TAXES: Selectmen Mull Meals & Lodging Tax
The Local Option Tax, where cities and towns across Massachusetts can impose a 3/4 of 1 percent sales tax on meals and lodging is again under consideration by Selectmen as a means of raising revenues for the town. This tax is on top of the 6.25 percent state meals tax.
Selectmen looked at this several years ago when the state authorized communities to add the local tax but opted not to adopt it at that time. When it first became available, if Groton had adopted this, the town would have received $55,000 in FY10; $90,000 in FY11; $97,000 in FY12; $100,000 in FY13 and so far in FY14 that number would be $76,000 estimated to rise to $110,000 to $115,000 for the full year
According to the MMA (Massachusetts Municipal Association) website, since the state authorized this tax, close to half the cities and towns in the Commonwealth have adopted it and used it to balance budgets and fund services affected by local aid cuts.
Selectmen Josh Degen raised the Local Option Tax to his fellow Board members for their consideration, as the budget for the town is tight and he felt it is necessary to look for additional revenue. He said that there would need to be public hearings and potentially an article on the Fall Town Meeting warrant for voters to decide, noting that the town has "a tight levy limit" for the coming year.
Finance Committee member Bud Robertson said he agreed that the town needs to look for revenue and 75 cents on a $100 restaurant bill won't matter. But, he said that "for people who run restaurants, what will it take for them to implement this?"
Selectmen Chairman Peter Cunningham said the Board needs to reach out to restaurant owners and bring the option back for a future agenda.
The Board ratified the Town Manager's appointments to the newly formed Energy Committee and included Groton Electric Light Department Manager Kevin Kelly; Land Use Director Michelle Collette, and Takashi Tada, from the Conservation Commission. The Board also ratified Haddad's appointment at the request of Police Chief Donald Palma of Ian Brown as Relief Dispatcher.
