Beginning July 1, Marblehead will institute two new taxes — a .75% local meals tax and a 6% rooms occupancy tax — after Town Meeting voters approved them Monday night.
Both new measures passed by healthy margins. Town Meeting also rejected a motion, by Harbor Light Inn owner Carolyn Pyburn, to lower the room tax from 6% to 4%.
“Everyone around us has already adopted this,” Town Administrator Thatcher Kezer told Town Meeting. “Would this put us at a competitive disadvantage? We decided it would not — we would just be on par with the rest of the region.”
(*Read more about the first night of Town Meeting, the approved budget and a union rally HERE.*)
Kezer proposed the new taxes to bolster Marblehead’s budget without asking voters for a property tax override. He estimated the taxes will generate $400,000 a year, with potential future earnings reaching $1 million a year.
“We are trying to generate revenue that have the least impact on property taxes,” said Kezer. “Marblehead has a single tax rate across the board. This is a balanced approach. This is a reasonable approach.”
Resident Albert Jordan spoke in favor of the new taxes.
“We missed the boat on this. We should have done this a long time ago,” he said.
Local business owners, particularly those in the hospitality sector, have had mixed reactions to the new taxes. While some expressed concerns about the impact on competitiveness, others acknowledged the necessity of the measure.
Former School Committee member Jonathan Lederman spoke against the taxes.
“Why are we doing this? Because we can? Because other towns are doing it? Or because management in this town can’t get its fiscal house in order?” he asked.
Lederman accused the town of “nickel and diming” residents.
Resident Peter Conway, former owner of Harbor Light Inn, argued the room tax is “putting the cart before the horse.”
“Those (communities) who have implemented the tax have committees that have created rules and regulations first,” he said. “Not second.”
Kezer said the town would work closely with local businesses to ensure a smooth transition and address any concerns that may arise.
Leigh Blander contributed reporting to this article.
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[…] (*Town Meeting also approved new meals and rooms taxes that will take effect in July. Read more here.…) […]