Meals, Hotel Tax Increases Go Into Effect

As of October 1 it will cost more to stay and eat in Medford.

The City Council, at the request of Mayor Michael McGlynn, recently approved a meals tax and hotel tax increase in an effort to boost revenue for the city.

The meals tax is a new, 0.75% local tax that will show up on diners’ bills in every Medford restaurant. The new tax represents 75 cents on a bill of $100, for example.

According to Mayor McGlynn, the tax is estimated to bring in close to $100,000 in one year.

In a meeting on August 18 the Council approved a a 2% hotel/lodging tax increase. The 2% bump increases the city’s share of hotel taxes to 6%. Previously, Medford was collecting a 4% tax from its only hotel, Hyatt Place.

According to Mayor McGlynn, the hotel tax increase is expected to bring in an additional $233,000 over the next year.

Both taxes are in effect for one year and the Council will review them again at the end of the fiscal year in June 2010.

The hotel and meals taxes are optional measures the state legislature put into place to help communities raise additional revenue without increasing property taxes during tough fiscal times. It is up to individual communities to determine to adopt the taxes.

– InsideMedford.com