Bill
SD 309
Overview: Bill SD 309 would grant cities and towns the authority to increase the local tax rate on meals and beverages served at restaurants and other dining establishments.Purpose
Overview: Bill SD 309 would grant cities and towns the authority to increase the local tax rate on meals and beverages served at restaurants and other dining establishments.
Purpose and Intent: The bill aims to provide municipalities with an additional revenue source to fund local priorities and services. Proponents argue that the meals tax increase would allow communities to generate funds from visitors and tourists, rather than solely relying on property taxes paid by residents.
Key Provisions:
- Allows cities and towns to raise the local meals tax rate up to 2% (currently capped at 0.75%)
- Requires any meals tax increase to be approved by a local referendum or town meeting vote
- Specifies that revenue from the increased meals tax must be used for municipal purposes, not state-level programs
Affected Parties and Impacts: The bill would impact restaurants, bars, and other dining businesses, who would be responsible for collecting the higher meals tax from customers. Consumers would also see slightly higher prices on prepared meals. Municipalities that choose to raise the meals tax could benefit from the additional revenue for local services and infrastructure.
Procedural and Timeline Considerations: The bill has passed the state Senate and is currently under consideration in the House. If approved, municipalities would have the option to increase their meals tax rates starting in the next fiscal year.
Compiled from official sources — confirm details with the bill’s official record.
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