AGAWAM – The Agawam City Council has voted to establish a Local Options Meals Tax in the town of Agawam. The state of Massachusetts charges a sales tax on meals sold through restaurants of 6.25 percent. The tax is also assessed on parts of stores that are considered restaurants under Massachusetts law. For example, some prepared food items in grocery stores are included in this tax. The establishment of the Local Options Meals Tax will increase the amount from 6.25 percent to 7 percent for the town of Agawam. Revenue from the increased tax will go directly to the town.

Before voting, Councilor Dino Mercadante said, “I’m in favor of this resolution and, as most of you know, I own a restaurant in town. The three quarters of one percent is so nominal that it really isn’t an effectual tax. First of all, it’s more like a user fee because, quite frankly, what happens is it’s not like a real estate tax that everybody’s got to pay. It is a tax if you want to go out.”

Councilor Mercadante continued, “I think what we have to understand is that if we eat local, we will promote our own businesses. And that money stays right here in Agawam.”

Councilor Robert Magovern also spoke in favor of the tax. “I’m in favor of this user fee. I’m fiscally conservative. I am against taxes and I see that by going and raising this three quarters of one percent, it eliminates a half a million dollars that will have to be raised in other means of general taxes to the population. The only town in the area that does not have a 7 percent meals tax is Southwick. The majority of this money will be raised through Six Flags and the people going there. I feel that it’s the best way to raise a half a million dollars that will keep our taxes reduced a little bit. It’s not a big amount and I am totally 100 percent in favor of this user fee,” Councilor Magovern said.

Councilor Anthony Suffriti, who sponsored the resolution, said, “None of us are in favor of ever wanting to raise taxes on the people of this community. I didn’t sponsor this because everybody else around us is doing it and we’re not. We’re not like that. This town isn’t ‘because everyone else is doing it, we’re going to do it.’ I sponsored this because, as you know, the needs of this town continue to grow and the burden is falling on the homeowners and property owners in this town. This tax will be the only tax that’s not 100 percent on the backs of those people; the people that own property in this town.”

Councilor Suffriti continued, “Anybody that comes in [and] visitors that come in will pay that small little three quarters of one percent that will turn into big revenue at the end of the year that will help offset some of the costs that we’re going to see increase over the years for infrastructure, storm water, whatever it may be.”

Councilor Cecilia Calabrese, vice president of the City Council, voted against the resolution. “It’s the institution of a new tax and we’re got enough taxes that are flying around this town already. I’m also hearing two different arguments in support of this. One says, ‘oh, it’s so nominal, nobody’s going to notice.’ The other says ‘it’s going to give us much needed revenue.’ Let me tell you what that $500,000 of revenue represents on a $96 million budget: .0052 percent of that budget,” Councilor Calabrese said.

Councilor Calabrese continued, “I feel for some of the senior citizens. It may be [that] their big night out is to go out maybe down to the Parthenon or the Take 5 and have a nice dinner and they may think twice about going out at all. I’m not suggesting they’re going to drive to Southwick to avoid the tax. I don’t think that’s the situation at all. I think their one pleasure that they may be enjoying, they’re going to have to cut back on.”

Councilor Robert Rossi said, “It’s kind of like throwing money away if you don’t do it. It’s a savings plan, if you will. I don’t see where people are going to be overburdened by this whole thing. It does give the town the opportunity to get a little bit of revenue back. I don’t really see it like a real inconvenience kind of a thing.”

City Council president Christopher Johnson shared, “I look at it from the perspective that I am a fiscal conservative. I’ve never liked the concept of raising any tax. But to me, it’s a choice. The choice is we have the ability by adopting this local option meals tax, a tax that’s not going to be paid by the businesses in town, it’s going to be paid by the patrons who go to restaurants in Agawam.”

Councilor Johnson continued, “It’s a choice. The choice is, do we want to continue to raise our real estate taxes in order to fund the vital services we have in Agawam or do we want to look for other revenue sources that won’t come entirely from those people paying real estate taxes, whether it be businesses or residents?”

Councilor George Bitzas said, “It is hard to ask the people to pay but this situation is a little bit different because so many people come from out of state, especially during the season for Six Flags. They’re using our streets. They leave the money here and it is those who pay the .75 percent. It’s those people who go out and eat.”

Councilor Paul Cavallo spoke in favor of the resolution. “How many people would really object to that small increase of three quarters of a penny added to your bill? I find that hard to believe. People can opt out. If they feel that tax is offensive, then you don’t have to go out to eat. But most people do,” Cavallo said.

The City Council voted 8-2 to change the effective date of the resolution to Oct. 1. Massachusetts state law makes the effective date 30 days from passage unless amended. The resolution passed with a vote of 8-2.

To view the full meeting, visit vimeo.com/Agawam.