Saugus selectmen split on proposed meal tax

SAUGUS – Selectmen split decisively and Tuesday on the issue of a potential meal tax.
Selectman Michael Kelleher asked his colleagues to join him in sending a letter to Gov. Deval Patrick, Speaker of the House Salvatore DiMasi and the state delegation in support of allowing communities to implement a 1 percent meal tax. The idea is that additional revenue would come directly back to the cities and towns.
Selectmen Peter Rossetti and Stephen Castinetti balked at the idea of asking one segment of the business population to bear the brunt of possible tax cut.
State officials have indicated communities will be hit with a 10 percent cut in state aid in 2009, which is about $1 million for Saugus. Kelleher argued that based on last year’s figures the town stood to gain $760,000 in revenue from the implementation of a 1 percent meals tax.
Rossetti said he might consider the proposal if it were statewide but that isn’t likely to happen. As it stands now the debate on the state level is aimed at giving communities the option to adopt the meal tax.
Kelleher called it a no-brainer and wondered how anyone could vote against $760,000 in revenue. He called the 1 percent negligible though his colleagues disagreed strongly.
“I can’t imagine a family would go out to dinner and spend $34 but wouldn’t go out because of 34 cents,” Kelleher said.
“I agree we’re in tough times but when did it become the responsibility of the restaurant establishment to bear the brunt of the tax cut?” asked Castinetti.
He also argued that while the tax might indeed be negligible the perception of a new tax is even costlier in that it could push customers away.
When Kelleher suggested that non-passage of the initiative could lead to cuts in police, fire and the School Department, he drew fire from Castinetti.
“You can frame this anyway you want but you can’t be farther from the truth or more misleading,” he shot back.
Castinetti said he was appalled that Kelleher would tie saving lives to a meal tax that he thought unfairly targeted one segment of industry.
When the debate on the issue broke out Chairman Donald Wong, who owns Kowloon Restaurant with his family, immediately relinquished the gavel to Castinetti and stepped down. He did, however, voice his opinion from the podium, speaking as a resident and business owner.
First Wong said he wondered why the board was even discussing the issue when it had yet to reach the floor of the State House. He quickly said he would be against the implementation of any meal tax because it would push customers into other communities.
Selectman Stephen Horlick said he would be willing to look at the issue because he believes everything should be on the table.
The motion to send the letter failed when the vote tied at two.