Plan proposes that municipalities can opt into an additional 5% surcharge atop the EXCISE TAX bill

Healey’s plan will allow municipalities to tax meals, hotels and vehicles in the following way:

  • Municipalities currently tax motor vehicles by using a formula based on the vehicle’s valuation, which depreciates with age. The Governor’s plan proposes that municipalities can opt into an additional 5% surcharge atop the EXCISE TAX bill.
  • The legislation will also increase the maximum local option LODGING TAX on hotels, motels, and other rentals to 7% from 6% of the price of a room. For Boston, that would go up to 7.5% from 6.5%.
  • The maximum local option MEALS TAX would rise by over 30% to 1% from .75% of the sales price of a meal at a restaurant or local store.

Mass Fiscal Alliance has fought similar tax proposals over the last 3 years, but can only do that with citizen support.  They ask that readers go to the Mass Fiscal Alliance web page and fill out their Call to Action (link below)

https://www.votervoice.net/MASSFISCAL/Campaigns/111518/Respond

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