Meals Tax Could be Coming Soon to Braintree

Braintree restaurants and patrons are likely to see the implementation of the local options meals tax this year, as a proposal by Councilor John Mullaney has gained traction through Mayor Joseph Sullivan's advocacy before business groups and his inclusion of it in his 2014 budget.

"This modest increase – an additional 15 cents on a $20 meal – will allow for continued investment in our community," Sullivan said in his budget speech last Wednesday. "I am committed to putting the realized revenue towards the principal and interest of an expanded capital plan."

The proposal would bring the tax at Braintree restaurants from 6.25 percent to 7 percent, with Braintree retaining the extra revenue on a quarterly basis. The state Department of Revenue has estimated the tax could bring in upwards of $900,000 annually to Braintree, though Sullivan put in $700,000 as the first year revenue number in his proposed budget.

Members of the Committee on Ways & Means will take up the measure May 15, likely followed by a vote of the full Town Council May 21. If the option is adopted at least 30 days before the end of the current calendar quarter on June 30, then it will take affect during the next quarter.

Committee Chair Paul "Dan" Clifford, a proponent several years ago of local hotel and telecommunications taxes that he said did not affect Braintree residents directly, said he remains philosophically against the meals tax because of its local impact.

"It's very hard for me to say let's pile on and have a local tax" on top of existing federal and state taxes, Clifford said. Still, the councilor said he is waiting on the specifics of Sullivan's capital plan to make up his mind.

"There's principle and there's practicality," Clifford said. "I could be swinged."

Sullivan said he decided to support the tax as a way to gird the town against diminishing and unstable federal and state revenue sources. Over the last several weeks, he and other town officials have reached out to the business community to explain the benefits of the tax and outline the capital plan.

Michael Wilcox, Business Development Officer at South Shore Bank and Chair of the new Braintree Chamber of Commerce, said the communication from local officials and the mayor's decision to target the funds for infrastructure improvements has made it somewhat more palatable, but that the chamber still disagrees with the proposal.

"While we still oppose the meals tax, we applaud the Mayor & The Council for taking such opposition into account in arriving at their decision to earmark the meals tax proceeds for capital improvements which will result in Braintree becoming a more livable and attractive community both for its residents and its businesses," Wilcox said in a statement.

Despite the shift from the mayor and lessening business opposition, the measure remains controversial, as some, like Clifford, have questioned the wisdom of adding a new tax while the economy continues to sputter in its recovery.

"I'm still concerned about taking $1 million out of the local economy," Councilor Sean Powers said. "That's my main concern right now.

Council President Charles Kokoros said he worries about the administrative challenges business owners will face in implementing the tax, but that the capital plan will improve quality of life and the very roads that customers use to get to Braintree's restaurants.

"It's a nominal amount of money," Kokoros said. "The average person will be paying 75 cents on a $100."

Since Gov. Deval Patrick offered the local meals tax option in 2009 as part of an increase to the state's portion of the tax, and as one alternative in a "toolbox" of revenue options, the tax has been a cornerstone of Mullaney's platform. The current proposal is Mullaney's third before the council.

"I will feel fully satisfied when the full council votes its approval," Mullaney said. "The only winner in this is the residents of the Town of Braintree."