An Act authorizing the town of Lynnfield to impose a local sales tax upon restaurant meals originating within the town

194th Legislature (2025-2026) Introduced by Brendan Crighton and 1 co-sponsor

Lynnfield could create a local meals tax on restaurant meals originated in town, with rate and enforcement set by local by-laws and revenue kept by the town.

Read second and ordered to a third reading

Summary of Bill H 5417 (194th Massachusetts Legislature)

Purpose and intent

The bill authorizes the town of Lynnfield to impose a local sales tax on restaurant meals originating within the town.

The measure adds Lynnfield-specific authority to levy an additional tax on meals purchased at restaurants located in Lynnfield, distinct from state and other local taxes.

Key provisions and changes

Establishment of local meals tax authority: Lynnfield would have the discretionary power to impose a sales tax specifically on restaurant meals originated within Lynnfield. The bill designates this as a local tax, separate from the statewide sales tax.

Tax base: The tax base would be restaurant meals purchased for consumption on the premises or for takeout/delivery, as applicable to the local meals tax regime.

Rate and administration: While the bill authorizes the imposition of the tax, it delegates to town government the administrative process to set the rate, subject to applicable state laws and guidelines governing local option taxes. The exact rate, exemptions, and administrative details would be determined by town by-laws consistent with state law.

Revenue use: Proceeds from the local meals tax would accrue to Lynnfield and could be used at the town’s discretion for local purposes, potentially including general fund support or specified municipal programs, subject to ordinance provisions and any applicable state constraints on local revenue use.

Enabling framework: The measure provides the legal mechanism for Lynnfield to enact local ordinances or by-laws to implement the tax, including necessary administrative, reporting, and enforcement provisions.

Who would be affected

Restaurants and food service establishments operating in Lynnfield that serve meals originating within the town.

Consumers purchasing meals from Lynnfield restaurants (whether for on-premises dining, takeout, or delivery), who would pay the local meals tax.

Lynnfield municipal government, which would administer the tax, collect revenue, and allocate funds in accordance with town bylaws.

Procedural and timeline aspects

Action history indicates:

May 7, 2026: Referred to the Senate Committee on Revenue.
May 7, 2026: Senate concurred (suggesting passage in the Senate or agreement on the measure).

As a local option tax, any implementation would require subsequent town-by-law actions in Lynnfield to authorize the tax rate, exemptions, collection procedures, and expenditure plans, in line with statutory requirements for local meals taxes.

The bill’s passage would not automatically impose the tax; it grants authority for the town to adopt by-laws to implement it.

Potential considerations and impacts

Financial impact on Lynnfield residents and visitors: introduction of a new local tax increases meal costs for dining out in Lynnfield; revenue raised could fund local services or projects.

Economic impact on local businesses: potential changes in consumer dining behavior; need to align with state sales tax and any existing local tax regime to avoid duplicative taxation.

Governance and administration: requires establishment of administrative processes, enforcement, and reporting for the local tax, including compliance with state unified tax collection systems where applicable.

If you’d like, I can add a comparison to similar local meals taxes in neighboring towns or outline a hypothetical by-law framework Lynnfield might adopt to implement the tax.