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Wednesday, July 22, 2009

Newton finance panel backs tax increase on hotel rooms

The Finance Committee of the Newton Board of Aldermen voted Monday to recommend a tax increase on local hotel rooms, but delayed action on a more-lucrative restaurant meals tax increase.

The eight-member committee voted 6 to 0, with Aldermen Scott Lennon and Ken Parker abstaining, to recommend increasing the tax on hotel rooms from 4 percent to 6 percent.

The proposal will go before the full Board of Aldermen at their Aug. 10 meeting.

Local-option taxes, enabled under the new budget signed this month by Governor Deval Patrick, are being examined in communities including Newton, Natick, Lexington, Milford, Millis, Plainville, and Wrentham.


In Newton, the committee voted 5 to 3, with Adlermen Paul Coletti, John Freedman, and Sydra Schnipper opposed, to place a hold a recommendation on an additional .75 percent tax on restaurant meals.

Committee clerk Danielle Delaney said the committee may hold a public information session on the meals tax and then take up the issue again.

Mayor David Cohen requested earlier this month that aldermen approve both taxes. He said the meals tax increase would generate about $800,000 this year and about $1.2 million in subsequent years.

The hotel tax increase, by contrast, would bring in around $367,000 this year and $550,000 in later years.

Source: boston.com

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