The Municipal Empowerment Act would expand communities’ income sources, Healey says.
Governor Maura Healey filed a bill Monday that would, in part, allow towns and cities to increase taxes on meals and lodging, which is currently capped by state law.
The Municipal Empowerment Act would expand on communities’ income sources, Healey says. It would also put pandemic-era norms such as hybrid town meetings, outdoor dining permits, and to-go cocktails into state law.
The bill gives municipalities the option to increase their hotel, motel, and other rental tax from 6% to 7% (or half a percentage higher for Boston), and their meal tax from the set .75% to 1%. The bill would also let cities and towns increase their motor vehicle excise tax by 5%.
Healey announced the bill last week at the Massachusetts Municipal Association conference, where it received an “enthusiastic response from the local leaders,” the organization said.
“This package reduces red tape that municipal leaders far too often encounter, and gives them more options to utilize tools that will make their communities stronger,” Lt. Gov. Kim Driscoll said.