I have selected portions of an article which appears in its entirety here: http://tinyurl.com/yducxw9
Check out these important spreadsheets for understanding meals tax data.
Projection for expected meals tax revenue by municipality: http://tinyurl.com/mealstax
Actual meals tax revenue for FY10 Q2 for early adopters: http://tinyurl.com/mealstaxrevenue
Lisa Juszkiewicz, Director of the Municipal Databank
Of the communities who initially adopted the local option meals excise, the City of Boston is the largest by population (and likely by relevant dining establishments). Of the approximately $2.7 million collected in October, $1,493,154.22 million came from and went back to Boston.
The City of Cambridge had the second highest meals revenue collections in October with $256,811.97. Worcester, our second largest city by population, came in with the third highest collections ($152,737.62) in October and the City of Springfield followed in fourth ($113,323.74). Of the 30 initial communities, the small, western Massachusetts Town of Sunderland collected the least at $2,640.08.
That said, even in small communities, collections may amount to noteworthy new monthly revenue. Cities like Taunton, Northampton, and Somerville ranged from $42,138.59 to $45,874.59 to $60,854.69. The new local option excise of .75 percent on the sale of restaurant meals originating within the municipality was created within the FY2010 state budget.
To implement the new local option excise the municipality must accept MGL Ch 64L, section 2(a) by a majority vote of the local legislative body, subject to local charter. For the local option excise to be effective October 1 a municipality needed to vote to accept the local option by August 31. As mentioned above, 30 municipalities accepted by the August 31 deadline and they received their first distribution on December 31. The December distribution was based on revenues generated on the sale of restaurant meals in October and reported to the Department of Revenue in November. The next deadline for accepting the local option excise was December 1 with an effective date of January 1. Thirty-six municipalities adopted the local option to become effective January 1. These 36 municipalities will receive their first distribution on March 31 based on revenue generated in January and reported to the Department in February.
To date, four additional municipalities have accepted the local option, three with effective dates of April 1 and one effective July 1 bringing the total to 70 municipalities (or approximately 20 percent of cities and towns) within the local options’ first six months.
