Hopkinton directs local meals tax money toward economic development

Hopkinton must put its local meals tax revenue into a separate fund for economic development. The money must support economic development in Hopkinton, including business support, infrastructure improvements, and related administration. Spending requires a majority vote of town meeting. Interest earned by the fund goes to the town’s general fund. Payments from the Local Aid Fund are unaffected. The revenue rule applies each fiscal year beginning on or after July 1, 2026. The law took effect August 21, 2026.

Town meeting may end the economic development fund by a two-thirds vote. The transfer covers money neither spent nor committed as of the direct repeal vote or, when the meals tax is ended, as of the meals tax vote. Direct repeal also sends future local meals tax revenue to the town’s general fund. If town meeting ends the meals tax by majority vote, it must separately decide by a two-thirds vote whether to end the fund. Without two-thirds approval, the fund continues, and spending still requires majority approval. Direct repeal transfers the money immediately. If the fund ends following a meals tax repeal, the transfer occurs on the first day of the calendar quarter following 30 days after the meals tax vote.

Hopkinton’s treasurer must provide the town with an annual financial report and publicly post it. The reporting duty continues for as long as the economic development fund exists. The report must show revenue, receipts, grant amounts, loan amounts and recipients, and the balance at the end of each fiscal year. The report must be publicly posted on or before October 1 each year.