NEWBURYPORT — Visitors to the city's hotels and restaurants could soon be spending more money on their bills, if two measures before the City Council were to pass.
Ward 4 Councilor Ed Cameron has proposed two measures for Monday's meeting that would allow Newburyport to implement an optional meals tax that would have the tax climb from its current 6.25 percent to 7 percent, and to increase the city's local room occupancy excise from 4 percent to 6 percent.
In August, the state's sales and meals tax rates increased from 5 percent to 6.25 percent. At the time, Gov. Deval Patrick also authorized a "local option" stipulation that allows cities and towns to raise the meals tax an additional 0.75 percent to raise additional revenue for the community.
"Together, the adoption of the local meals tax and the amending of the local hotel tax would be a step to diversifying the city's revenue stream," Cameron wrote in an e-mail.¬ "Much of the cost of the proposed meals tax will be paid by non-residents and virtually the entire hotel tax will be paid by non-residents.¬ Because these excise taxes are small in nature — a $100 restaurant bill will be increased by 75 cents and a $200 B&B overnight will be increased $4 — these incremental changes are not likely to have an impact on attracting tourists and diners to Newburyport."
Several downtown restaurants were called for comment but did not respond by presstime.
Cameron cited state Department of Revenue figures that show estimated annualized revenue under the meals tax would be $282,658 and estimated hotel tax revenue with a 2 percent increase could be about $30,000.
"Many cities and states have higher meals and hotel tax rates," Cameron wrote.¬ "For example, the state of New Hampshire recently increased its meals tax to 9 percent with no local option.¬ The state of Rhode Island has a meals tax of 7 percent with a local option of one percent.¬ Vermont is 9 percent and Maine will be increasing to 8.5 percent. The impact on residents will be real but this additional recurring revenue will help achieve city priorities."
Cameron said he would advocate that the additional revenue be directed to items outside the city's general fund, such as using it for downtown improvements, street and sidewalk repairs or specific education priorities.
While Mayor John Moak has said in the past that the jump to seven percent for the city is too high, he has also noted he would advocate for using the extra dollars for any meals tax option to promote the city or maintain the downtown.
Ann Ormond, the president of the Greater Newburyport Chamber of Commerce echoed that thought yesterday, pointing to the model used in Salem, where a certain percentage of the money is used to promote Salem.
"Right now, there is no money to promote Newburyport," she said. "I definitely think it's something that needs to be looked at. We're a tourist destination."
If the additional revenue is used to promote the city as a destination and to go back into the downtown, Ormond said, she would expect some of those businesses most affected, would be understanding.
"I think most of the members who would be affected, would understand if they felt there was money on the return to help the city," she said.
The two bills are among three that Cameron is bringing before the council Monday. The third measure would exempt the positions of police marshal and fire chief from provisions of civil service law of Chapter 31 of the Massachusetts General Laws.
NJ Man Charged With Murder in Death of Patz
Support, Fun for Kids of Fallen Soldiers at Camp
Fugitive Penguin Caught, Returned to Aquarium
50 Years Later, Underground Fire Still Burning
Light Show Transforms Sydney Opera House
Raw Video: Unruly Passenger Restrained in Miami
Raw Video: Robber Uses Drive-thru Window
Raw Video: Dragon Arrives at Space Station
Calif.'s Coronado Named Nation's Best Beach
CEO Salaries Become Sore Issue in Labor Disputes
Raw Video: Fight Erupts in Ukrainian Parliament
Texan Ranchers Remain Wary of Drought
Raw Video: Soldiers Plant Flags at Arlington
Police: Man Arrested in Etan Patz Disappearance
NYC Protests: the Revolution Will Be Scripted
Chicago U.S. Attorney Fitzgerald Resigns
Neighbors of Etan Patz's Suspect: It's Shocking
Gulf Fishermen Reel From Seafood Troubles
Stuntman Makes Skydive Without Parachute in UK
Raw Video: Bride Who Faked Cancer Released
