S. Hadley eyes local meals tax

Sunday, August 23, 2009

By SANDRA E. CONSTANTINE

sconstantine@repub.com

SOUTH HADLEY - Town Meeting members will be asked at a special session on Tuesday to vote on local option taxes.

The first article on the warrant asks if the town will impose a local option meals tax of .75 percent. The second one asks if the town will impose a local option room occupancy tax of 6 percent.

And some of the holders of the 42 common victualler's licenses in town are unhappy about the prospect of more taxes on top of the 6.25 percent they already pay the state on meals.

"Business is tight already," Bruce H. Perron, the owner of the Egg and I restaurant on Main Street, said. "If you want to put people out of business, that is what you do."

Alan J. Anischik, the owner of the Food 101 Bar & Bistro, concurred.

"I'm certainly not for it," he said. "Any kind of higher tax I'm not for. I don't think taxing our way out of problems is the answer. Restaurants can't afford that right now."

The town's 2010 fiscal year budget adopted at the annual Town Meeting assumes revenue from the local option meals tax of $272,471, according to a memo Interim Town Administrator Jennifer L. Wolowicz and consultant Barry L. Del Castilho sent to Town Meeting members.

However, estimates have since been revised to $66,172 for the local option meals tax and $3,000 for the local rooms tax for a total of $69,172. Those estimates are for the period starting Oct. 1 and continuing through the remainder of the current fiscal year, which ends June 30.

The $203,299 difference between the earlier estimated revenues of $272,471 and the current estimate of $69,172 should be largely offset by a increase in unrestricted state aid of $160,850, the memo states.

Officials have estimated the net effect on the current budget will be about $100,000, which could be tapped from free cash. However, officials are not seeking an appropriation from free cash at Tuesday's Special Town Meeting as there may be further changes in revenues and expenditures, according to the memo.

Tuesday's special Town Meeting will take place at 7 p.m. in Town Hall Auditorium.

Amherst, Northampton and Springfield have already passed the local option tax. The issue was discussed in Westfield Thursday night, is under study in Chicopee and is scheduled for a Town Meeting vote in Hadley Tuesday and a public hearing in Palmer Thursday. Wilbraham selectmen also are considering whether to bring it to Town Meeting.