Proposed Alcohol Tax in Massachusetts Aims to Fund addiction Services, Faces restaurant Industry Concerns
A bill currently under consideration in the Massachusetts State Legislature could allow cities and towns to levy a 2% local excise tax on alcohol sales, dedicating the revenue to local addiction prevention and recovery programs. Sponsored by State Senator Cynthia Creem of Newton, the proposal is backed by the Massachusetts Municipal Association.
The bill would function by having the state collect the tax from bars,restaurants,and liquor stores,then redistribute the funds to municipalities that opt into the program. Senator Creem highlighted that several other states already utilize similar alcohol-related revenue streams to bolster substance use treatment and prevention efforts, offering communities a flexible funding source tailored to their specific needs. Potential uses of the funds include youth prevention education, access to overdose-reversal tools like Narcan and fentanyl test strips, and expanded counseling and treatment services.
However, the Massachusetts Restaurant Association has voiced opposition to the proposed tax. Jessica Moore, the association’s director of government affairs, expressed concern over the added financial burden on both restaurants and customers. She noted that the 2% tax would not only be paid by consumers but would also incur credit card processing fees for restaurateurs, further increasing costs.
Moore argued that Massachusetts already presents the highest dining costs in the Northeast and pointed to recent data showing a slower growth in meals tax collection ($625 million currently, compared to $611 million last year) than the rate of inflation. She also raised logistical challenges, stating that manny restaurant point-of-sale systems are not equipped to separately track alcohol sales. Implementing the tax would require costly technology updates. She fears the tax could drive customers to neighboring towns without the levy, impacting businesses, especially self-reliant restaurants.
In Newton, State Representative Amy Sangiolo indicated that additional funding could be used to launch or expand programs addressing substance abuse disorders. She anticipates the city’s health commissioner and advisory board will engage with the community to identify the most impactful program investments.
Newton residents seeking addiction support and recovery resources can find facts on the city’s Health and Human services Department website: https://www.newtonma.gov/government/health-human-services/social-services/substance-use-resources/recovery-support or by calling the Massachusetts Substance Use Helpline at 800-327-5050.
This story was produced through a partnership between the Newton Beacon and the Boston University Statehouse Program.
