Cohen pushing for new hotel, restaurant tax
By Calvin Hennick, Globe Correspondent
Newton Mayor David Cohen wants the city to pounce on new local-option taxes on hotel rooms and restaurant meals that could eventually raise nearly $2 million a year in new revenue.
In a letter to the Board of Aldermen Wednesday, Cohen announced that he will docket an item Tuesday with the board requesting the tax hikes.
“Accepting this recurring money will provide a drastically needed boost to revenues at a time when they are needed most,” Cohen wrote to the board.
City spokesman Jeremy Solomon said the item would be referred to the board’s finance committee, and the full board could vote on it in August.
If that happens, Solomon said, the city could implement the new taxes on Oct. 1. Solomon said the city would make $800,000 from the meals tax and $367,000 on the hotel tax during the 2010 fiscal year, which began July 1. In subsequent years, Solomon said, the city could make $1.2 million from the meals tax and $550,000 from the hotel tax.
Cohen said he would work with aldermen to decide how the money should be spent, but he laid out his own suggestions Wednesday. Cohen suggested spending $337,000 to close a budget gap left by a larger-than-expected cut in state aid, giving $200,000 to the city’s schools, restoring $55,000 in cuts to senior citizen transportation, and using $560,000 for parks and street maintenance.
The new local-option taxes are allowed under legislation signed Monday by Governor Deval Patrick. Cities and towns can increase their hotel occupancy tax from 4 percent to 6 percent and can tack an additional .75 percent local tax onto the 6.25 percent tax on restaurant meals.
Thomas J. O’Rourke, president of the Newton-Needham Chamber of Commerce, said the new taxes would have a negative impact on local businesses.
“Times are tough enough right now,” O’Rourke said. “It’s hard enough to get people to spend money right now as it is, and adding any new taxes is just going to make things more difficult.”
Solomon said that the taxes “aren’t ideal solutions” but that the revenue is needed.
“Of course, every nickel counts in these difficult fiscal times,” Solomon said. “But we hope increases of these sizes won’t be a noticeable disincentive for potential patrons.”
Calvin Hennick can be reached at calvinhennick@yahoo.com.
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Looks like I will be heading to Pinos instead of Bills for my Pizza. Way to make an overpriced town even worse. I feel bad for people who work in Newton that are stuck buying lunch. I hope that new school is worth it!
These guys (liberal politicians) just don't get it... Higher tax rates do not mean higher tax revenues! People are squeezed to the limit, and thus the pie that the city/state wants to claim a slice of will not stay the same size. People will find alternatives, and instead of paying at the higher tax rate, they will pay zero. So, the town (or state) will not get the "revenue" they expect.
And just wait until the 6.25% sales tax rate hits. The morons on Beacon Hill, headed by our clueless governor, are in for a rude awakening.
THIS NEWTON RESIDENT HAS NOT EATEN AT A NEWTON RESTAURANT IN MANY YEARS AND I'LL CONTINUE TO EAT AT ESTABLISHMENTS OUTSIDE OF NEWTON.
AL
Can't Cohen stop being an complete fool. Many people are in a struggle to keep their heads above water and have lost most of their retirement savings. All he can think of is Overrides, Extravagant Schools, Raising parking meter fees and attempting to extract more money from the taxpayers through higher taxes. He is a complete and utter fool and ought to resign and collect his bloated, publicly funded pension.
Things to do in Newton