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Curious About Town Meals Tax

I was recently at the mall and got my daughters a Smoothie.  While waiting I was reading the menu.  It stated the Mass. state meals tax and also a meals tax from the town.  Can individual towns put additional taxes on products?  - Michelle, Tewksbury

You bet they can as long as that product is subject to the meals tax in the first place.  And more and more cities and towns are doing  just that.

It's called a "local option tax."  Cities and towns can add .75% to the current 6.25% meals tax for a grand total of 7%.   The city or town gets to keep the extra .75% which can add up.  The state legislature passed a law allowing this about 2 years ago and so far 124 communities...about a third of the state's cities and towns...have adopted it. 

You can see which communities have it here.

In my town there was a very heated town meeting debate about whether to adopt  the increased tax.  It eventually passed, but some people felt that it would hurt local restaurants and just add to the tax burden.  Others felt like it's such a small increase that it wouldn't be felt and that since so many communities are adopting it, we would be foolish not to.

What do you think about adding to the meals tax?  Do you even notice it?

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