News

Mayor: Meals tax hike not worth fight

By Katie Farrell
Staff writer
Published: July 2, 2009

NEWBURYPORT — Mayor John Moak said yesterday he will not look to impose an optional added meals tax in Newburyport, saying the 7 percent tax that would be required was beyond what he felt was reasonable.

"I'm not sure it's worth the fight to go up that high," the mayor said.

Under the new fiscal year's budget, signed by Gov. Deval Patrick earlier this week, the sales and meals tax rates will increase from 5 percent to 6.25 percent as of Aug. 1. 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.

For years, Moak has been a big proponent of having a local meals tax option, but he said yesterday his "threshold" of how far he would go was 61âÑ2 percent, which is not an option.

"I never wanted to go up to that full 7 percent," he said.

Moak had said he would use the extra dollars to promote the city or maintain the downtown. Under the option in this budget, Moak said, the city would only see revenue of about $240,000. Initial estimates had once put that total around $500,000 under previous meals tax options.

Moak said the city should instead look at other revenue options, such as a pay-as-you-throw option for trash removal.

Greater Newburyport Chamber of Commerce president Ann Ormond called the mayor's decision not to impose the extra amount "great news."

"Any little bit helps," she said.

Ormond said she has heard no reaction yet from businesses and restaurants in the city on the sales and meals tax increase, but said she understands the state is in a "quandary."

"Our state rep and senator are doing the best they can as they work with a not so great deck of cards," she said.