Ad Hoc Committee discusses proposed meals tax
The ad hoc budget committee, charged with reviewing the town and school budgets and reaching a consensus before April Town Meeting, discussed the impact an increase in the meals tax would have on Wareham during its third meeting, held Friday morning.
The proposed meal tax would tack on a .75 percent sales tax increase on restaurant meals, equating to $.75 cents on a $100.00 tab. The tax has the potential to drum up $400,000 in extra revenue that will go toward capital planning in Wareham, according to Town Administrator Mark Andrews.
"The reality is we need it," School Committee member Geoff Swett said. "It is recurring revenue that [Andrews] can count on in the budget."
The tax has the support of all the group members with the exception of Selectman Cara Winslow, who pointed out an added tax could have a negative effect on Wareham.
"One of the greatest ways to promote growth is through commerce," she told the committee. "Psychologically, if people think they're being excessively taxed they will be less likely to make that purchase."
During Tuesday's Selectmen meeting, Selectman Brenda Eckstrom, who was not present on Friday's meeting, also voiced opposition because of the negative impact a tax could have on restaurants.
Both concerns were dismissed by the committee.
"We have signature restaurants," Andrews explained. "The tax will [mostly] bring in revenue from people who come to shop at Wareham Crossing and then eat."
This issue failed to pass in Town Meeting last year, but the members of the Ad Hoc Committee said they believe the tax can get another chance if it is supported by the Board of Selectmen, the School Committee, and the Finance Committee simultaneously.
This time around, the money generated by the tax would be cited specifically for capital planning which, the committee feels will garner more public support than if the money were just deposited in the general fund.
The state gives each town the choice of opting in to the increased tax. Currently, 114 towns in Massachusetts have the increased tax in place. At least 10 of those are seaside communities.
At its next meeting, the committee will discuss "free cash," or unrestricted funds left over from previous years' budgets. That issue was briefly addressed during Friday's meeting, but will discussed in further detail next week.
The committee meets again Tuesday, February 15 at 5:30 p.m. in the Selectmen's Meeting Room, located in the Multi-Service Center on Marion Road. A meeting is also scheduled for Tuesday, March 1 at 5:30 p.m. in the Multi-Service Center.