Governor Maura Healey has introduced legislation that would allow cities and towns to increase taxes on hotel stays, meals, and motor vehicle excise bills. The goal is to provide municipalities facing fiscal challenges with more revenue options without raising property taxes. The proposal, which includes a 1% increase in meals taxes and a 5% surcharge on motor vehicle excise bills, has been met with both support and criticism.
Last year, a similar bill failed to clear the Legislature, but this year’s version has gained support from local officials. Business groups, however, have raised concerns about the impact on small businesses. Boston Mayor Michelle Wu and Quincy Mayor Thomas Koch have expressed support for the bill, citing the need for additional revenue options.
Healey’s proposal also includes updates to enforcement mechanisms for double pole violations, which has been welcomed by local Public Works Departments. The bill aims to provide cities and towns with more flexibility in generating revenue and managing fiscal challenges.
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