Massachusetts is abuzz with discussion about Gov. Maura Healey’s new tax proposal, which many local leaders believe will help communities across the state. Local officials say the plan could bring much-needed revenue to support important services like safe roads, better schools, and improved housing.
A Proven Model in Provincetown
In Provincetown, a popular tourist destination at the tip of Cape Cod, local officials have already seen the benefits of using a local option tax on lodging. Leslie Sandberg, a Provincetown Select Board member, explained that the town uses the money collected from taxes on hotel and AirBnB stays to fund local housing projects. With the housing market being very expensive—condos start at $1 million and single-family homes can cost $2 million—the extra funds are making a big difference.
“When I heard Gov. Healey was proposing to allow more flexibility for communities to raise money, I was very happy,” said Sandberg. “Having the extra revenue tool means that if we need more funds, we can raise them without raising property taxes.”
This proven success has influenced other local leaders who now support a similar approach at a state level.
Details of the New Proposal
Gov. Healey has included the tax proposal in her $62 billion budget plan for the fiscal year starting July 1. While the idea was previously rejected in this year’s state budget, the governor remains optimistic that the new proposal will pass. If approved and signed into law, the plan will bring several changes:
- Lodging Tax Increase: The maximum local option tax on hotels, motels, and other short-term rentals will rise from 6% to 7% in most communities. In Boston, the tax will go from 6.5% to 7.5%.
- Meals Tax Ceiling Increase: The cap on the local meals tax will increase from 0.75% to 1%.
- New Surcharge on Vehicle Excise: A new local option surcharge of up to 5% will be added to motor vehicle excise bills. This money will be dedicated to local stabilization funds.
Gov. Healey stated, “Every Massachusetts resident deserves to live in a community with high-quality local services, from safe roadways to good schools and jobs. We trust that local officials understand their communities best, and this proposal is designed to give them the power to make the choices that work best for their areas.”
Voices from the Community
Many municipal leaders across the state have spoken out in favor of the new proposal, explaining how it can benefit their local communities.
In Easthampton, Mayor Nicole LaChapelle pointed out that a local meals tax has already helped improve local services. “The additional funds have allowed us to invest in roads, crosswalks, and neglected areas of our city,” she said. LaChapelle added with a smile, “This extra money is a game-changer for our budget, and it makes me do the most mayoral cartwheels these days!”
Similarly, in Quincy, Mayor Thomas P. Koch has been using the revenue from the hotel tax to support projects such as parks, open spaces, and historic preservation. He noted that the current method of raising revenue through property taxes is not the best way to ensure fairness, as property taxes are based on the value of the property rather than the residents’ ability to pay. “A tax on visitors, such as the hotel tax, helps take the pressure off local residents,” said Mayor Koch.
Gardner’s Mayor Michael J. Nicholson also supports the proposal. His community has used money from the local meals tax to fund essential infrastructure improvements. Nicholson explained that the tax is fairer because it is paid by both residents and visitors who enjoy local restaurants. “It is a less aggressive and more balanced way to find revenue for our community,” he said.
Concerns from the Business Community
Not everyone agrees with the new proposal. Christopher Carlozzi, the Massachusetts state director for the National Federation of Independent Business, criticized the plan. In an email, he said, “Like most sequels, the return of the Municipal Empowerment Act is worse than the original. Allowing municipal governments to further increase local option taxes is a step backward in making our state more competitive and affordable.” His comments reflect the worry that higher local taxes might hurt the overall business environment in Massachusetts.
Cautious Optimism on Beacon Hill
Among the state’s political leaders, Senate President Karen E. Spilka of Middlesex/Norfolk has taken a wait-and-see approach. “I am looking forward to reviewing what is included in the governor’s bill,” she told MassLive. “I understand the need to give cities and towns more flexibility to raise funds in a way that best suits their community’s needs. I will look at the proposal with an open mind.”
The Legislative Session Kicks Off With a Flurry of Bills
As the new legislative session begins, lawmakers from across Massachusetts—from the Berkshires to Boston—have introduced a wide range of bills. State Senator Joanne M. Comerford of Hampshire/Franklin/Worcester has filed 65 bills by the January 17 deadline. Her office says the aim of these bills is to make “people-powered progress.”
Some of the bills include:
- SD834: A proposal to encourage the donation of food to those in need.
- SD1014: A bill that would allow the creation of a municipal and public safety building authority.
- SD858: A measure requiring tuition equity at the Stockbridge School of Agriculture.
Senator Comerford and her team have made an effort to ensure that each bill is easy for the public to understand. “Transparency and accountability are very important,” Comerford said. “We publish short summaries of each bill so that our constituents can see exactly what we are proposing and why.”
Other Local Updates and Announcements
In addition to the discussion on taxes and legislative proposals, Massachusetts residents have several other local updates to be aware of:
- Dr. Seuss Specialty License Plates: New license plates featuring the Cat in the Hat are now available across the state. These plates are designed not only as a fun collectible but also to support literacy programs and museums. They cost $40 plus registration fees, and a portion of the fee will help support local museums.
- Property Tax Abatement Deadline: Homeowners who received higher-than-expected tax bills have until Monday to file for an abatement. The deadline, usually falling on February 1, is an important date for residents who need help managing their property taxes. Forms can be obtained from local assessors’ offices or the state Department of Revenue’s website.
- Australian Band Jet Touring: Fans of the Australian band Jet, known for their hit “Are You Gonna Be My Girl?”, can look forward to a concert in Boston on May 31. The band will be performing at the Roadrunner venue in Boston Landing, reminding everyone that the band continues to produce music and perform live.
- A Closer Look at National Politics: In other news, Vice President JD Vance’s recent conflict with the Catholic Church over immigration policies has sparked widespread discussion. Vance, one of the highest-ranking Catholics in the federal government, was involved in a dispute with the U.S. Conference of Catholic Bishops. He criticized the organization for focusing too much on finances rather than helping refugees and immigrants.
Looking Ahead
Gov. Healey’s proposal, along with the other new initiatives and bills being introduced this session, highlights the state’s ongoing efforts to improve local services and boost economic stability. Local leaders believe that giving cities and towns more control over their revenue sources will lead to better quality of life for residents. With debates continuing and opinions split between supporters and critics, the coming months will be crucial in shaping the future of local governance and public policy in Massachusetts.
As communities weigh the benefits of more local revenue against the concerns of higher taxes, the state government and local officials are committed to ensuring that every decision made will support the well-being and progress of their communities. Residents can expect more discussions and updates as this important legislative process moves forward.
Disclaimer: This article has been meticulously fact-checked by our team to ensure accuracy and uphold transparency. We strive to deliver trustworthy and dependable content to our readers.