The City of Medford's move to instate a local meals tax has in the past seven months raised double the expected revenue, although local businesses say that they have not been significantly impacted.
The state legislature last summer granted local communities the authority to impose a 0.75 percent local meals tax as part of the Massachusetts Municipal Association's work to provide cities and towns with options to vary their income sources. The legislature also approved increasing the state meals tax from 5 to 6.25 percent.
Medford joined a minority of cities in the state in implementing the tax in October after the city council approved the measure at the request of Mayor Michael McGlynn.
Only one in five cities in the state chose to instate the tax. Some communities opted not to adopt the tax for fear of hurting local restaurants, and the Massachusetts Restaurant Association has consistently opposed the legislation.
Revenue earned from the tax has far surpassed the Massachusetts Department of Revenue's estimates. The department estimated that Boston would raise approximately $1.4 million per month from the tax, but the city in October amassed $1.5 million. Medford brought in $42,760, double the original projection.
Medford restaurant owners, however, say they have not seen any significant decline in business despite this huge windfall for the city.
Marlena Najar, general manager of Bertucci's Italian Restaurant in Medford, does not think the tax has adversely impacted the restaurant or consumers.
"It definitely has not in any way negatively affected our business," she said. "Only on very rare occasions do people even question the tax. On the receipt, tax is broken up as state tax and local tax and very infrequently is there even a question about it."
John Kermanidis, manager of Nick's House of Pizza located on Boston Avenue near Dowling Hall, has similarly not seen any decline in sales.
"As far as negatively impacting business, I don't think the tax has had any effect," he said. "There were no adverse affects as far as business is concerned. It's no big deal as far as I'm concerned."
Kermanidis said that some of his customers inquired about the tax, but after he told them about the city-mandated tax increase, there were no negative repercussions.
"Initially, some people who are regulars questioned the tax and I explained it," he said. "As long as you initially explain yourself, people don't have a problem with it."
Most students have not noticed an impact or changed their behavior due to the tax; some were even unaware about the new tax.
Sophomore Milas Bowman did not know about the meals tax and was not opposed to it after learning about it.
"I guess it hasn't really affected me because I didn't know it existed," he said. "I think it's fine, I'm not strongly opinionated about it."
Hilary Ross, a sophomore, felt similarly. She had not heard of the tax before but expressed her support for the measure after learning about it.
"I didn't know that there was an increase in the meals tax, so I didn't change my habits in any way," she said.
Ross explained that the tax would not affect her behavior because she valued convenience and supporting local businesses.
"I don't think the tax will change my habits," she said. "That's not a very high tax and because Medford is closer to [Wren Hall] than [Davis Square], convenience will probably win out ... Also, taxes go back to the community so I don't feel bad about paying them."
Kermanidis thinks that businesses have not been hurt by the imposition of the meals tax because Massachusetts residents are so accustomed to paying taxes.
"People in Massachusetts are used to it," he said. "That's why they call it ‘Taxachusetts.'"
