Foxborough Town Meeting Approves Meals Tax

Foxborough residents and visitors will be paying an extra 75 cents when they spend $100 at restaurants in town with the approval of a local tax at Town Meeting Monday night, May 9.

After more than two hours of energetic debate, voters approved the local option meals tax in a vote of 318 in favor to 221 against.

The local meals tax, article 4 on the town warrant, will impose a local sales tax on the sales of restaurant meals and alcohol originating within Foxborough at the rate of .75% of gross receipts.

The revenue generated by this tax in the first fiscal year of its passage is estimated to bring in $600,000 to the town of Foxborough. In subsequent full years, the revenue is estimated to bring in $750,000.

Town Manager, Kevin Paicos, addressed town meeting before the vote with a powerpoint presentation in favor of the meals tax.

Paicos noted that $300,000 of the revenue generated from the meals tax will be applied to the 'Other Post Employment Benefits' trust fund (OPEB) with a consideration to utilize the remainder of the funds for non-operating expenses such as road repairs.

Paicos changed his tune from previous statements made over the last 3 months when stating the meals tax would not harm restaurants.

"Let me be clear tonight, this tax will create a burden for restaurants," said Paicos. "That is the truth."

Further, Paicos said that if the town fails to fund OPEB (non-pension benefits that includes healthcare costs) then "it is placing a burden on the future of Foxborough's legacy."

"Future generations will have less services to enjoy than the town currently has if we fail to fund OPEB," said Paicos.

Foxborough's Board of Selectmen held a meeting tonight, May 9, before town meeting to discuss their current stance on the meals tax. The Board, who previously voted to approve passage of the meals tax, changed their vote to not recommend passage of the meals tax by a vote of three against and two in favor. 

In an uncommon move, Selectmen James DeVellis addressed town meeting to speak on the board's reasoning behind their new recommendation.

"It is not prudent at this time to pass the meals tax," said DeVellis. "We do not recommend the meals tax."

Diana Griffin, a Sales Manager CBS Scene Restaurant and Bar, spoke out strong against the article saying that it will hurt business and her ability to generate revenue. 

"Passing this will not only affect business, but it will affect my bottom line," she said.

Foxborough resident, Collin Earnst, spoke out in favor of the increase saying that passing the tax is "about being realistic."

"I can guarantee you next spring we will be here talking about an override that will be a burden solely on Foxborough residents," he said. "It's not about should we tax, it's about choosing the right tax."

Bill Martin, owner of Tasting's Wine Bar and Bistro at Patriot Place, strongly opposed passage of the meals tax.

"Does Foxborough want to be friendly to business or not?"questioned Martin.

Several Foxborough residents spoke out in opposition of the meals tax for philosophical reasons.

"We can't tax ourselves out of our financial problems," said Deb Peterson. "It's the principle - no new tax."

Courtney Jansson can be reached at Courtney.Jansson@patch.com.