''If we are going to talk about the state being a partner with the municipalities, that includes us,'' [Tobin] said. ''We have to take a step back. We need friends. We need strength in numbers across the state to make that argument.''
Back in August, The Boston Globe ran an editiorial on this proposal as well.
Note: The full article is featured after the fold as the Cape Cod Times only grants free access to their articles for 7 days.
Could Cape claim slice of meals tax?
By DAVID KIBBE
TIMES BOSTON BUREAU
BOSTON - A Boston city councilor is reaching out to Cape Cod to support an idea that would provide more money for schools and municipal services without leaving diners cold.
Councilor John Tobin wants to set aside 1 percent of the state's current 5 percent meals tax for cities and towns. The money would stay in the town where it was generated.
Tobin said the effort by Boston Mayor Thomas Menino to give municipalities the local option to increase the 5 percent meals tax by 1 percent to fund local services had gone nowhere at the Statehouse for several years.
The idea of raising the meals tax was aggressively opposed by the state restaurant industry, which said it would hurt business. Tobin's idea, which would require approval by the state Legislature, would not impose a financial burden on restaurant owners or diners, because the tax would stay at 5 percent.
He estimates it would raise $115 million for cities and towns.
''Our mayor has been out there beating the bushes for the last several years, filing local option bills to raise it from five to six percent,'' Tobin said. ''Nonetheless, it is evident that there is not much of an appetite for that up in the Legislature, and it gets into the whole raising taxes (debate). Obviously, the restaurants weren't too pleased about it.''
So Tobin has started drafting a bill that would keep the meals tax at 5 percent, but dedicate 1 percent to local aid.
He sent out letters last week to 40 communities in the state, focusing on areas like Cape Cod and the Berkshires that do a heavy restaurant business. He expects to hear back soon.
Tobin said Barnstable Town Manager John Klimm was one of the first people he ran the idea by. Tobin was a Statehouse aide for Klimm when he was a state representative. Klimm couldn't be reached for comment for this story.
But Tobin said he expects the vast majority of towns in the state to support the idea, since it would only add to their local aid numbers.
''If we are going to talk about the state being a partner with the municipalities, that includes us,'' he said. ''We have to take a step back. We need friends. We need strength in numbers across the state to make that argument.''
The cities and towns may have support from a powerful corner office at the Statehouse. Gov.-elect Deval Patrick is open to the idea, and it has the support of the incoming lieutenant governor, Worcester Mayor Timothy Murray.
During the campaign, Patrick called for cities and towns to have the local option that Menino sought to raise the meals tax to pay for local services.
Once Tobin files the bill, the Legislature will be required to hold a public hearing on it.
''At the end of the day, property taxes are going through the roof,'' Tobin said. ''We have to find some relief for folks.''
David Kibbe can be reached at dkottaway@aol.com.
