Menino To Push Hotel, Meals Taxes To Business Leaders

Boston Mayor Thomas Menino is meeting with restaurant and hotel industry leaders Wednesday to make his case for an increase in the local meals and hotel taxes.

The mayor is proposing the increase on top of the 25 percent state sales tax hike slated to go into effect August 1. If approved, hotel taxes would go from 12 to 14.45 percent and meals taxes would go up .75 percent, making the total tax on meals 7 percent.

The mayor's spokeswoman Dot Joyce said after $90 million in state aid was cut from last year's city budget, officials need to find new sources of revenue. She also said the move would help the city diversify its revenue sources instead of relying heavily on property taxes.

Many restaurant and hotel owners said the tax would hit them hard at a time when they are already struggling during the recession.

The mayor is set ask the city council to approve the new local taxes next week.