The governor has filed new legislation that allows new tax increases. As state spending has ballooned to unprecedented levels, Beacon Hill has prioritized increased, wasteful spending and new bureaucratic jobs. Instead of rebalancing priorities and putting spending in check, Governor Healey is taking the easy way out by allowing municipalities to be the boogeyman and raise taxes at the local level in order to fund town and city needs that taxpayers have already been paying for through state taxes.

Her 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.

This bill has been filed by Governor Healey and is now in the hands of the legislature. We urge you to contact your legislative leaders and the governor to tell them they need to responsibly cut inflated spending at the state level to free up money for cities and towns and not turn to tax increases.