Cheshire to Decide Local Meals Tax
CHESHIRE, Mass. — Votes may see the failed local meals tax article return this year on the annual town meeting warrant, this time with more information.
Last year, town meeting rejected a proposal for a surcharge that would have added an additional 0.75 percent — equivalent to 75 cents for every $100 spent — on all food sold by vendors and merchants. This is in addition to the state's 6.25 percent tax.
The decision likely stemmed from a misunderstanding of the proposal, Selectman Raymond Killeen
said.
Voters thought the tax would be on the business itself; when in fact, that tax is being applied to specific products, such as sandwiches and drinks at restaurants, he said, and most of the municipalities in Berkshire County have this tax, and people don't even notice it.
Although residents patronize these restaurants, the tax will also help the town generate revenue from tourists dining at local establishments like Whitney's Farm Market, which visitors frequent.
"Towns [are] a business, and you have to support the business. You've got to raise revenue through taxation. So, either we can get it through this source, where the majority of people are from out of town, they're not locals, or we're going to have to take it out of locals' pockets. It's going to be one or the other. This is an easier source," Killeen said.
When you go to a restaurant in areas with this tax and look at your receipt, you will see two tax sections, one is the state's tax and the other is the local tax, he explained.
The Dunkin Donuts located in the Shell gas station, 173 North St., is already charging patrons this tax, but the funds are going to North Adams, not Cheshire, he said.
If you look at the receipt from that Dunkin Donuts, North Adams is listed as the city receiving the monies from the local sales tax, Selectwoman Michelle Francesconi agreed.
If voters approve this tax, the town can be added to the TaxConnect app used by the merchant. The state Department of Revenue will then distribute the collected taxes to the town specified by the merchant, allowing the town to begin collecting those taxes, Killeen said.
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