NEWS: Proposal to Levy Local Meals Tax Meets Resistance [with video]

Fall Town Meeting voters will ultimately decide whether or not they want to impose an additional .75 percent to the meal tax on the small locally-owned businesses that serve food in Groton. In the past Selectmen have opted not to bring this choice forward, but now seeing an opportunity for some significant revenue, they will ask voters at Fall Town Meeting to make the decision.

According to Town Manager Mark Haddad, the total tax on the food bill will be seven percent - up from the current 6.25 percent. This full seven percent would be sent to the state, which in turn, will send the .75 percent collected from the businesses back to the town.

Haddad calculated that in 2014, the return could reach more than $100K in revenue for the town. If the Local Meals Tax Option were in effect in past years, he said, it would have yielded $100K in 2013; $97K in 2012; $90K in 2011 and $55K in 2010.

Selectmen Chairman Josh Degen pointed out that close to 50 percent of the cities and towns in Massachusetts have implemented the meals tax. In addition the meals tax in New Hampshire is seven percent.

Local small business owners Ozzie Filho of Filho's Cucina and Rick Santiago of Johnson's Restaurant voiced their concerns to the Board about taking such action.

Santiago said that this tax would be a burden on small businesses. "We can't take a tax. Our food costs are going up and we eat this (increase) and don't pass it on to our customers...It may seem little to you guys, but it is big to us."

Filho echoed Santiago's concerns, stating that for small businesses, the state raised the meals tax a while ago and now it is raised again. He stressed,".75 percent doesn't seem like a lot, but it is a lot to us...My customers come because it is affordable, some come six days a week. A 7 percent meals tax and an 18 percent tip is 25 percent of the total cost [of the bill]. It will hurt me and it will hurt Rick." He added, "I have never cut on quality on anything...and not gone up on my prices, but this will reduce the number of times customers come in."

Chairman Degen stated, "I think this is small potatoes. Yes it's a tax. Yes it's more money, but it is not going to affect your businesses. We are talking about pennies. This increase would amount to an additional seventy five cents on a $100 food bill.