Meals Tax Passes Town Meeting

If you dine out in one of Swampscott's restaurants starting in mid-summer, you will pay an extra .75 percent on your bill.

Despite objections from restaurant owners and some Town Meeting members that it was a bad time to be levying any new taxes on businesses, the Town Meeting Monday night overwhelmingly passed the, which equals that already in place in most nearby towns, although not in Lynn or Marblehead.

The additional three quarters on a $100 meal will be paid by consumers. Restaurateurs will pass the additional tax along to the town.

When asked why it was not a full 1 percent tax, Town Moderator Joseph Markarian said the state legislature only allows the three-quarters of one percent.

Finance Committee Chairman Michael McClung, who moved for the adoption of the new tax, said the town “is always looking for ways to add revenue.” He estimated that the new tax would bring in between $150,000 and $180,000.

And since surrounding towns, like Danvers, Saugus, Beverly and Peabody, already have the same meals tax, it makes sense for Swampscott to impose it as well, McClung said.

When Swampscott residents dine in restaurants in those towns, “you are helping fund their budgets,” McClung said. He said he thought it appropriate that when residents of those town come to Swampscott to eat that they support the town's budget.

Selectman Richard Malagrifa, who opposed the new tax because “it is not a good time,” recited all of the fees and taxes now imposed by the town. “Living in Swampscott is priceless,” he joked.

“The restaurant owners don't want it. The customers don't want it,” Malagrifa said.

William DiMento said Swampscott restaurants are already paying a “severe, severe tax burden.”

Joe Domelowicz disagreed. He said there is no evidence that this tax hurts restaurants. “I don't know why we are even talking about it.”

Town Administrator Andrew Maylor said, “There is no direct connection between an additional 75 cents and hurting a restaurant's business."

McClung said he does not make his decision of whether to spend $100 on dinner at the Red Rock Bistro on whether he has the additional 75 cents.

The new tax will go into effect in July. The town will see only about two months of additional revenue from the tax this year, McClung said.