Selectmen Mulling Local-Option Meals Tax For Norfolk

Selectmen are considering asking Town Meeting to implement a local-option meals tax on restaurants in Norfolk, which would bring the total tax up to 7 percent.

The tax would bring in an estimated $60,000 a year to the cash-strapped town government.

But a local restaurant owner said this week he’s wor­ried about the effect increased taxes are having on wait staff.

The Massachusetts Legislature empowered cities and towns to implement the local-option meals tax last year, at the same time that lawmakers increased the state’s sales tax by 25 percent, from 5 percent then to 6.25 per­cent now. Currently all restaurant meals in the state are taxed at 6.25 percent by the state, and towns and cities decide whether to tax an addition 0.75 percent for use by the lo­cal government. Selectman Jim Lehan last year brought up the idea of pursuing a local-option meals tax for Norfolk, but select­men decided not to pursue it. “I’m inclined to think that we have to reconsider that,” Lehan said during the selectmen’s meeting this past Thursday morning. Selectman Jim Tomaszewski also expressed at least preliminary support for the idea. “I hate doing it, but given the situation, 60 grand is 60 grand,” Tomaszewski said. “… I hate it, too,” Lehan said. “But unless you can find60 grand some place I don’t know about …”

Town officials foresee a projected deficit between ex­pected expenses and expected revenues for next fiscal year of more than $1 million, coming on the heels of sev­eral lean budget years that have forced reductions in local services. The new fiscal year begins July 1. Town officials say it’s like that selectmen will propose an operating budget override this spring to try to provide more revenue through increased taxes in order to avoid at least some layoffs and services reductions.

The third member of the Board of Selectmen, Rob Garrity, announced last year in no uncertain terms that he will never support a local-option meals tax. Tomaszewski noted that the tax is relatively small, at three-quarters of 1 percent. “This year,” Garrity replied. “Next fiscal crisis it’s a point and a half. Next one it’s 3.” But the measure would only need two votes on the board to move forward. For the 0.75 percent local-option meals tax to go into effect in Norfolk, Town Meeting would have to approve it. The measure could go to Town Meeting in May, to take effect in October. Norfolk has four restaurants that would be affected by the local-option meals tax. Joe Guarino, owner of Guido’s Restaurant on Route 1A in Norfolk, noted in an interview this week that restau­rants simply collect the tax from their customers.

“It’s not costing me as a business owner anything, ex­cept if people start watching what they spend. It’s getting passed on to the consumer,” Guarino said.

He mostly notices the increase in the state meals tax because he sends 25 percent more to the state than he used to.

But he has also noticed that tips seem to be getting smaller as the tax has increased. In recent years tips to bartenders have totaled about 25 percent of a patron’s bill while waitresses have made 18 to 20 percent.

“I’m noticing a lot more customers are tipping 15 per­cent. That’s old-fashioned,” Guarino said.