Thursday, 4:30 PM
Patrick aims to increase taxing power of cities and towns
By Globe Staff
The Patrick administration announced a plan today that would give cities and towns the right to impose taxes on meals, hotels, motels, and telecommunications companies, and create a commission to study other ways to help local governments raise revenues.
Governor Deval Patrick and Lieutenant Governor Timothy P. Murray outlined the initiative today at Watertown Town Hall as they described legislation that they said would help lower property taxes and allow cities and towns to participate in the state's health insurance program.
"This administration is fully committed to an active, working partnership with every city and town in this Commonwealth," said Patrick in a statement. "When they are strong, the Commonwealth is strong."
The legislation would allow local governments to tack on an additional 2 percent on top of the state's existing 5 percent meals tax and also impose local taxes on hotel and motels. Twenty-five percent of this revenue would be used to lower property taxes of senior citizens, according to the administration.
Boston Mayor Thomas M. Menino said in January that the proposal to repeal the property tax exemptions of telecommunications companies would allow the city to deliver an average of $200 in property tax relief to homeowners each year.
Patrick also took aim at cities and towns' underperforming pension funds, which would be subject to take over by the state retirement board.
