Officials plan new meals tax vote

PLYMOUTH

Anniversary fund would benefit

September 04, 2011|By Christine Legere, Globe Correspondent

Plymouth’s fall Town Meeting will consider adopting a local meals tax that some say could yield nearly $1 million in annual revenue and place the town on a growing list of communities taking the option to bolster dwindling resources.

According to the state Department of Revenue, 146 cities and towns statewide, or about 40 percent, have adopted the local meals tax in the past two years. The 0.75 percent tax, which adds 75 cents to a $100 restaurant bill, is not popular among local entrepreneurs, who grouse that it discourages consumer spending at a time when they most need the business.

The participation rate among communities south of Boston mirrors the state’s, with 19 of 48 signed on to the local option. Kingston voters just approved the tax last spring, and it went into effect in July, apparently with little grumbling. “We haven’t received any complaints at all,’’ said Nancy Howlett, assistant to the town administrator.

In Hingham, adoption of the tax required a standing vote at a 2010 Town Meeting. The tax, which is placed in the town’s stabilization fund, was approved with 548 in favor and 511 opposed.

“When it first passed, we got a few complaints from customers, but then everyone got used to it,’’ said Scarlet Tavern general manager Kenny Robicheau. “Dedham has had the meals tax longer, and when I worked there, the experience was the same.’’

If Plymouth Town Meeting representatives pass the local measure on Oct. 24, all collected revenue would go into a 400th Anniversary Fund. Michael Hanlon, an Advisory and Finance Committee member and author of the surcharge proposal, included a provision that the fund be used for three purposes: the upcoming anniversary celebration, restoration and maintenance of the 1820 Courthouse, and infrastructure improvements to Burial Hill and two historic squares.

The proposal also contains a sunset clause terminating the meals tax in 2021, “unless otherwise extended by a vote of Town Meeting.’’

Hanlon said his participation on a committee dealing with restoration and reuse of the 1820 Courthouse has given him a clearer picture of Plymouth’s tourism challenges.

“Most people visit Plymouth Rock, the Mayflower, and Plimoth Plantation and leave,’’ Hanlon said. “I think it’s important to preserve the courthouse, and putting a first-class visitors’ center in it would bring tourists to downtown.’’

John Robertson, executive legislative director for the Massachusetts Municipal Association, said other communities use the tax to fix up tourist attractions. “The thinking is, money gained from visitors should be used to attract more visitors by enhancing downtowns,’’ he said.