Showing posts with label sales tax. Show all posts
Showing posts with label sales tax. Show all posts

Saturday, August 10, 2024

State tax sale weekend, yup, this one, this year, is SATURDAY & SUNDAY (810-8/11)

"The state’s annual sales tax holiday arrives this weekend, bringing some relief to shoppers and the chance to save on some big-ticket items.

On Saturday and Sunday, retail items under $2,500 will be exempt from the 6.25 percent Massachusetts sales tax.

Only items bought for personal use are eligible. Purchases by corporations or businesses, or by individuals purchasing an item for business use, will still be taxed.

Here’s what to know as you plan your weekend of shopping."
Continue reading about the sale tax weekend -> (subscription maybe required)
State tax sale weekend, yup, this one, this year, is SATURDAY & SUNDAY (810-8/11)
State tax sale weekend, yup, this one, this year, is SATURDAY & SUNDAY (810-8/11)

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."
Continue reading the article online (Subscription may be required)

Wednesday, January 25, 2023

Consensus on the MA revenue forecast remains to be set but 2 hours of hearing updates gets it started

"TOP BUDGET OFFICIALS from the Legislature say they intend to abide by the will of the voters and make sure all revenue from the new millionaire tax goes to “new initiatives” in transportation and education.

Exactly what would qualify as a “new initiative” hasn’t been decided yet (is a new bus or subway car a new initiative?), nor has any decision been made on whether the money would be evenly split between education and transportation.

“That’s all to be discussed,” said Sen. Michael Rodrigues, the chair of the Senate Ways and Means Committee."
Continue reading the article

"STATE REVENUES are expected to rise slightly in the coming fiscal year, but top budget officials from the Legislature and Healey administration say it’s still unclear whether there is enough money to enact permanent tax cuts.

At the end of last year’s legislative session, former governor Charles Baker and Senate leaders wanted to press ahead with $500 million in permanent tax cuts in addition to nearly $3 billion in one-time refunds from the state’s tax cap law."
Continue reading the article

"State revenue officials said Tuesday they could collect at least $1.4 billion — and perhaps up to $1.7 billion — next fiscal year from Massachusetts’ newly enshrined tax on its wealthiest earners, kick-starting months of debate over how to steer the new injection of tax money.

The projection, offered Tuesday in a legislative hearing, marked the first official estimate state officials have provided on what they think the so-called “millionaires tax” will contribute to coffers in its first year since taking effect Jan. 1. Narrowly passed by voters on the November ballot, the measure increases the state’s 5 percent income tax rate to 9 percent on annual income exceeding $1 million."
Continue reading the article in the Boston Globe (subscription may be required)

The 2 hour hearing that generated these articles is available for video replay on your schedule  https://malegislature.gov/Events/SpecialEvents/Detail/403/Video1

The Big 3 on budget issues: From left, Matthew Gorzkowicz, Gov. Maura Healey's secretary of administration and finance; Sen. Michael Rodrigues, chair of the Senate Ways and Means Committee; and Rep. Aaron Michlewitz, chair of the House Ways and Means Committee. (Photo by Bruce Mohl)
The Big 3 on budget issues: From left, Matthew Gorzkowicz, Gov. Maura Healey's secretary of administration and finance; Sen. Michael Rodrigues, chair of the Senate Ways and Means Committee; and Rep. Aaron Michlewitz, chair of the House Ways and Means Committee. (Photo by Bruce Mohl)

Saturday, August 14, 2021

Sales tax-free weekend starts Saturday in MA

"It should be a big weekend for television and appliance sales in Massachusetts — the annual sales tax holiday starts on Saturday.

This weekend, shoppers can buy most retail items without paying 6.25 percent in sales taxes, as long as those items cost less than $2,500 each. That means consumers could save as much as $156 per item if they buy on Saturday or Sunday.

Consumers can purchase as many of those products as they want, sales tax-free, even if the total bill exceeds $2,500, according to the Massachusetts Department of Revenue. Certain items are not eligible for the tax exemption, including meals, cars, boats, and utilities. Tobacco and marijuana products, as well as alcoholic beverages, are also excluded."

Continue reading the article online (subscription maybe required)

A customer shops in the appliance department at a Lowe's in Hialeah, Florida. This weekend in Massachusetts, shoppers will get a 6.25 percent sales tax reprieve.JOE RAEDLE/GETTY
A customer shops in the appliance department at a Lowe's in Hialeah, Florida. This weekend in Massachusetts, shoppers will get a 6.25 percent sales tax reprieve.JOE RAEDLE/GETTY


Saturday, October 10, 2020

In the News: decline in cigarette tax stamp sales may exceed forecast

From the Milford Daily News, an article of interest for Franklin:

"Cigarette sales in Massachusetts were down by 24% in August, according to convenience store owners, and the state has seen a nearly $32 million drop in tobacco excise taxes in the three months since its first-in-the-nation ban on menthol cigarettes took effect.

The decline in cigarette tax stamp sales would put Massachusetts on pace to exceed the $93 million in foregone revenue projected by the Department of Revenue last year from the menthol and mint cigarette ban.

The New England Convenience Store and Energy Marketers Association said the ban has pushed sales to neighboring states, including New Hampshire and Rhode Island where overall cigarette sales were up 65% and 17% in August, respectively. New Hampshire saw a 91% spike in menthol cigarette sales alone in August, and Rhode Island’s coffers benefited from 40% bump in menthol sales.

The ban on menthol cigarettes in Massachusetts took effect on June 1, and while public officials were willing to give up some revenue for the public health benefits of banning all types of flavored tobacco, convenience stores say residents are simply bringing the products back from other states."

 


Wednesday, August 26, 2020

In the News: "Gov Baker touts tax-free weekend, $2M local biz ad campaign"

From the Milford Daily News, articles of interest for Franklin:
"Gov. Charlie Baker visited a bicycle shop in Belmont on Tuesday, admitting after a tour that he and his wife, Lauren, have “kicked the idea around for awhile” of buying themselves bikes.

Baker insisted, “No, I wasn’t shopping,” but suggested he might take his own advice this weekend and go out to get himself two new wheels during the the state’s annual sales tax holiday weekend.

“I think it would be great if everybody who’s looking to buy pretty much anything that they’ve been putting off or that they might do at some point down the road to find a way to go out and make that happen,” Baker said Tuesday, after touring the award-winning WheelWorks bike shop, co-owned by Clint Paige.

The official reason for Baker’s visit was to draw attention to the upcoming tax-free weekend and announce a $2 million ad campaign that will run through the end of the year, encouraging residents to shop, dine out and travel at local stores and destinations."
Continue reading the article online (subscription may be required) 


The "My Local MA" web page  https://www.findmylocalma.com/

Gov Baker's press conf video  https://youtu.be/BwxCT9IT-tI

 

Saturday, October 19, 2019

MassBudget: Gas Tax Hikes May Challenge Long-Term Revenue Sustainability and Equity



  MASSBudget     
Gas Tax Hikes May Challenge Long-Term Revenue Sustainability and Equity
Read Our Latest Report Examining The Pros and Cons of Higher Gas Taxes

Raising Massachusetts tax revenue by increasing the state's gas tax would hit low- and moderate-income residents hardest and may be a shrinking source for the state's long-term transportation goals. If policymakers decide to increase the gas tax, its impact could be offset with tax credits for low-and moderate-income households.

Our latest report, The Pros and Cons of Higher Gas Taxes, and How They Could be Offset for Lower-Income Families, models how an increase to the state's Earned Income Tax Credit (EITC) can create a financial buffer for low- and moderate-income families that would be most impacted by an increased gas tax. For example, a 10-cent increase in the gas tax, now at 24 cents, could be offset by an 8 percentage point increase in the EITC, which would benefit families in the lower 40 percent of household earnings. Net revenue to the Commonwealth would be lower, but the financial impact on lower-income households would be offset by the tax credit.


Among the report's highlights:
  • A 10-cent tax increase would represent almost 0.20 percent of income for the lowest-income fifth of households, while households with the highest-income 1 percent of incomes would contribute less than 0.001 percent of their income in gas taxes.
  • Offsetting the impact of a 10-cent gas tax increase on lower-income families would require an 8-percentage point increase to the state EITC match, reducing the revenue gain by $75 million.
  • Including all state and local taxes and fees, the U.S. average gas tax nationwide is 36.17 cents - almost 10 cents above the Massachusetts total rate of 26.54 cents.
  • The number of gallons of gasoline taxed in Massachusetts used to grow substantially faster than the population. For the last two decades the number of gallons taxed per person has declined.
The Earned Income Tax Credit (EITC) is a refundable tax credit for low-income working families that supports about 400,000 households in Massachusetts. "This paper identifies how increasing the Earned Income Tax Credit could support low-income families who'd otherwise bear the greatest brunt of a gas tax increase," said Stephanie Ettinger de Cuba, Executive Director of Children's HealthWatch.   https://childrenshealthwatch.org/  "The EITC is one of our most successful programs at keeping working families out of poverty, with large benefits for children's health and education and maternal mental health. If the increase to this program was large enough, it could be a win-win."


There has been discussion in recent months about a potential increase to the gas tax, last increased in 2013. "Transportation for Massachusetts supports a 25-cent gas tax increase to improve roads, bridges, and transit statewide. To help address equity concerns, it makes sense to pair this increase with low-income tax credits such as a stronger state EITC," said Chris Dempsey, Director of the Transportation for Massachusetts https://www.t4ma.org/ advocacy coalition.


The Massachusetts Budget and Policy Center (MassBudget) produces policy research, analysis, and data-driven recommendations focused on improving the lives of low- and middle-income children and adults, strengthening our state's economy, and enhancing the quality of life in Massachusetts. Connect with us on Facebook and Twitter.
Massachusetts Budget and Policy Center, 1 State Street, Suite 1250, Boston, MA 02109

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Tuesday, September 17, 2019

MassBudget: How Do Mass. Business Taxes Compare to Other States?









  MASSBudget     
MassBudget: How Do Mass. Business Taxes Compare to Other States?

Did you know that Massachusetts has relatively low business tax levels compared with other states? Or that two elements of our state's corporate tax code result in a significant loss of its revenue? That's what you can learn and more in our new series of reports that examine how specific corporate taxes impact the Commonwealth.

The first fact sheet, How Do Business Taxes in MA Compare to Other States?, draws on an analysis of business taxes as a percent of the private economy which was conducted by a national business association, the Council on State Taxation (COST).
The analysis shows that:
  • At 3.9 percent, Massachusetts' total effective business tax rate is significantly below the national average of 4.5 percent.
  • Only eight other states have lower total effective business tax levels than the Commonwealth.
  • Massachusetts' business tax levels rank in the bottom fifth of all states by this measure. 
Our other fact sheets analyze various elements of the corporate tax code. "Together, these reports help us understand that Massachusetts business taxes as a share our economy are relatively low compared to other states, and two business tax provisions that we highlight here appear outdated, ineffective, and unnecessarily costly to the Commonwealth," said Marie-Frances Rivera, MassBudget's President.
 The Single Sales Factor- changes the share of multi-state corporations' profits
One special business tax break- The Single Sales Factor- changes the share of multi-state corporations' profits that are taxable in Massachusetts. This tax break, while showing no discernible benefit, reduces revenue that could be used to invest in our Commonwealth's economy.
As discussed in MassBudget's fact sheet, the Mass. Department of Revenue estimates this tax break will cost the state $400 million in Fiscal Year 2020. Champions of this tax break originally promised that it would be worth the expense by increasing manufacturing employment. But in the years since enactment, Massachusetts has lost about 40 percent of its manufacturing jobs. Only four states lost a larger percentage of their manufacturing jobs than Massachusetts between 2000 and 2014.
Our other new report in this series focuses on the corporate minimum tax in Massachusetts. Corporate Minimum Taxes in Massachusetts Could Be Better Targeted as in Other States, explains how states have long established minimum corporate excise taxes as a backstop to ensure all corporations pay some income tax, regardless of how much they report in profits. The report shows that Massachusetts' corporate minimum tax has not been changed in 30 years.
Since 1989:
  • $456 is the minimum amount corporations are required to pay in Massachusetts, regardless of their size.
  • 70% percent of all businesses that filed corporate excise taxes in Massachusetts paid this in 2015 - including many, very large corporations.
  • According to the Department of Revenue, in 2004, over 2,000 corporations with gross receipts over $50 million paid only the $456 minimum tax.
  • More recent studies show that even many Fortune 500 companies pay no state income tax other than this minimum.
Several states have targeted their minimum corporate taxes so that businesses with larger volumes of sales pay larger minimum amounts. In New York, for example, the minimum corporate tax tops out at $200,000 for companies with over $1 billion in New York receipts.
Interested in reading the full tax series? Check out our three latest reports on our website here and look for our upcoming reports on corporate taxes in the Commonwealth.
The Massachusetts Budget and Policy Center (MassBudget) produces policy research, analysis, and data-driven recommendations focused on improving the lives of low- and middle-income children and adults, strengthening our state's economy, and enhancing the quality of life in Massachusetts.

MASSACHUSETTS BUDGET AND POLICY CENTER
1 STATE STREET, SUITE 1250
BOSTON, MA 02109


Massachusetts Budget and Policy Center, 1 State Street, Suite 1250, Boston, MA 02109

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Saturday, August 3, 2019

"the burden of trying to get this done for two of our busiest days of the week outweighed any possible benefit"

From the Milford Daily News, articles of interest for Franklin:

"When shoppers hit the malls and Main Streets later this month during the state’s tax-free weekend, their lunch or dinner will continue to be taxed at 6.25 percent or higher after the Legislature Wednesday voted to exclude meals from the sales tax holiday.

The change was made at the request of Gov. Charlie Baker and restaurant owners who were concerned about their ability to implement a two-day tax holiday, and whether the cost of trying would outweigh any benefit.

Bob Luz, the president the Massachusetts Restaurant Association, said restaurants don’t have the capability when applying taxes to a check to separate food from alcohol.

“I think at the end of the day when everybody realized what had happened, the governor quite honestly had one of two options, either include alcohol or don’t,” Luz said."

Continue reading the article online (subscription may be required)
https://www.milforddailynews.com/news/20190802/baker-legislature-rolling-back-tax-holiday-on-meals

Sunday, December 23, 2018

In the News: tax deal on short term rental units; House hires a HR director

From the Milford Daily News, articles of interest for Franklin:

"With the clock ticking on the end of the two-year session, House and Senate leaders finalized a deal Thursday to tax and regulate short-term housing rentals through websites like Airbnb, reviving a bill that passed in July but was imperiled by concerns raised by Gov. Charlie Baker. 
The new version still would apply the 5.7 percent hotel and motel room tax to units rented on a short-term basis. Legislative leaders, however, agreed to a change proposed by Baker that would exempt homeowners who rent out their units for 14 or fewer days a year from having to collect the tax. 
The House and Senate also agreed to postpone an extra Boston Convention and Exhibition Center financing fee on short-term units rented in Boston, Cambridge, Worcester, Springfield, West Springfield and Chicopee for about 10 years, or until the bonds on the BCEC are paid. 
“We’re excited that we were able to accomplish this before the end of the year because there were a lot of twists and turns throughout the process, but we got it done,” said state Rep. Aaron Michlewitz, the co-chair of the Committee on Financial Services."

Continue reading the article online (subscription may be required)
https://www.milforddailynews.com/news/20181222/house-senate-agrees-to-baker-proposals-on-short-term-rental-tax

AirBnB screen grab
AirBnB screen grab


"The Massachusetts House has hired a woman with experience running human relations for Raytheon Co. and Bright Horizons Family Solutions to serve as the House’s human resources director, a new position created as the branch works to update its policies dealing with harassment reporting and prevention. 
The House Committee on Rules announced on Thursday that it has appointed Katherine Palmer, who has most recently worked as a human resources consultant, to serve as the House’s chief of human resources for a two-year term. The committee said Palmer specializes in “employee relations, workforce planning, employment law and establishing governance and compliance practices.” 
In March, the House adopted a package of new rules -- recommended by the House counsel and a team of attorneys hired to study the House’s policies around workplace sexual harassment -- that included a new investigation process for harassment claims and new human resources employees, including a director of human resources."

Continue reading the article online (subscription may be required)
https://www.milforddailynews.com/news/20181222/house-hires-hr-director


Thursday, February 8, 2018

“As this new industry is established: simpler is better”

From the Milford Daily News, articles of interest for Franklin:

"From standardizing community host agreements to allowing porta-potties on outdoor pot farms, speakers at a public hearing Wednesday offered many suggestions on how to tweak regulations governing recreational pot, with particular emphasis on helping small farmers succeed in the nascent industry. 
“There’s no ganja like farm-grown ganja,” said Eric Schwartz, co-founder of Farm Bug Cooperative, a cooperative of farmers which will be applying for a craft marijuana cultivator cooperative license. “I think Massachusetts can be a shining example for the rest of the country in ending the failed marijuana prohibition policy.” 
About 100 people gathered at the Worcester Public Library Wednesday morning for a public hearing on draft regulations governing the adult use of cannabis in the state. The meeting was hosted by members of the Cannabis Control Commission, and was one of several being held throughout the state to solicit feedback on the draft regulations - which oversee everything about the cannabis trade from seed to consumption."

Continue reading the article online (subscription may be required)
http://www.milforddailynews.com/news/20180207/small-farmers-focus-of-pot-hearing

MA Cannabis Control Commission webpage
MA Cannabis Control Commission webpage

Tuesday, January 23, 2018

“There’s a lot of uncertainty now”

From the Milford Daily News, articles of interest for Franklin:
"Town Council will discuss an increase in retail marijuana tax at a meeting on Wednesday. The one percent increase would bring the total tax to three percent. 
The original legislation on the ballot in 2016 indicated that the sales tax on recreational marijuana was allowed at two percent. Recent legislation has amended the law, allowing municipalities to tax up to three percent. The motion in front of the town council will confirm or deny the tax increase. 
The state is due to start accepting applications for retail marijuana facilities on April 1, and since Franklin is one of the municipalities that is already zoned and does not have a moratorium, the town likely see a few. 
State Rep. Jeff Roy, D-Franklin, said that anytime revenue can be sought without adding to property taxes is a positive, and will always help town governments."

Continue reading the article online (subscription may be required)
http://www.milforddailynews.com/news/20180122/franklin-council-to-discuss-marijuana-tax-increase

“There’s a lot of uncertainty now”
“There’s a lot of uncertainty now” 

The agenda and documents released for the Town Council meeting can be found online
http://www.franklinmatters.org/2018/01/franklin-ma-town-council-agenda-jan-24.html

You can also find the full set of documents in one PDF

Thursday, January 11, 2018

MassBudget: How the MBTA is held back by slow growth of its major funding source



MassBudget  Information.
  Participation.
 Massachusetts Budget and Policy Center  Democracy.
How the MBTA is held back by slow growth of its major funding source

Many workers and families in Massachusetts depend on the Massachusetts Bay Transportation Authority and Regional Transit Authorities to get to work, school, grocery stores, and other essential activities. The MBTA provides transit services connecting 175 cities and towns containing almost three-quarters of the Massachusetts population. But the MBTA has a persistent funding problem.

The Massachusetts Budget and Policy Center's new report, "How Slow Sales Tax Growth Causes Funding Problems for the MBTA," explains how the MBTA's largest source of funding has fallen $219.5 million short of original projections.

Legislators established Forward Funding in 2000 to dedicate a "penny" of eligible sales tax to the MBTA, so the system would have an adequate source of growing revenue. At the time, the conservative estimate was for an average growth rate of three percent a year. Instead, average annual growth has been less than 1.5 percent. While the Legislature has provided other funding over the years, the failure of the penny of sales tax funding to meet projections has contributed to structural funding problems at the MBTA.

 
MassBudget: How the MBTA is held back by slow growth of its major funding source
 

 
In addition to sales taxes overall growing slowly, the sales tax "penny" dedicated to the MBTA has grown more slowly than general sales tax revenues because taxes on prepared meals are excluded. Tax revenues from meals have grown more than three times as quickly as total sales tax revenues. They have grown as a share of total sales tax revenue from 12.8 percent in Fiscal Year 2001 to 17.9 percent in Fiscal Year 2017. If sales taxes dedicated to the MBTA had grown at the same rate as sales taxes overall, the MBTA's penny would have been worth an additional $49.9 million in Fiscal Year 2017.

 
Read the full report here.
The Massachusetts Budget and Policy Center (MassBudget) produces policy research, analysis, and data-driven recommendations focused on improving the lives of low- and middle-income children and adults, strengthening our state's economy, and enhancing the quality of life in Massachusetts.

MASSACHUSETTS BUDGET AND POLICY CENTER
15 COURT SQUARE, SUITE 700
BOSTON, MA 02108


Massachusetts Budget and Policy Center, 15 Court Square, Suite 700, Boston, MA 02108

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Monday, August 7, 2017

“It was supposed to be temporary, but it became permanent”

From the Milford Daily News, articles of interest for Franklin:

"After eight years of a 6.25 percent sales tax, some retailers are calling for a change. 
The Retailers Association of Massachusetts is looking to put a lower tax rate on the ballot, placing the rate in the hands of voters in the November 2018 election. 
Bill Rennie, the association’s vice-president, said retailers had been concerned about the government’s failure to pass a sales tax holiday. Beyond that, he said, the state’s store-owners must compete with tax-free New Hampshire and untaxed Internet sales. 
“The Internet is never going away, and we’re not under the impression that it will,” he said. “What smart tax policy can do is make sure we’re operating on a level playing field.”


Continue reading the article online (subscription may be required)
http://www.milforddailynews.com/news/20170806/voters-could-decide-on-lower-tax-rates

https://www.simonfurniture.com/
https://www.simonfurniture.com/

Wednesday, August 2, 2017

In the News: FY 2018 first month revenues; possible sale tax cut for ballot question

Two articles related to the State budget. One on the revenues generated in the first month of the new fiscal year (FY 2018) and the second on a possible ballot question put forward by retailers to reduce the sales tax in MA. From the Milford Daily News, articles of interest for Franklin:


"The Massachusetts Lottery surpassed the $1 billion mark in net profits for the first time in its history, raking in $1.035 billion in fiscal 2017 despite declining sales, officials announced Monday. 
Estimated sales of $5.093 billion for the fiscal year that ended June 30 dropped below the $5.233 billion in sales the previous year, which marked an all-time high, Lottery executive director Michael Sweeney said Monday at a Lottery Commission meeting. 
The Lottery reported a record high of $915 million in Keno sales, attributing it in part to a continued expansion of agents offering the game. Meanwhile, Powerball sales fell by $47.2 million from fiscal 2016 and instant ticket sales dropped 2.7 percent to $3.5 billion."
Continue reading the article online (subscription may be required)
http://www.milforddailynews.com/news/20170801/sales-and-payouts-down-profits-up-at-state-lottery



"Massachusetts voters in November 2018 may have a major tax cut on their ballot to go along with a proposed surtax on high income households. 
Retail industry officials are poised to file initiative petitions that would reduce the 6.25 percent sales tax rate to either 5 percent or 4.5 percent, the News Service has learned. 
“Massachusetts small businesses that employ thousands of workers are significantly disadvantaged when competing with stores in tax-free New Hampshire and big online retailers,” Jon Hurst, president of the Retailers Association of Massachusetts, said in a statement. “Reducing the state sales tax will help small business remain competitive, while also putting money back in the pockets of those who need it most including seniors on fixed incomes and working class families.”

Continue reading the article online (subscription may be required)
http://www.milforddailynews.com/news/20170801/retailers-will-file-sales-tax-cut-ballot-question

For reference


Governor Baker signs the FY 2018 budget
http://www.mass.gov/governor/press-office/press-releases/fy2018/governor-baker-signs-fiscal-year-2018-budget.html

Franklin Town Council 2nd budget hearing for FY 2018 
http://www.franklinmatters.org/2016/05/franklin-ma-town-council-budget-hearing.html

Franklin Town Council approves FY 2018 budget
http://www.franklinmatters.org/2017/05/live-reporting-town-council-budget.html

new turf field surfaces were the result of several years of saving for the eventual replacement to avoid the one time cost
new turf field surfaces were the result of several years of saving
for the eventual replacement to avoid the one time cost