by By Michael J. Shapiro | September 02, 2009

The Boston and Cambridge, Mass., city councils voted last Wednesday to increase both cities' hotel tax by two percentage points, from 12.45 percent to 14.45 percent. The meals tax will increase by 0.75 percent, to 7 percent. The increases will go into effect Oct. 1. The Massachusetts state budget permits cities and towns to adopt a local option meals tax of up to 0.75 percent and a hotel tax of up to 2.5 percent.