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Mayor unveils meals tax details




$50M in sales will bring city $515,000
ATTLEBORO - City restaurants need to generate $50 million in sales for the city to reap $515,000 on a 1 percent meals tax that Mayor Kevin Dumas has used to plug a big revenue gap in the 2010 budget.

That's a lot of steaks, seafood and french fries, and some city councilors questioned whether local eateries can pull in that much cash, but Dumas said his administration ran the numbers with information from food industry sources, and they checked out.

He, too, was stunned by the income, but told councilors Monday the figures could well be served up by the city's 71 restaurants.

"At first I said, 'No way, something must be wrong,'" he said.

"But we figured out how much each restaurant would have to do for each day it's open and it's a reasonable number," he said. "The numbers add up very quickly to that dollar amount." He said some McDonald's restaurants are known to rake in $10,000 a day.

The $515,000 is an important gap filler for this year's budget and is based on 10 months of restaurant revenue to allow time for the tax process to get up and running.

Dumas is also using $600,000 from the stabilization account and saving another $530,000 with unpaid worker furloughs to balance the $104 million spending plan.

The meals tax, which must still be authorized by the state Legislature and approved by the council, will also help to support future budgets, Dumas said.

"We're not just worried about today, but we're worried about sustainability going forward," he said.

Councilor Jerry Chase couldn't quite swallow the numbers.

"I reserve the right to remain skeptical," Chase said.

 


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View Comments » 34 comment(s) « Hide Comments

shawnakeli wrote on Jun 23, 2009 8:27 AM:

" all these fees put on our taxpayers are making it difficult for all of us to stay above water. I think its about time we asked our city workers to take a cut in pay and maybe pay more towards their benefits as we all are having to do. I'm sure you could do without a few extra jobs down at city hall. I personally am sick of paying high taxes and added taxes and fees in return for nothing!! I have no children in school, my street gets half plowed in the winter, and the way I see it,I get nothing in return for all the money I pay in taxes!! "

color wrote on Jun 17, 2009 12:51 PM:

" What a shame. New sidewalks, no pedestrians, new restaurants, new taxes, empty store fronts and no customers anyway. Way to go. "

bijou wrote on Jun 17, 2009 12:40 PM:

" The Attleboro Eateries don't have much to offer anyway. Just one more reason to go elsewhere. "

ishouldbemayor wrote on Jun 15, 2009 10:19 AM:

" Maybe they should close the pools!! OR maybe people who go to the pools should pay $5 to get in so I don't have to pay more to eat! "

casino1 wrote on Jun 10, 2009 1:28 AM:

" Many communities in RI already have a local option meals tax as does a lot of communities in NH. Their meals tax is also already higher as is their sales tax. So good luck trying to find a community with lower meals.
Maybe the City Council should just forget the meals tax and close the pools??? How many of you would complain if they yanked the towels out from under the kids. "

realist wrote on Jun 9, 2009 11:17 PM:

" For those who scoff at what they consider insignificant amounts obviously don't understand that it's the principle not the money. Rather than cutting back and taking their lumps like the rest of us in private business the pols look for new revenue streams, in particular new things to tax. Any money that is paid in taxes is money not going to the patronage of private businesses - the only place wealth is created. "

rebelrouser wrote on Jun 9, 2009 8:15 PM:

" Reform Before Revenue ! "

jimr28 wrote on Jun 9, 2009 5:07 PM:

" Drive to NA and have a few cocktails with dinner. We need the extra income. "

publius wrote on Jun 9, 2009 4:48 PM:

" So let's get this straight: You say this tax will only hurt the small business person. So to protest, you won't go to that small business, thus hurting the small business person.

Now, assuming you get 15 mpg in your car, you are going to drive 5 or 10 miles to avoid the 1% tax. So at 15 mpg, driving 10 miles costs about $1.67, assuming $2.50 a gallon.

Based on a family meal costing $50.00, with the 1% tax adding up to .50cents, your savings is -1.17.

That's not much of a protest. No wonder we are so screwed up. "

usafvet wrote on Jun 9, 2009 3:32 PM:

" attman63 - its not about punishing the restaurants, its about what we can afford, as it is we have to cut back on how much we spend on luxeries such as eating out, we just can't afford that additional hit to our wallet. "

familyguy wrote on Jun 9, 2009 3:03 PM:

" For those of you that are SO willing to roll over for the Mayor why don't you go ahead and pay 2 or 3 per cent more and save the rest of from the tax man. How many 1 per cents have we been hit with over the years? Why do we in Massachusetts have prop 2 1/2? It keeps the crooks from siphoning your hard earned dollars right out of your back door. Maybe it's time for another Boston Tea Party. Maybe they can tax toilet paper. But then again they probably use more toilet paper then the rest of us and they would never tax themselves. "

attman63 wrote on Jun 9, 2009 2:24 PM:

" It does not seem right to penalize our local resturaunts for this by going somewhere else. They are already dealing with slower business and higher food prices. "

usafvet wrote on Jun 9, 2009 1:23 PM:

" to those that don't think the 1% will hurt Attleboro restaurants, first you need to find out how much of a given restaurant's business is local, and how much is from out of town. Now, how many people are going to be willing to drive from say, Foxboro to Attleboro just to pay an additional 1% on their meal? I know I won't. I also won't stop if I happen to be in Attleboro to eat, if I can stop elsewhere on my way home and pay 1% less. Money is tight, and sometimes that extra $1 will make a difference between going out and not going out, or MacDonalds vs Olive Garden. What the mayor should be doing, as others have said here, is cutting spending, as should the Gov and the Pres. I went to my boss the other day and said that because of higher prices and higher taxes, I would need a pay raise. He still hasn't stopped laughing at me. "

kevin h. wrote on Jun 9, 2009 1:07 PM:

" It will "save or create jobs". "

jeff79 wrote on Jun 9, 2009 12:36 PM:

" You let them have 1% here and 1% there and before you know it youll be paying a 5% meal tax. I dont know how most people operate but when money is tight, I cut my spending. Let me guess, if we dont have the tax, the city will have to lay off all the police and firefighters. Oh, and then theyll have to close the schools as well.

Where is the accountability? Its unfortunate for the local business owners, but Ill eat in Norton and Mansfield because I am tired of how things are done around here. We need to send a message that enough is enough. "

1333 wrote on Jun 9, 2009 12:08 PM:

" I have a better idea. Cut taxpayer subsidized union benefits by 2% "

common_sense wrote on Jun 9, 2009 10:43 AM:

" Seriously when I dine out I pick what we're in the mood for at that moment, not what my tax rate is going to be...and yes I always tip 20% plus.
Do you realize how foolish it sounds to drive to Mansfield, Norton or were every to avoid 1%? Would you prefer they raise your property tax? I'll pay the measly 1%, if it adds up to $40 for the year I'll suprised. Just another reason to support th local business. "

educationfirst wrote on Jun 9, 2009 10:35 AM:

" Honestly, I'm surprised that the restaurants are okay with this. I will likely head over to a North Attleboro or Mansfield restaurant now, rather than pay a city restaurant tax on food. I'm not against new taxes to support needed services... but I am very much against this type of tax. Restaurant food is already taxed, so adding an additional one is just wrong. I can't imagine that this won't hurt Attleboro restaurants. For me it's not even the small added cost, but the principle of the matter. "

romanjor wrote on Jun 9, 2009 10:28 AM:

" How many perks do city employees have? It almost seems that everyone with some sort of title has a city car. They have an executive secretary. The secretary has a secretary. How many cell phones are we the taxpayers picking up the tab for? How many expense accounts are there? I don't like to see lay-offs but everytime a city employee complains that they are over worked along come a newly created position, at taxpayer expense, to pick up the slack. Then it becomes a job for life. It's time to clean house. Instead of laying off teachers, firemen or policmen lets take a good look at all the other waste the city has created. "

anavoter wrote on Jun 9, 2009 9:19 AM:

" Mayor: instead of increasing taxes why not cut expenses??? That is what most residents do when they have not got the money.... they don't spend or cut back. Live within thier means. "

hope for attleboro wrote on Jun 9, 2009 8:56 AM:

" hmmm, pay a little extra when you go out to eat or lose some emergency services in the city....seems like an obvious choice to me. "

ishouldbemayor wrote on Jun 9, 2009 8:51 AM:

" I agree with sunnie13. I won't go to Attleboro to eat anymore. Good way to squash business and make Attleboro an even less competitive city. Good job Dumas s. When can we vote this guy out? "

sunnie13 wrote on Jun 9, 2009 8:46 AM:

" Norton, Mansfield, Foxboro, Plainville and North will get my business....in this day and age .40 or $40, it all matters and why as a non attleboro resident would I want to give it to them when so many other options are within the same distance. "

AndrewJackson wrote on Jun 9, 2009 8:36 AM:

" Mayst You are correct!!! Once a Tax always a Tax, and Taxes always go up. "

ps911fan wrote on Jun 9, 2009 8:24 AM:

" GoBigBlue is correct folks, use your calculator. Really, is 40 cents going to stop you from frankly anything regarding your lives and families.

There's a lot of hyperbole here to make it seem as if Attleboro food servers will be adversely affected.

I wonder where the mayor got such an estimate and I think he should be able to back up and conpare numbers on previous revenue gotten from restaurant owners. If $50 million is a fair estimate and fairly reasonable estimate, then this meals tax is no big issue.

The idea that it will cost owners who already have to collect tax additional expenses is ludicrious as the already have to do the same thing now.

I think many of the posters here are determined to undermine any good will in this city as all they seem to do is excoriate anyone who cannot fall into the quagmire of conservative / teabagger ideology where being wrong and angry are more important than being right or factual.

have you no shame at all? "

harry hindsight wrote on Jun 9, 2009 8:21 AM:

" I always thought that the reason for a tax was for the betterment of what it was collected for. Tolls are for the upkeep of roads, exsise tax for the same thing, and cigarette tax for the education and health care of those that have lung problems. For what benefit is the tax on food going to do for the restaurants, maybe advertisement to promote the good eats in Attleboro? "

GoBigBlue wrote on Jun 9, 2009 8:02 AM:

" I don't understand all the hype, it's one measley percent!! That's a whole $0.40 on a $40.00 bill!! Go drive to North Attleboro to avoid the $0.40, I am sure more will be spent in gas driving just to avoid paying an extra 1%. Not to mention, Rhode Island has had the extra meal tax for years.... are you telling me that ALL of you avoid Rhode Island restaurants? You never go to Spumoni's, Chelo's and Gregg's? "

kevin h. wrote on Jun 9, 2009 7:48 AM:

" Just wait. It was so easy for them to add this tax, I predict they will start taxing food and clothing. First it will be "BAD" foods like fats and sweets and giant size clothes. "It's for the children" Then it will be all food. And anything else they can get their greedy hands on. The political class has driven us into this spending tragedy but like the crack addicts they are; they can't help but keep the high going. But they boil us so slowly that people think this is the way it is, the way it should be. We forget what Freedom even means. Soon, even though we work, we will only get an allowance from the Mommy government, and the transition to communism will be complete. God help us from ourselves. "

snooker wrote on Jun 9, 2009 7:40 AM:

" piano1031...Rt 123 doesn't go to North Attleboro!!! "

piano1031 wrote on Jun 9, 2009 6:53 AM:

" I agree with "mayst" - it will be the restauranteurs who suffer, but not just on the bookkeeping front. (Most registers are computers now and the work is done for you...) They'll suffer because you can't actually get to any of the establishments in Attleboro.

The pie-in-the-sky downtown plan is exactly that... who is going to park in the center of town in a lot with few spots, take your life in your hands to cross Rt. 118 only to grab fast food?

Just the other day I tried to get to a restaurant and my usual route (Olive Street) is closed, my secondary route was blocked due to a traffic accident on the Thacher Street bridge (caused by poor design), and because of all these detours, the center of town was a MESS!!

I'd just as soon get on Rt. 123 and head to NA for some food. I'll get there a lot easier. "

ken wrote on Jun 9, 2009 6:26 AM:

" Another new tax is just another bad idea. Creates additional business expenses collecting and paying the tax, adds an additional fee for the privledge of going out to eat. Seems to me that businesses are leaving Attleboro, how is this going to entice them to stay? "

mayst wrote on Jun 9, 2009 5:59 AM:

" Also in reading this story, you notice this tax will NEVER go away. My guess is once it is voted in it will be alot easier to raise to 2% next year, then 3%, etc. Some people feel 1% is not alot, but it opens the door for more later. "

mayst wrote on Jun 9, 2009 5:54 AM:

" With so many dining options in the area this tax will hurt attleboro restauranteurs. Someone will need to do the book keeping, waitstaff will suffer due to less business and/or lower tips. Someone on the city side will need to do audits to make sure all the tax collect is correct and all is forwarded to city. I'm sure many will just go short distance to North Attleboro and dine in their many restaurants. "

iflyhelis wrote on Jun 9, 2009 5:36 AM:

" We already have a "State" meals tax going on for us right now. So now they want to add a City meals tax onto the bottom total of your meal also?

Looks like I'll be skipping out on eating out in the Attleboro's area in the future. "