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Bill

Bill

HD 2807

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

194th Legislature (2025-2026) Introduced by Sally Kerans

Bill allows Massachusetts towns to locally increase meals tax rates with voter approval, creating new municipal revenue but potentially raising dining costs for residents.

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WeVote Research Nonpartisan
Bill Summary · HD 2807

Legislative bill overview

HD 2807 would authorize Massachusetts municipalities to independently increase their local meals tax above the current state rate, subject to voter approval at the local level. Currently, Massachusetts has a statewide meals tax, and this bill would grant cities and towns the ability to add an additional local tax on restaurant meals and food services.

Why is this important

This bill affects both local government budgets and consumer costs at restaurants. It would provide municipalities with a new revenue source for local services while potentially making dining out more expensive in communities that choose to implement it. The local approval requirement means communities could decide whether this tax aligns with their fiscal priorities.

Potential points of contention

  • Regressive impact: Meals taxes disproportionately burden lower-income households, as they spend a higher percentage of income on dining out and food services
  • Competitive disadvantage: Neighboring communities without the tax could attract more restaurant business, potentially harming local establishments and employment
  • Restaurant industry opposition: The hospitality sector typically opposes increased meals taxes, citing impacts on business viability and job growth

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

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