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Bill

HD 988

An Act to allow cities and towns to increase the local tax rate on meals

194th Legislature (2025-2026) Introduced by Carmine Gentile and 1 co-sponsor

Allows Massachusetts municipalities to independently increase local meals tax rates to boost municipal revenue without state legislative oversight.

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WeVote Research Nonpartisan
Bill Summary · HD 988

Legislative bill overview

HD 988 would authorize Massachusetts cities and towns to independently increase their local meals tax rate beyond the current state-set limit. Currently, the state controls meals tax rates; this bill would devolve that authority to individual municipalities, allowing them to set higher rates tailored to local revenue needs.

Why is this important

Local governments face ongoing budget pressures for schools, public safety, and services. This bill could provide municipalities with additional revenue without requiring state legislative approval for each rate change. However, it also shifts tax burden decisions from state to local level, potentially creating uneven tax rates across the state.

Potential points of contention

  • Economic competitiveness: Higher local meals taxes could incentivize restaurants and diners to relocate to lower-tax neighboring communities, potentially harming local hospitality businesses and employment
  • Regressive impact: Meals taxes disproportionately affect lower-income residents who spend a larger percentage of income on food, raising fairness concerns
  • Tax complexity: Varying rates across municipalities could complicate business operations for restaurant chains and create consumer confusion about actual costs

Compiled from official sources — confirm details with the bill’s official record.

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