have been working towards for many years. 1% of a $50 bill at a restaurant is 50 cents. It is reasonable and a tax of choice that does not tax a necessity, like gas or food.
You don't eat food at restaurants???
8:01- it is a choice to eat food at restaurants. If you don't want to pay the tax, cook the burger at home.
Another tax..another dime..another dollar. FOR WHAT?? We have had pay as you throw, fees raised..
If you think non-Dartmouth people are going to be ones to contribute the most to our bills, think again. Select persons should be looking to cut costs, not raise taxpayer more money from Dartmouth taxpayers.
Dear Select Board Members,
Though I am unable to attend tonight’s meeting, I did wish to express my disapproval of the proposed additional 2% tax on meals. Instead of adding another tax I would hope that the Board would be looking at ways to eliminate or at least reduce taxes and fees. There is a temptation to think that others will be contributing to our tax base when they eat at our restaurants. Be not deceived. It is Dartmouth people who frequent our restaurants. When other towns raise their fees with the 2% tax, let’s hope that non-2%-taxed Dartmouth eateries will increase their business.
Jackie Beckmann
I would like to point out that an additional 1.25% will be added to all restaurant meals on Oct 1. That is the portion of the increase that the state will assess. At issue is whether or not the town will choose to assess the .75% which is the local option portion. Together, the 1.25% that the state gets and the .75% that the town could assess come to a 2% increase.
Dartmouths share? whats that 75 cents on a $100 tab? 15 cents on 50 dollar check. Come on people save you breath for something important.
Thanks Bill, for the added information...only 75c..only 2.00 a bag (plus annual fee)for garbage..only a small % added to our taxes for historic etc support..what is left to tax?
The .75c ..garbaqe..historic..only a few cents here and there..
What town expenses can the SB cut? None? What will be the tipping point? house values lower (that has already started with more to come). What is the total of fee increases in the past 5 years? Is the SB powerless?
Jackie Beckmann
I was only pointing out that the increase of 1.25% will definitely occur.
The Select Board and town have been reducing costs. There have been significant savings on health insurance already. We have started on departmental consolidation and there is more to do there. We are looking at regionalization and may find some savings there too. However the state has made cuts to areas that were counted on and the town is on the hook for the difference. One such area is Quinn Bill funds for police salaries. It looks like the town will have to pay the difference between the state's reduced funding and the actual cost. This local option tax could help make up that difference. Chapter 70 school aid was cut 2%. Again an area where the funds from a meals tax could be used. We did not fund several sorely needed capital projects, buy police cars to replace those that are worn out, or fund road maintenance at a level that will allow us to keep the roads that we have in good shape. There has to be a balance between revenue and spending. We have made some strides in reducing spending and there is more that can and will be done. However the state has gone back on some of the funds that they promised and a local option tax may allow us to make up some of the difference. The Town Meeting can decide if they want to support that. I will vote to let them make that choice. That is the role that the Select Board has in this tax increase, we can put it to the Town Meeting. They get to decide.
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