Taxing Eating Out or Not Taxing Eating out - That is the Question

The Town of Foxborough’s budget has reached its breaking point according to Town Manager Kevin Paicos and Foxborough residents will have their say at the May 9 Town Meeting on whether or not to take some pressure off the dire financial situation by enacting a .75% that will be collected by the town. 

While at first blush the tax itself might seem minuscule, Paicos has projected the tax will raise [approximately] over $700,000 in revenue and help the town to slowly absorb the pain of inevitable "tough" budget cuts.

“Either we raise money or we reduce positions,” said Paicos, “It’s simply mathematical, and the reality is we don’t have another place to come up with the money.”

Paicos has been seeking the support of the town residents. The key points that Paicos is stressing is that the proposed tax is very small and that the tax is, to some degree, avoidable by choosing not to dine out.

Paicos also pointed out that the tax will be largely paid by non-Foxborough residents who choose to dine out in Foxborough and that the tiny meals tax is a far better alternative to a tax override.

The meals tax passing, however, is not a "slam dunk" by any means. Opposition to the tax is growing. Newly elected selectmen, Mark Sullivan, has been vocal about his opposition to the tax saying simply, "no, no new taxes."

Local Foxborough restaurant owners have also voiced their opinions on the meals tax during recent selectmen meetings. While the tax has been labeled "tiny" - to restaurant owners, who have seen a sharp increase in the use of credit cards, say that any tax -small or large - will be felt.

"What many do not realize is that every-time a credit card is used in a restaurant, the restaurant is charged a fee and over 90% of patrons pay with plastic now," said Ron Young, owner of the Lafayette House restaurant on Route 1.

Foxbourough has become a top choice for diners with the cluster of Patriot Place eateries and with town revenue declining there are few alternatives to cutting services if new revenue cannot be found.