Post Content

As of today, 146 communities (about 42 percent of the Commonwealth's 351 cities and towns) have collected $70.5 million over the past two fiscal years from the .75 percent local option meals tax.

The Division of Local Services Municipal Data Bank has the complete list of communities that have adopted the local option tax, and the amount of revenue generated in FY 10 ($27.13 million) and FY11 ($43.33 million). This list appears on the Data Bank Local Options page; just scroll down about halfway until the bullet headed Local Option Meals Excise.

Not surprisingly, Boston has collected the most, about $30 million. The tax has delivered about $5.1 million to Cambridge, $3.2 million to Worcester and $2.3 million to Springfield. But other communities have seen the benefit as well. Natick and Framingham, which share the busy Route 9 corridor, have collected $2.7 million and Northampton, a Pioneer Valley hub of dining and entertainment, has collected $939,000. Blandford, a small town of 1,233 near the New York border, collected $52,000, mostly, one would assume, from the two MassPike service areas in the town.

The state meals tax is 6.25 percent; with the local option, the meals tax rises to 7 percent. Thus a $40 restaurant tab generates $2.80 in meals tax, of which 30-cents goes to a city or town that has enacted the local option. These small amounts add up to a sizable revenue source.

The state share of the meals tax as of May 31 had generated $740 million, up $55 million or 8.1 percent from the same period a year ago, which indicates that the increasing number of communities that have adopted the local option meals tax has not slowed down the pace of taxpayers going out to eat.

 

Written By:

Recent Posts

Commute to work on the T, Commuter Rail or Turnpike? You may be eligible for a Massachusetts Commuter Deduction on your tax return! posted on Jul 16

Commute to work on the T, Commuter Rail or Turnpike?  You may be eligible for a Massachusetts Commuter Deduction on your tax return!

The Commuter Deduction was enacted by the Legislature to cover specific commuter expenses. To help understand the deduction,  the Department of Revenue’s DOR University has released an e-learning module explaining what qualifies for a deduction, real-life examples and how you can claim your commuter deduction   …Continue Reading Commute to work on the T, Commuter Rail or Turnpike? You may be eligible for a Massachusetts Commuter Deduction on your tax return!

DOR Offers FREE E-Learning Course on Fraternal Organization Tax Responsibilities posted on Jul 9

Help get the word out! The Department of Revenue’s online DOR University has recently developed a new free e-learning course on the tax responsibilities of fraternal organizations. Fraternal organizations are considered a type of Chapter 180 Corporation, which are formed for charitable or other purposes.   …Continue Reading DOR Offers FREE E-Learning Course on Fraternal Organization Tax Responsibilities

New Boat Owners: Don’t Get Landlocked This July 4th Weekend! posted on Jun 25

New Boat Owners: Don’t Get Landlocked This July 4th Weekend!

This is traditionally one of the busiest periods of the summer at DOR offices as new boat owners come in to pay sales taxes on their boats or other recreational vehicles, so   they can enjoy the holiday weekend on the water. So, want to   …Continue Reading New Boat Owners: Don’t Get Landlocked This July 4th Weekend!