Bill filed by Massachusetts governor would give communities freedom to raise certain taxes
NEW BEDFORD - Massachusetts Gov. Maura Healey has introduced the Municipal Empowerment Act, which hopes to give cities and towns the ability to raise certain taxes and could mean increases coming to your neighborhood.
The bill would affect taxes for drivers, dining out and on hotels. One cafe and AirBnb owner in New Bedford said the news leaves her concerned.
"Any added costs will affect everyone. It could deter people from eating out, going on vacation," said cafe owner Jessica Arruda.
Healey's plan would allow cities and towns to raise the lodging tax from 6 to 7%. On top of the state's meals tax, municipalities would have the option to add extra .25% to their local fees up to 1 percent. And for drivers, the excise tax could increase by 5 percent.
"I think that would be absolutely ridiculous if they can just raise it on their own without anybody's permission and everybody voting on it," said Petro Jorjakis. "That's the whole point of the voting system, isn't it?"
Somerville Mayor Katjana Ballantyne said communities are also feeling the financial pinch and added taxes could help cities and towns balance their budgets. But New Bedford City Councilor Shawn Oliver is calling on Healey to halt the tax increases.
"We're still under the crippling grip of inflation, we're still under the housing market crisis and at some point, we have to not go to the taxpayer, with out hand out, asking for more, asking for more," said New Bedford Ward 3 City Councilor Shawn Oliver.
"I understand inflation and what not," said Arruda. "Just everything is increasing. Unfortunately, people's wages aren't increasing either, so everyone's just trying to make it."
