To the editor:
We would like to share with you our feelings after reading about the possible closing of Salem's Horace Mann Laboratory School.
We think if this comes to fruition, it will be appalling. We currently have three grandchildren attending this wonderful school, and a fourth one to follow soon. We believe they are getting an excellent education, unparalleled in the city. To quote the superintendent, "It would save the district about $500,000 to close Horace Mann." But the closing of Horace Mann brings with it many additional problems for the schools; it is not a panacea.
It seems to us there is an obvious solution to this problem, which is in danger of being dismissed for no apparent good reason. We strongly support the increase in the local-option room occupancy tax and meals tax, which is projected to bring in an additional $900,000 per year. As owners of one of the three largest hospitality properties in Salem, we do not feel that this in any way would harm our business. It is not Salem residents, or us, as owners, who pay this occupancy tax; it is our out-of-town visitors who, indeed, pay the tax.
This will not be a unique tax to Salem. Many of the surrounding cities and towns have already adopted it. The Massachusetts tax will still be lower than many other states', and in many of those cases the local communities do not share in any of the revenue. In Boston, the occupancy tax is now 12.45 percent. The New York City tax on a hotel room is 20.25 percent. The Rhode Island state rooms tax is 13 percent, with nothing going to the city that collects the tax.
The argument has been made that an increase in rooms tax will drive business to neighboring New Hampshire, whose rooms tax is 9 percent. It seems that we should have lost business to New Hampshire long ago with this reasoning. It has not happened.
People come to Salem because they want to be in Salem. Also, the claim that adding .75 percent to the current meals tax, which is 75 cents on a $100 meal, is specious. Instead of the current total bill of $106.25, it will result in a bill of $107.00. Do you really think this will stop anyone from dining out?
In fact, it has already been reported in The Salem News that the surrounding towns that have implemented this increased tax are receiving tax revenues greater than projected. Obviously, diners are not concerned about the extra .75 percent.
We are speaking not only as business owners, but also as Salem residents. We care deeply about the city and preserving its quality school system.
It should be noted that the vast majority of owners in Salem's tourism industry, be it owners of restaurants, hotels or attractions, do not live in Salem. We believe they have no vested interest in the school system, but we do. We feel that city councilors are not acting in the best interest of their constituency — Salem residents — when they base their voting decisions on the arguments of non-residents.
We strongly encourage all councilors to support this increased tax for the sake of all of our children and grandchildren.
Dick and Diane Pabich
Owners, The Salem Inn
Salem
