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Our small businesses need help with inflation too

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Our small businesses need help with inflation too

Beacon Hill lawmakers have until next Friday to set a date for the state’s annual sales tax holiday weekend.
 
If they fail to do so, the Department of Revenue will choose dates for them as part of a procedure agreed to in 2018.
?
The 6.25 percent sales tax break (on most items up to $2,500) will certainly be appreciated by consumers who’ve been hammered by record high gas prices and inflation.
 
And a weekend sales tax holiday can be a nice pick-me-up for those retailers who stand to benefit from some added foot traffic
 
But we need our legislators to do something bolder -- and soon -- to help our small businesses who are also struggling with fuel costs and inflation, as well wage increases and other pressures.
 
It’s not as if the state doesn’t have the cash to help
 
Our tax coffers are bursting. The state is expected to end this fiscal year on June 30 with a staggering $6.5 billion tax surplus. That’s on top of last year’s surplus of about $5 billion.
 
Meanwhile, the House and Senate have been sitting on a comparatively modest package of $700 million in tax cuts proposed by Gov. Charlie Baker in January.
 
Baker’s bill increased tax credits for child care and for senior citizens and increased the renter’s tax deduction and increased the minimum income level. It reduced the short-term capital gains tax rate from 12 percent to 5 percent; doubled the threshold at which the estate tax kicks in to $2 million and applies it only to value that exceeds that level, writes Chris Lisinski at State House News.
 
House and Senate leaders say they hope to present tax relief plan by July 30, although that's on top of a very long list of other things they're also racing (or at least should be racing) to consider by then.
 
"What I worry about is this: that there will be a tendency on part of the Legislature to hand-pick parts of the governor's tax proposal that help the most vulnerable, and not that that's a bad thing, but that they won't do any of the other things that better position Massachusetts for growth,” Massachusetts Taxpayers Foundation President Eileen McAnneny said this week.
 
Our small businesses need help with inflation now
 
Reforms to estate and capital gains taxes are critical to our state's long-term competitiveness, especially in an era of remote work.
 
But those -- or any other tax relief ideas Baker has proposed, or the House and the Senate may get around to -- won't kick in until a year from now.
 
That doesn't help any business coping with this.
 
And it certainly doesn't help a restaurant owner dealing with this.
 
So please, let's schedule that sales tax holiday weekend ASAP.
 
Then let's designate a two month or so period when retailers collect sales tax and our restaurants collect state meals tax, but let these business keep what they collect, rather than tossing it on top of the state's multi-billion-dollar surplus.
 
And if that tax amnesty idea can't pass muster, our small businesses need something similar.
 
 
 
 
Newton looking to regulate building energy usage
 
The City of Newton estimates that the 400 largest buildings in the city account for more than a quarter of city's total greenhouse gas emissions.
 
And now -- at the urging of the city council – the city is in the process of drafting an ordinance that would that would mandate the reduction of greenhouse gas emissions from properties over 20,000 square feet, and possibly smaller properties too.
 
Newton’s rules are expected to be modeled on the Building Emissions Reporting and Disclosure Ordinance (BERDO) adopted by Boston last year.
 
Boston’s BERDO sets a phased declining emissions requirement for existing buildings greater than 20,000 square feet and residential buildings 15 units and above. It also requires building owners to submit annual reports on their energy use and to develop and execute a plan for their buildings to reach net-zero greenhouse gas emissions by 2050, which is also the goal of Newton’s Climate Action Plan.
 
But even smaller buildings might be subject to these new rules according to a letter from Mayor Ruthanne Fuller which suggests that "multiple buildings with one owner" that total more than 20,000 square feet could also be subject to the ordinance. (An idea that just doesn't feel right to me.)
 
The administration is hosting three meetings this month to present the concept and solicit input from property owners. Register here to attend one the following virtual meetings:
 
  • Fri., June 17, 8 a.m.
  • Thurs., June 23, 8 a.m.
  • Weds, June 29,10:00 a.m.
 
Watertown is also said to be considering adopting BERDO-type regulations as part of its climate action plan.
 
And you can view a program the chamber hosted recently on this topic here.
 
Premium pay required on Juneteenth
 
Monday, June 20 is a legal state and federal holiday honoring Juneteenth, commemorating the end of slavery in the United States. 
 
On June 20 all work performed at retail must be compensated at 1.1 times an employee’s regular hourly wage under the state's Blue Laws.
 
In addition, all work on the 20th must remain voluntary, and refusal to work may not be grounds for discrimination, dismissal, discharge, reduction in hours, or any other penalty. 
 
Thanks to Retailers Association of Mass for this reminder and also creating this Retail Holiday Schedule which also outlines some exemptions.
 
Need to goes
 
  • The 128 Business Council is partnering with the American Diabetes Association on an Executive Leaders Breakfast, Thursday (June 16) at SBLI in Woburn. It combines networking with an opportunity learn about the cost of diabetes in the workplace and the community, and how the ADA can work with you to make a difference.
 
  • Newton’s Baramor is hosting the official GOLF.COM Experience Party for the U.S. Open from 4 to 10 p.m. next Tuesday and Wednesday. The free two-day event should satisfy all your golf-watching needs with coverage of the tournament, live in-house recordings of GOLF’s most popular, more than $2,500 in giveaways, a chance to test out TaylorMade’s latest gear on a simulator at the restaurant and an inventive happy hour with Dewar’s beverages via golf cart on Baramor’s patio. Details
 
Join the chamber
 
 
Watertown Square proposal reshapes Main Street
 
Developer John O’Connor tells the Watertown News that he envisions his proposed 104-126 Main St enhancing the walkability of Watertown Square.
 
“We think the project we will be delivering is going to be a lot more authentic and more walkable for tenants — they can walk to the bus station or walk to the restaurants in town, or walk to the various employers in town,” O’Connor said.
 
The development includes 46 residential units in four stories above 5,450 sq. ft. of retail/office space on the ground floor.
 
But the project isn’t without opposition.
 
Some residents are petitioning to block the effort by designating a stretch of Main Street a Historic District.
 
And the new owners of the Crown Café (a chamber member) on Main Street previously told the News that they’re concerned about being displaced, just months after investing tens-of-thousands of dollars into their business. 
 
Finally, some mind-boggling real estate numbers
 
Beth Teitell’s story in the Globe about the real estate bidding wars happening in our suburban communities is mind-boggling.
 
We’re talking about a house in Needham that closed $655,000 over asking price.
 
There's also a Chestnut Hill home that went for $806,000 above asking, a Wellesley property that went for $850,000 over the listed price.
 
And one Newton home sold for nearly $1 million over asking.
 
“On the one hand we’ve got people who are struggling to make rent on a place that’s safe and cheerful for their family, and close enough to work that they don’t need to spend hours commuting,” writes Teitell. “Others are so flush that their ‘over asks’ are more than the price of many entire homes.”
 
Hard to believe? Watch this.
 
 
That’s Need to Knows for today, unless you need someone to explain to you why our headline are green again today, something I look forward to doing two more times.
 
 
Be back tomorrow.
 
Greg Reibman (he, him)
President
Charles River Regional Chamber
617.244.1688
 
P.S. Our thanks to everyone who provided great feedback and suggestions for our "Take a Trip Up the Charles" campaign. Really appreciate it. Watch your inbox soon for suggested ways you can help us in our shared goal of supporting our local businesses and cultural institutions.
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