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Local restaurateurs push back as Clifton Council considers raising meals tax
Summary
At a May 5 public hearing on the FY2027 budget, Clifton restaurant owners urged the council to reconsider a proposed meals tax increase (identified in budget documents as rising from 2% to 3%), saying it could hurt margins and reduce casual customers; councilmembers said the revenue would help address a backlog of deferred capital projects.
At a public hearing May 5, Clifton restaurant owners voiced concern over a proposed increase in the town’s meals tax, which is shown in budget documents as rising from 2% to 3%.
Kevin McNamara of the Main Street Pub told the council that while he understands why the town uses a meals tax, he does not understand why it needs to be raised. “It appears that the Meals Tax will be raised from 2% to 3%,” McNamara said, adding that the tax now makes up about “60% of the Town’s revenue.” He estimated the higher tax causes a 2–5% loss in revenue from non-repeat customers and said that limits restaurants’ ability to pass along other cost increases.
Councilmember Steve Effros and Vice Mayor Jay Davis pushed back on the notion that the tax is primarily a resident burden. Effros noted longstanding projects that have been deferred for lack of funds, including a sidewalk to the post office, and Davis said the meals tax is an effective way to have visitors and tourism contribute to improvements. “Working off that backlog is going to take time,” Davis said, arguing the revenue would allow the town to advance parking, playground and streetscape work that can benefit businesses by making it easier for visitors to come and stay.
Greg Young of the Clifton Café also testified that parking shortages—particularly on weekends—are a recurring business problem and said he supports the meals tax in principle but opposes raising it without clearer evidence of local business benefit and better communication from the town.
Mayor Lynn Screen reminded attendees that the council will not vote on the budget at the May 5 meeting and that any decision on the meals tax would be taken at the June council meeting after further review and public comment. The public hearing was closed by motion and a 6–0 poll vote.
The council did not adopt any change to the tax at the May 5 meeting; council members said they plan more outreach and information before a vote in June.
