Restaurant Industry Leaders Express Outrage Over the Governor's Local Meal Tax Proposal

Wednesday, January 28, 2009: Boston, MA - Today, Massachusetts' restaurant industry leaders expressed outrage at the Patrick Administration's call for an increase on the state sales tax on meals as well as the creation of a new local option meals tax. "This proposal singles out restaurants at a time when they can least afford it!" said Peter Christie, CEO of the Massachusetts Restaurant Association. The Governor's proposal would raise the Massachusetts sales tax for restaurant meals to 6% and also allow cities and towns to impose a new 1% local option meals tax. This controversial proposal takes more dollars from residents striving to make ends meet. It taxes them on the very food that they eat as more and more people eat out, not as a luxury, but as a lifestyle necessity. The restaurant industry is concerned that a tax increase on citizens is counterproductive given the current economic conditions. Presently, meals eaten away from home are subject to our state sales tax. "To single out restaurants for this 40% hike is blatantly unfair. Our industry, not unlike the automobile industry, is reeling from the economic downturn," Christie said. "Would anyone suggest targeting automobiles for a local tax? Of course not, but that is exactly what the Administration is suggesting to us!" Overall, restaurants in the Commonwealth of Massachusetts employ nearly 10% of the total state-wide workforce. They collected more than $644 million for the general fund last fiscal year. "Restaurants support countless local community charities and civic organizations and play an important role in revitalizing most neighborhoods in our cities," Christie said. While many owners are struggling to survive, restaurateurs are now even more concerned about their future as this tax would make it even more difficult to survive. The Massachusetts Restaurant Association, and the 5,000 restaurants that it represents, vows a fight on this issue. To join in this struggle, please call the MRA at 508-303-9905.