The meal tax would charge an excise of .75 per cent on the sale of meals at restaurants in town, adding onto the existing 6.25 per cent state sales tax.
A local excise meal tax is on the table for Chilmark.
Select board member Marie Larsen and Martha’s Vineyard Commission Island housing planner Laura Silber presented the potential new tax at the select board meeting Tuesday.
“This is an untapped bit of revenue for the town,” Ms. Larsen said. “Seventy-five cents on a $100 check to a person at a restaurant.”
The meal tax would charge an excise of .75 per cent on the sale of meals at restaurants in town, adding onto the existing 6.25 per cent state sales tax. The total sales tax on meal sales would then be 7 per cent.
The revenue would be collected by the state and then distributed to the town. There is no required use for the funds, meaning towns have the authority to decide how they’re used.
According to Ms. Silber, most towns in Massachusetts have adopted this tax, including Nantucket and all of Cape Cod. On the Island, Tisbury and Oak Bluffs have implemented the state-allowed tax.
According to numbers researched by Ms. Silber for the MVC and provided to the select board, 2024 revenue numbers were $485,869 for Oak Bluffs and $272,808 for Tisbury.
The added labor to implement this tax is minor, according to Ms. Larsen.
“Restaurants are already paying the six and a quarter, so it’s not like they have to start reporting separately,” she added. “They can report this at the same time as they report that six and a quarter.”
Ms. Silber said that other Island towns are also considering adopting this tax.
“From what I’m hearing from a lot of folks in these towns, people actually weren’t aware that this was an option where I think it just wasn’t really revisited after it was originally made an option in Massachusetts,” she said.
Select board member Jeffrey Maida was hesitant about the tax increase.
“It seems like every time we turn around, we’re adding more taxes to our population, whether it be short-term rental tax or a room tax, and I understand it’s 75 cents but at some point, we shouldn’t get penalized and pay extra for everything,” he said.
Board chair James Malkin said he wanted more information before going forward with a decision.
“I think we should look at it,” he said. “I think we should see what the impact of revenues of the town would be, and then we should discuss it further and see where [it could go].”
Comments
Why create a tax for no
Donnie BostonWhy create a tax for no reason? What’s next a toll booth?
Tax, tax, tax. It's not the
tom BostonTax, tax, tax. It's not the solution to everything. Short money but this stuff is endless.
If we just had a little more
Pete up-islandIf we just had a little more money and couple more laws we can fix this.
What is the point of this
Elisha Wiiesner ChilmarkWhat is the point of this proposed tax? Chilmark doesn't need the money. I'm with Mr. Maida on this one. I understand that it's small but it's just one more thing that will make it more expensive to live here.
While I am certainly opposed
MWG ChilmarkWhile I am certainly opposed to nickel and diming your own residents, this seems like a well placed tax as far as Chilmark is concerned as long as we continue to use the money to improve the lives of residents, and increase opportunities for young people to live here.
It seems to me that most of the revenue generated by this tax will not be from Chilmark residents, but from vacationers here to enjoy our fine eating establishments. I think if one is already struggling to live here, going out to eat isn't really in the cards anyway, at least not often.
How much revenue would this
Joe ChilmarkHow much revenue would this really generate in Chilmark? OB and VH have far more restaurants so knowing their tax revenue from this isn't particularly relevant.
We could use more restaurants in Chilmark. It's already hard enough to make a restaurant profitable with the short season, high labor costs, and inability to sell alcohol. This seems like it wouldn't make a huge difference to the town and probably wouldn't hurt the restaurants much, but implementing it wouldn't exactly be sending a message of support to our local restaurant operators. Of course it would help restaurants if it were combined with a change in the ban on alcohol sales in Chilmark...
Agree with all above.
mike kelfer chilmarkAgree with all above.
If the town needs these extra few dollars than bump up the beach parking fees for non-residents/homeowners.
Use the funds to entice more lifeguards and maybe even extend the hours an hour on each end...
just a thought.
Restaurants? Chilmark Tavern
Chappy Guy ChappyRestaurants? Chilmark Tavern... Homeport... did I miss one?
Oh, cool, another tax we hadn
John Aldeborgh KatamaOh, cool, another tax we hadn’t thought of. It’s only 0.75% so it’s no big deal! Great, it won’t effect average year round residents because they already can’t afford to go out to dinner.
At some point we reach the point where the camels back breaks. The island is already unaffordable in almost every imaginable way as it is, so this only makes it worse.
More taxes and more regulation are not the answer, just the opposite.
If they really want to
Chill MarkIf they really want to increase tax revenue, then they should end the absurdly Puritan practice of banning alcohol in town. Taxes on alcohol sales would far exceed any revenue increase they’re proposing here. Otherwise, accept the status quo like the rest of us must.
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