Local Meals Tax Proposed for Foxborough

Foxborough Town Meeting voters in May will decide as to whether adopt a .75 percent local meals tax that will bring the town additional revenue.

Town Manager, Kevin Pacios, reviewed the local meals tax option in a presentation at last evening's selectmen meeting, March 29.

Paicos believed it was important to spend time "clearing up" the rumors and distortion surrounding the meals tax.

This proposed option of revenue would allow for a tax of .75 cents on sales of restaurant meals. This would include stadium food sales as well.

The state Legislature created the local meals tax option for cities and towns in 2009.

All revenue taken in town under the local tax would be collected from the State before being redistributed back to Foxborough.

Estimated revenue from the tax for FY' 12 would amount to $601,921.

Paicos broke down impact of the tax, demonstrating what it would actually cost.

• $20 meal = $0.15 (15% tip =$3.00)
• $50 meal = $0.37 (15% tip=$7.50)
• $100 meal = $0.75 (15% tip = $15.00)

Paicos aimed at answering the most pressing issue that voters have with the tax;  "Adoption of the meals tax would create a burden for business?"

Paicos chose to answer that question by looking at towns that have already adopted the tax.

The meals tax has already been implemented in over 100 municipalities across the state including Dedham.

Restaurant owner, Joe Gaffey of the Village Manor in Dedham, has seen very little negative comments regarding the meals tax.

"Nobody is happy about a tax increase, but I haven't heard too many complaints," said Gaffey. "People understand cities and towns are in desperate shape."

Paicos said that Foxborough residents are already paying the extra .75 percent when they dine at Easton, Stoughton, Plainville, Norton restaurants - all communities that have adopted the local meals tax.

Paicos said, however, that if there was one "important point to make and remember concerning the meals tax, is that it's not really a tax on Foxborough residents."

The reality of the tax for Foxborough is that it's a "transfer tax" on visitors to town and not Foxborough residents.

"Consider for a moment where you work and eat out now," said Paicos. "You probably already pay it."

The average revenue that the meals tax brings into surrounding towns amounts to approximately $252,280 a year. The projected revenue number for Foxborough is $751,597.

Foxborough is able to more than double the revenue from the meals tax compared to other communities because of Patriot Place and Gillette Stadium.

Paicos called passing the meals tax a "no brainer."

"We have to remember that people choose to eat out. You can avoid the tax" said Paicos. "However, we are also set to lose $750,000  a year if we do not adopt the tax." 

In closing, Paicos said, "Do we really want to turn-away a legitimate source of revenue paid primarily by outsiders who wear our roads, task our police and require service?"

Selectmen, James DeVellis, made the point that "what was not presented, was the benefits of not adopting the meals tax."

The Board of Selectmen decided in a 3-2 consensus to recommend that the meals tax revenue not be included in the draft budget.

They agreed to let the meals tax "stand on it's own" and if approved, recommend the funds for various road repairs and funding of post retirement healthcare costs.

Do you agree that the meals tax should be adopted in Foxborough? Tell us in the comment section.