Boston's Hotel Tax Hike

I wrote about this story in my Roundup, but it deserves a takeout simply because it’s going to be a trend in the coming year. Boston’s mayor wants to hike both hotel and restaurant taxes (called meal taxes) to help with the city’s loss of revenue. It’s a move that has been growing in many cities across the country.

The proposal will go before the city council next week. There was surprisingly little opposition to the proposal, even by hoteliers.

“The mayor has to do what the mayor has to do to cover some of the expenses of the city, and we just hope that when things get better, he takes a look at them again and rolls them back,” Paul Jacques, general manager of the Boston Harbor Hotel told the Globe.

I have to say that Jacques is being very civilized, especially in an era of hotel foreclosures and dwindling hotel occupancy. My understanding is that the increased taxes will be paid by the consumer rather than the business, so perhaps that’s the reason for the laissez-faire attitude. Either way, the higher costs for a hotel room or meal will not endear hotels or restaurants to families looking to save money — and I’m not sure how much money will be raised in a climate where hotel occupancy is the lowest in 20 years.