Adams Discovers Unimplemented Room Tax On Books
ADAMS, Mass. — Town officials discovered that in 2000 the town voted for a 4 percent rooms tax but it was never implemented. What that means for this year's 2 percent proposal is uncertain."The Department of Revenue has no record of it ever being implemented nor rescinded," Town Administrator Jonathan Butler told the Selectmen on Wednesday."None of us were aware of it whatsoever."
Selectwoman Paula Melville found the tax on the town's website — through the list of accepted laws available on the town clerk's page.
Approving the 2 percent tax would supersede the prior one, according Butler, but the board first suggested tabling the vote on the 2 percent tax until more information is provided.
"To me, [the vote] is not that critical. It can wait until June," Chairman Michael G. Ouellette said. "We can't just spring that on town meeting on the 26th. They should know that in advance so they can think about it."
However, the town could be legally obligated to charge the 4 percent tax.
"If it was passed, we had to implement it by law. There is no gray area. If it is in place it should be implemented," Selectman Scott Nichols said. "Essentially, it should be implemented today. It should be implemented tomorrow and it won't change until town meeting in two weeks."
Butler concurred, saying the language in the 2000 vote is nearly identical to the 2 percent warrant heading to town meeting this year.
"It's going to be contentious because, realistically, there have been businesses that opened since then," Butler said. "To just go ahead and implement it now without a public vote to be taken that updates it, I think that is bad practice."
Ouellette asked whether it made a difference because the board is now recommending a lower tax but Nichols said it would change the vote. A no vote for the 2 percent tax could translate to a yes vote for a 4 percent.
"That was based on the fact that we had nothing but now we have 4 and I'm not sure where I stand on it," Nichols said."I would not want to go in there and vote for 2 knowing there is a law on the books and nobody knows about it."
Butler said he will research the discovery more by checking the minutes from meetings at that time to see if the administration later vetoed it. Around the same time plans for the Greylock Glen fell through and Butler said the room tax may have went with it. The tax was set to start in 2001.
"It must have been an oversight. Somebody didn't file the paperwork and it didn't get done," Nichols said.
Melville said she spoke to board members at the time and none of them recalled what happened.
"We need to look into the legality of what happened. Something happened and it never went to the state," Selectman Arthur "Skip" Harrington said.
