Facts About the Meals Tax

On January 14, Plymouth residents will have a chance to vote on whether to keep or repeal the meals tax implemented by Town Meeting this past fall.

What is the meals tax?

It's a 0.75% tax on meals. Less than a penny per dollar. In fact, it's $0.04 on a meal at McDonald's, $0.19 on a $25 meal at a restaurant, or $0.37 on a $50 dinner for two at a nice restaurant.

Will it hurt restaurants?

No. It's a pass-thru tax. The diners pay it, not the restaurants. Contrary to earlier reports by the Plymouth Chamber of Commerce, it does not cut into restaurant margins or menu prices. The tax is added to the meal at the end, when you receive the check.

But won't diners go eat at another town?

Kingston already implemented the tax. To drive to another town to avoid the tax would cost much more in fuel than the tax will cost. No one will drive to another town to avoid the tax.

What will the tax be used for?

In 2020, Plymouth will be commemorating the 400th Anniversary of the landing of the Pilgrims. To prepare for the events, which will draw world-wide attention, last over a year, and attract visitors such as British royalty, Japanese leaders, high-level American political figures, celebrities, and millions of tourists, Plymouth need to improve its infrastructure over the next 8 years. Though we hope to have state and federal monies available, as well as sponsorships and fundraisers, it's suggested that the town of Plymouth needs to provide some of the funding as well. This meals tax will specifically fund the restoration of Burial Hill, which will help tie the waterfront to the downtown area, Town Square, and the 2020 events. It will not be used for anything else.

But didn't the residents of Plymouth already vote against this tax 2 years ago?

Yes and no.  

The state implemented this tax 2 years ago as an option for towns throughout the state as a vehicle to raise additional funds. Town Meeting voted to implement the tax, and a small group banded together to gather signatures and to repeal the tax. The meals tax was voted down by a significant margin by Plymouth voters on a referendum question.

At that time, the meals tax had no goal. It was simply a tax that would be added to the town's general fund to be used to cover the budget and general expenses.

This time, the tax has some significant differences.

For starters, the tax will be used specifically to restore Burial Hill and Town Square, and fund the 2020 commemoration events.

Additionally, this tax has a sunset clause. Since the revenues being raised are for the 2020 events and infrastructure improvements leading up to 2020, this tax will dissolve in 2021.

But aren't we taxed enough already?

Listen, I am about as far from a wealthy man as you can get. I work two jobs. I work full time during the day, and moonlight on evenings and weekends. My wife is a teacher, and works a second job during the summer. We struggle to pay our bills. I have a son in his first year of college, and another son in diapers, so I not only pay tuition, but I also pay for day care. We bought our house at the height of the housing bubble, so we have a pretty significant mortgage to contend with.  I was laid off from my day job during the recession, and the restaurant I bartended at for 8 years closed this past fall. Luckily, I was able to replace both jobs, but I know what it feels like to struggle, and I know first hand how brutal the economy has been these past few years.

But, like you, I chose to live in Plymouth. I was born here. I was raised here. And now I raise my family here.

If I chose to live in a surrounding town, my property taxes would be less and my house would have been $100,000 cheaper.

But I live here because I love this town. I love the history. I love the beauty. I love all it has to offer, from the forests, to the ponds, to the coastline, the beaches, the waterfront, the downtown, the golf courses, the country roads, the restaurants, the shops, and everything else we have to offer. The charm, the story.

And you do, too, or else you'd be living somewhere else.

So when 2020 comes, I want to stand proud as the world takes a close look, and I want to show how well we have done as stewards, and after 400 years, this is what we have to show the world.

If it means paying a few cents when I go out to eat, great. At least I did my part.

And you want to know the real beauty of this tax?

Only those who can afford to go out to eat will pay it. And since these events will be catering to tourists, tourists will be paying the bulk of this meals tax.

Sounds good to me!

So, please, on January 14 vote YES for the meals tax, and vote to do your part to show the world what our proud little town has to offer!