The state Division of Local Services released revenue estimates yesterday claiming local towns could benefit significantly in some cases by adopting new taxes on hotel rooms and meals.
The new law allows towns to increase the hotel excise tax from 4 percent to 6 percent and to impose an additional .75 percent tax on restaurant charges.
The state estimates Norwood could receive about $334,000 in additional revenue by adopting new local option meals tax and another $114,000 by increasing the hotel tax.
Dedham could gain $162,500 from the meals tax and another $131,000 from the hotel excise tax.
The higher meals tax would generate $288,000 in Walpole and $77,000 in Westwood. The state did not reveal estimates on a hotel and motel increase in communities with two or fewer establishments to protect the business's privacy.
The estimates are all based on the assumption that communities adopt the new taxes by Aug. 31, which will allow the Department of Revenue to start collecting the tax by Oct. 1.
The Aug. 31 deadline for adopting the new taxes likely will not be met by some towns.
Norwood selectmen Chairman Bill Plasko said he anticipates bringing up the tax proposals at the next selectmen's meeting, but said he's not sure whether the board has an appetite for the new levies.
Plasko said he needs more information, he's inclined to support the hotel and motel tax. He's less sure about the meals tax.
Even if the board is willing, Town Meeting ultimately needs to approve the measure. There likely will not be a special Town Meeting until the fall.
Dedham's next Town meeting is scheduled for November.
Norwood Selectman Helen Donohue said she also needs more information, but at this point she doesn't favor the meals tax. She is willing to consider the hotel tax.
"The reason I'm against the meals tax is that the restaurants in town employ so many people, and people are struggling to go out to eat as it is. I think this would hurt a lot of people," said Donohue.
Dedham is due to get a total of $293,827 from the new taxes, according to the division of Local Services. That is less than the $462,435 that was projected to come from the new taxes under the fiscal 2010 budget Dedham passed at Town Meeting in May.
When he unveiled his budget message in February, Town Administrator William Keegan noted "a little bit of concern about where that number may go."
Finance Director Mariellen Murphy said the estimates assume that Dedham would adopt the new taxes by Aug. 31 - but there would be a several-month delay, given the date of Town Meeting, before Dedham could actually enact the taxes.
Further, Murphy doesn't know if the estimates are accurate.
"We haven't bought into that estimate yet, but that's the only number out there at this stage," said Murphy.
Overall, Dedham's budget remains in flux. Town Meeting approved an $86.2 million budget for fiscal 2010 in May, but Keegan has said the town would likely not fully understand its budget situation until the fall.
The $86.2 million budget counted on total state aid of $7.8 million, for example - but the latest such figure for Dedham's state aid is $718,000 less than that.
Daily News staff writer Brian Falla can be reached at 781-433-8339 or at bfalla@cnc.com. Reporter Ned Colby contributed to this report.
