Wednesday, April 15, 2009

MassGOP Research Briefing

On Tax Day: A List Of Taxes Proposed By Governor Patrick

Gas Tax
Increase by .19 cents to make it the highest in the nation.

Meals tax
Increase the statewide meals tax by 1 percentage point, to 6 percent, which would raise $125 million for next fiscal year. Also give municipalities the option to raise the tax by an additional 1 percentage point, to 7 percent.

Hotel tax
Increase the statewide hotel tax by 1 percentage point, to 6.75 percent, which would raise $24 million next fiscal year. Also give municipalities the option to raise the tax by an additional 1 percentage point, to 7.75 percent.

Alcohol, soda, and candy tax
Eliminate a tax exemption on sales of alcohol, soda, and candy. Currently food sold outside of restaurants is exempt from the state's 5 percent sales tax; the governor wants to eliminate that exemption for certain items. For next fiscal year, the move would raise $150 million, $121.5 million of which would go to state coffers and $28.5 million to a fund used to build public schools. The proposal would have raised $24 million this year if the Legislature had implemented it by April 1.

RMV fees
Increase a variety of fees that residents pay when they go to the Registry of Motor Vehicles. All told, $74.5 million would be raised for during the next fiscal year. It would have raised $18 million this year, if the Legislature had implemented it by April 1.

Telecommunication tax
Eliminate a tax exemption for telecommunications companies, which would raise about $52 million.

Bottle deposit fees
The state's 5-cents -per-container charge on carbonated sodas, beer, and malt beverages would be expanded to also include noncarbonated beverages like sports drinks, water, and juices. It would raise $20 million in state revenue for next fiscal year.

Source: Boston Globe, 4/15/09; Published Reports