Saturday, January 20, 2024

Local taxes on meals, hotels could rise under Healey plan

"Governor Maura Healey, who this week swore off raising state taxes, unveiled sweeping legislation Friday that would allow towns and cities to raise their taxes on hotel stays, cars, and meals by as much as 33 percent to help bolster their local coffers.

The sprawling bill has the backing of municipal leaders, and if embraced by the Legislature, could generate more than $150 million in new annual tax revenue for towns and cities juggling tight budgets, state officials estimated.

Healey also is seeking a series of other major changes, including allowing local officials to set caps on the number of liquor licenses distributed in their city or town, a power long-held by the Legislature. The governor said she is proposing to make permanent a raft of pandemic-era rules, such as allowing restaurants to sell to-go cocktails.

Speaking to reporters Friday, Healey said the package of changes “empowers the local communities” and does not affect the revenue the state relies on for its budget."
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