Panel hears testimony about city tax proposals
Diners who come to Bella Luna in Jamaica Plain won’t be deterred by a three-quarters of a percent tax increase, Kathie Mainzer, co-owner of the restaurant, said at a hearing yesterday on proposed increases in meal and hotel taxes at City Hall.
“When you think about buying a $10 pizza, an extra 7.5 cents is not going to make you change your mind,’’ Mainzer told the City Council’s Government Operations Committee.
Councilor Charles C. Yancey said the proposed increases, which would raise hotel taxes by 2 percent and meal taxes by 0.75 percent, will be a way the city can collect money from people who travel into Boston.
“The population of Boston doubles every day, with over 500,000 commuters who use the city,’’ Yancey said. “These 500,000 visitors benefit from the programs that Boston residents pay for - our police, our fire department - but they do not pay for themselves.’’
The increases would help to diversify the city’s budget, 78 percent of which comes from property taxes and local aid, said Lisa C. Signori, director of the city’s Office of Administration and Finance.
But they probably will not do enough to meet budget gaps the caused by of declining revenues from those two sources, she said.
Councilor at Large Sam Yoon, who is running for mayor, said he supported the tax increases as a way to generate revenue without costing residents much.
“I think people go to a restaurant so they can get the food,’’ Yoon said. “They’re not worrying about the extra few cents.’’
Opponents said they fear that small businesses will be the hardest hit.
“At a time when small businesses are on the ropes, struggling to keep their doors open, to pay their own employees . . . I cannot support this proposal,’’ said Councilor at Large Michael F. Flaherty, who is also running for mayor.
