Last modified: Thursday, May 24, 2007 9:38 AM EDT

Governor would consider statewide tax on meals

ATTLEBORO - Gov. Deval Patrick said Wednesday that he is open to an idea by Mayor Kevin Dumas to apply an increase in the meals tax statewide, rather than on a local basis.

Dumas said he supports the idea of raising the meals tax to help cities and towns fund local services and schools, but would prefer it be levied evenly across the state.

The governor wants the Legislature to authorize cities and towns to impose their own 1 percent or 2 percent meals tax on top of the state's 5 percent tax.

The cities and towns would be allowed to keep 75 percent of the income while the balance would be used to ease property taxes.

The "local option" approach could result in some towns having a 2 percent meals tax, some a 1 percent tax and others that do not adopt the measure having no tax at all.

Dumas said if the tax were imposed statewide, the extra revenue could then be returned to the cities and towns without creating a competitive imbalance.

The mayor's comments came at a meeting with the governor and his cabinet at city hall.

While leaving the meeting, Patrick said he is open to Dumas' idea, and has heard the same suggestion from other officials.

At the meeting, the mayor said he also supports the governor's call for higher local hotel taxes and a plan to allow cities and towns to join the state's health insurance system.

However, Dumas said he is opposed to Patrick's proposal to merge cities and towns into the state's pension system.

The proposals are part of Patrick's Municipal Partnership Act, which he said will ease the financial burden on cities and towns and lessen dependance on the property tax.

The governor said he believes his health insurance plan is in good shape and will be approved by the Legislature.

The Legislature still needs to be sold on the meals tax, he said.

State Reps. John Lepper, R-Attleboro, and Betty Poirier, R-North Attleboro, said they see very little support for a higher meals tax.

They said they have not heard anyone in the Statehouse propose that the higher tax be applied statewide.

The health insurance provision should be passed after the Legislature is done passing the state budget, they said.

JIM HAND covers politics for The Sun Chronicle. He can be reached at 508-236-0399 or at jhand@thesunchronicle.com.