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| | Meals Tax up for discussion... | |
- Quote :
- By George Morse- Seekonk Star
SEEKONK - It could bring in more than $400,000 a year but a few town officials aren’t quite sure a local option meals tax is right for Seekonk and its many restaurants.
At a Seekonk Board of Selectmen meeting in July, Town Administrator Michael Carroll provided estimates from the Massachusetts Department of Revenue (DOR) on how much the town could gain by implementing a meals tax, which would add an additional 2 percent tax to restaurant bills. Of this 2 percent, 1.25 percent would remain with the state while .75 percent would be returned to Seekonk.
The option of assessing this tax was left up to individual cities and towns by the state legislature and was put into place last month.
According to the DOR estimates, Seekonk could receive about $418,000 a year if a local option meals tax was approved by a town meeting vote. Also, the town could receive a $66,000 bump in revenue by choosing to increase a hotel room tax from 4 to 6 percent, also a local option.
In the current fiscal year, local aid coming to Seekonk from the state was cut by more than $500,000. Despite the meals tax estimated ability to compensate for this, the majority of selectmen didn’t seem on board with the proposal.
Selectman Michael Brady said he was “incensed” that the collection of meals tax funds would be handled by DOR. Mr. Brady argued that if the meals tax is a local option, the town should be able to collect the money itself.
“I don’t trust the state at all,” Mr. Brady said. “If they get the money in their coffers, I don’t trust they’ll give it back to us.”
Chairman Francis Cavaco agreed.
“Of course you’re not going to see that money,” he said.
As a way to first see how the state handles distribution of meals tax funds, selectman Robert Richardson proposed putting off a town meeting vote on the issue until the annual spring town meeting in 2010.
“We should wait and see what happens,” Mr. Richardson said.
Advertisement Still, selectman David Parker argued that delaying a vote on the issue could cost the town money.
“I don’t care if the estimate is five bucks. It’s more than I have now. Why would you delay bringing money in?” Mr. Parker said.
On the menu
Local restaurant owners gave mixed opinions on what the tax could do to business.
Peter Delis, owner of Toti’s Grilled Pizzeria, said he is against any new taxes. When asked if he thought it would affect business, Mr. Delis’ answered succinctly.
“Of course,” he said.
On Fall River Avenue, Mary Beth DeLeo’s Breakfast House owner Mary Beth DeLeo said she too isn’t in favor of additional taxes. Even without the meals tax, Ms. DeLeo said her business heard a couple complaints this weekend when the state sales tax was bumped from 5 percent to 6.25 percent.
At the Seekonk Pizza Factory, however, owner and operator Scott St. Pierre said he’s not afraid of the town potentially adopting the meals tax.
“It’s an extra couple bucks here and there,” Mr. St. Pierre said. “The average person spends about 15 bucks. It’s an extra 20 cents.”
Mr. St. Pierre added that even if a meals tax were to be put in place, Seekonk would still be competitive with nearby East Providence and Providence where sales and meals tax add up to 8 percent.
The earliest this tax could be imposed would be Oct. 1 if a town meeting vote approved the measure by Aug. 31. As of this publication, no town meeting vote on a meals tax has been scheduled. | |
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Thu Aug 06, 2009 7:47 pm seek2mend