Government Affairs - Detail

MLA Government Affairs Alert: New Tax Rates Go Into Effect on August 1

July 10, 2009

The FY2010 state budget has been passed by the Legislature and signed by the Governor. Included in the budget are the following increases in taxes which will impact your business:

The occupancy statewide tax remains at 5.7 percent.

Cities and towns will, at local option, be able to implement a local excise on room occupancy of up to 6% (currently at 4%).

October 1, 2009 is the earliest date a city or town may adopt this increase for FY10.

The statewide sales and meals tax will increase from its current rate of 5.0% to 6.25%.

Cities and towns may, at local option, adopt a new local excise tax of up to 0.75% on meals. These funds will stay in the cities and towns.

Again, October 1, 2009 is the earliest date this local meals tax can be adopted for FY10.

Messages have been sent to all municipal governments regarding the new changes.

For more information, please contact Michael P. Auerbach, MLA Deputy Director, at 617-720-1776 or via e-mail at mauerbach@masslodging.com.