February 21 , 2007

Hungry for local tax relief

By Christopher Loh/Staff Writer
Newton Tab

While some in Newton are crying foul over Governor Deval Patrick’s proposed meals tax, others support it, especially in the tough fiscal times the Garden City has found itself in.

Before the governor’s proposal has any weight, it first has to be approved by the state legislature, and even then would only be an option at the town and city level.

The governor’s office said the tax that could be up to 2-percent and, if passed and implemented, it will help communities provide property tax relief for senior citizens and a way to work around the constraints of Proposition 2 1/2.

“This is an almost painless proposal that is really applied to the user,” said Mike Striar, who ran against Mayor David Cohen in 2005 with a voluntary sales tax as a part of his platform. “[Newton] should be out ahead of the curve. This should have been something Mayor Cohen and the aldermen should have been strongly advocating for years.”

“We support Governor Patrick’s municipal relief package in its entirety,” said Jeremy Solomon, Cohen’s spokesperson. “We’re relieved and grateful that we have a governor for the first time in 16 years that understands the fiscal constraints that our cities and towns are operating under.”

Newton state Rep. Ruth Balser said she is in favor of the meals tax and has been for years.

Balser said it is important for people to understand that the governor’s plan sets nothing in stone, and that all tax increases would be approved at the municipal level.

“It’s a series of measures to give municipalities [the ability] to raise revenue themselves,” said Balser, adding that state aid to cities and towns is decreasing.

Fellow Newton state Rep. Peter Koutoujian said that while he has not yet made a firm decision, for now, he is leaning toward supporting the governor’s package.

His decision will be final when he hears the opposition’s argument.

“I’m very open-minded about this,” said Koutoujian. “[The package] could allow flexibility and little bit more local aid to be kept locally. There are some cities and towns that do not have any base that could benefit from these options.”

But while there seems to be overall support for the package, Curt O’Hara, owner of Newton’s O’Hara’s and Paddy’s Restaurant, took issue with the measure.

“I think it’s terrible,” said O’Hara flatly. “I thought [Patrick] promised no new taxes.”

O’Hara said he is sure the tax, if imposed, will discourage people from eating out, especially young families.

“For a guy who just got into office [Patrick] sure as hell is running wild over everybody,” said O’Hara. “Put yourself in the position of a waiter or waitress whose tips are cut down.”

But Striar said that while the argument is valid, it doesn’t hold in the end.

“People are going to restaurants in Newton because they live in Newton,” Striar said. “People won’t even recognize the meals tax. When we get the property tax bill, people know exactly what that is.”

And that, for Striar, is the bigger picture.

“This is a far superior way to raise revenue for Newton rather than the property tax, which has wiped out seniors and moderate-income families in Newton,” he said.

The meals tax that could be up to 2-percent on any meal eaten in a restaurant is part of the Municipal Partnership Package that Patrick and Lt. Gov. Tim Murray filed last Thursday as a way of working with the commonwealth’s 351 individual municipalities on strengthening the state.

Other provisions include addressing rising health-care costs; pension reform; and the re-examination of the Home Rule Charter to allow communities more freedom to grow their local economies.

“All owners will fight this tooth and nail, and I don’t blame them because if I were in that business, I would do the same,” said Striar.

O’Hara said he won’t wait for the fight to come to his doorstep. He’s campaigning against the proposal right now, although he wouldn’t say how.

Balser said the package has a long “hard road” ahead of it to get passed, and said that it is only picking up steam due to Patrick’s support of it.

“Now we have a governor who wants to give a range of options to municipalities,” said Balser.