SB 102 would redirect the extra 1 percent meals tax collected at restaurants, grocery stores, and catered events away from the state’s general fund and send it directly to the town where the purchase was made. While helping municipalities is an important goal, this change would shift how statewide tax dollars are distributed.

Sales taxes are designed to support services that benefit everyone, such as education, transportation, and public safety. Sending meals tax revenue back only to towns with higher restaurant and grocery sales could create uneven funding across the state. Larger or busier communities would receive more money, while smaller towns could receive far less, even though residents rely on the same statewide programs.

Without offsetting changes, this shift could also create budget gaps at the state level, leading to pressure for higher taxes or spending cuts elsewhere. Supporting towns should happen through the regular budget process, not by carving out pieces of statewide taxes.