Leominster proposes local meals tax to help fund new school project

LEOMINSTER — Leominster officials are proposing a local option meals excise tax to help reduce the financial burden of the Fall Brook Elementary School project. A similar measure was recently approved in Fitchburg, and city officials are inviting residents to an informational meeting on Monday, March 10, to discuss the details.

If enacted, the tax would add 0.75% to the cost of restaurant meals, generating an estimated $800,000 to $1,400,000 annually, according to the Massachusetts Department of Revenue. Mayor Dean Mazzarella emphasized that the funds would be dedicated to lowering the overall cost of the school project and reducing debt service over the course of its financing, ultimately easing the burden on taxpayers.

“The sole purpose of this revenue stream is to support our community’s investment in the Fall Brook Elementary School project,” Mazzarella stated in a letter to the City Council.

Under Massachusetts law, meals taxes apply to prepared foods sold for immediate consumption but do not affect groceries or other non-prepared items. If enacted, the additional 0.75% tax would be applied on top of the state’s existing 6.25% sales tax on meals, bringing the total tax rate on restaurant meals in Leominster to 7%.

For the proposal to take effect, the City Council must approve it by a majority vote. If passed, the city clerk must notify the Department of Revenue within 48 hours, after which the tax would be collected along with the state’s meals tax.

City Council member David R. Cormier voiced support for the measure, calling it a necessary step to fund local infrastructure.

“This tax will provide a vital revenue stream for our community, enabling us to support important initiatives like the Fall Brook Elementary School project,” Cormier said.

Fitchburg recently approved a similar meals tax, passing the measure in a 7-4 vote on March 4.

Monday’s meeting will give residents an opportunity to ask questions and better understand the impact of the proposed tax. For more information, contact Mayor Dean Mazzarella’s office at (978) 534-7500.