T
he Cape Cod Chamber of Commerce has long championed the idea that a strong economy depends on a fair, balanced partnership between the public and private sectors. That’s why we’re voicing our opposition to provisions in the Governor’s proposed Municipal Empowerment Act that would allow cities and towns to impose new local meals, rooms, and excise taxes.
On Cape Cod, our hospitality industry already carries an extraordinary tax burden. In addition to the state’s existing meals and rooms taxes, we have a 2.75% special excise tax on hotels, motels, and short-term rentals dedicated to municipal wastewater projects. This is on top of the more than $1 billion per year that Cape Cod’s 15 towns collectively spend on local government.
The problem isn’t that these needs aren’t important—they are. The problem is that we cannot keep taxing the very industry that fuels our economy, especially when the state continues to underinvest in travel and tourism. For years, Massachusetts has lagged behind competitor states in tourism marketing budgets, even as our communities rely heavily on visitors to support small businesses, generate tax revenue, and sustain jobs.
Adding new taxes on lodging and dining without reinvesting in the visitor economy is like taking out a home equity loan and not putting the money back into the house. Over time, you’re draining value instead of building it. The more we weaken our ability to attract visitors, the more we undermine the very tax base these proposals aim to grow.
Cape Cod’s hospitality industry is not a limitless ATM. We need the Commonwealth to invest in tourism the way we invest in our infrastructure—strategically, consistently, and with a clear return in mind. Our state’s tourism marketing budget is not a “nice to have”; it’s the fuel that drives billions in visitor spending, supports thousands of jobs, and generates hundreds of millions in tax revenue for both the state and local governments.
As the Legislature considers the Municipal Empowerment Act, we urge our lawmakers to recognize that economic health requires balance. We can’t keep adding taxes to the sectors that make Cape Cod thrive without also strengthening the tools that keep them competitive.
—Paul Niedzwiecki
CEO, Cape Cod Chamber of Commerce