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Boston's Morning Newsletter
Healey wants to let Mass. communities raise taxes on meals, lodging and cars
Editor's Note: This is an excerpt from WBUR's daily morning newsletter, WBUR Today. If you like what you read and want it in your inbox, sign up here.
The frigid weather is thawing and the Republican presidential primary race is narrowing. If you too have been preoccupied with a big puzzle, let’s catch up on the news:
Gov. Maura Healey wants to give cities and towns in Massachusetts a new way to keep up with rising costs. State law generally prevents municipalities from raising or creating new taxes, meaning most get the bulk of their money from property taxes, which are also capped. So today, Healey plans to file a bill that would let cities and towns raise local taxes specifically on meals, lodging and cars. The Massachusetts Municipal Association, which advocates for local governments, calls the bill “welcome news,” noting that “municipalities have been facing cost increases in key areas that are far outpacing the growth in their revenues.” However, WBUR’s Fausto Menard reports the reaction from others has been somewhat mixed.
- The details: There are three main planks. First, Healey’s bill would let cities and towns increase their local meals tax to a max of 1% of the meal’s price, up from 0.75%. Second, it would allow them to raise the lodging tax on hotel, motel and other rentals from the current 6% ceiling to 7% of the price of a room (and from 6.5% to 7.5% in Boston). Lastly, it would let municipalities add a 5% surcharge on top of the existing motor vehicle excise tax.
- The argument for: Massachusetts Taxpayers Foundation President Doug Howgate supports taking some of the local tax burden away from homeowners (i.e. property taxes): “The idea of enabling municipalities to diversify some of their revenue sources — to areas like consumption that occurs in their town or people who are staying in hotels and lodging — makes sense.”
- The argument against: The restaurant industry says consumers are already paying extra. “The local option meals tax is one of the few taxes that’s already subject to inflation, because menu prices go up every year, so the meals tax always goes up,” said Massachusetts Restaurant Association President Stephen Clark.
- What’s next? Healey’s proposal still needs to go through the State House, whose leaders just pledged they would not raise taxes. According to the State House News Service, neither House Speaker Ron Mariano nor Senate President Karen Spilka had much to say about Healey’s local tax plan after it was revealed.
School’s out: Classes are canceled again today for all Newton public schools, as the city’s teacher strike continues into its second weekday. The teacher’s union and city officials failed to reach a new contract agreement during negotiations this weekend, and the Newton Teachers Association rejected Mayor Ruthanne Fuller’s calls for educators to return to work while talks continue. “A settled contract is the only way to end the strike,” the union said.
Towing troubles: Expect to pay more money to get your car back if it’s been towed in Massachusetts. The state’s Department of Public Utilities is now allowing companies to charge up to $132 for “involuntary” tows, when your car gets towed after parking illegally or breaking down. That’s up from the previous maximum of $108.
- Why? According to The Boston Globe, the towing industry says the increase is necessary due to rising labor and equipment costs. And the DPU approved the change on an emergency basis to “ensure there are enough services for police-ordered towing” during this winter. However, consumer protection advocates want towing companies to change some of their practices — like not allowing drivers to get stuff out of their cars if they can’t pay — in exchange for the hike. A public hearing is scheduled tomorrow afternoon.
Heads up, night owls: MassDOT says it will be shutting down stretches of Route 3 between Burlington and Tyngsborough this week between the hours of midnight and 4 a.m so crews can install some full-width (and presumably unfunny) highway signs. So, expect delays if you’re on the road during those wee hours.
- Reminder: If you take the T, diversions on the Green Line remain in effect this week, including downtown closures and night work on the GLX. Click here for the details.
P.S.— Earlier this month, we asked what tips you might have for those looking to start, join or spice up a book club — and our readers really delivered. Check out the full list of suggestions — and a guide to finding clubs in Boston — here.
