A proposed bill on Beacon Hill sponsored by Newton’s state senator would give Massachusetts cities and towns the option to increase taxes on alcohol sales to fund local addiction prevention and recovery programs. But restaurant owners say the change could raise costs and hurt businesses.

The bill, sponsored by Sen. Cynthia Creem, would allow a 2% local excise tax on alcohol sold in bars, restaurants and liquor stores. The state would collect the tax and return the revenue to participating municipalities to spend on local programs.

Creem is sponsoring the bill on behalf of the Massachusetts Municipal Association, a nonprofit that works with city and town officials on advocacy and to develop policy.

In an interview, Creem said several states already use alcohol-related revenues to support prevention and treatment programs, calling the proposal a flexible tool for communities to invest in the programs they need most.

“For some municipalities, this could mean investing in youth prevention education, funding overdose-prevention tools like test strips and Narcan, supporting counseling or treatment services,” said Creem.

“The intent is to give cities and towns the ability to respond to the specific substance use issues they see in their communities.”

Jessica Moore, director of government affairs for the Massachusetts Restaurant Association, said in an interview she hopes the bill does not pass because of the added costs for restaurateurs and guests. She said most diners today use credit cards in restaurants, which already have processing fees on each swipe that factors in tax and tip.

“That 2% increase is not just 2% that the customer is paying and the restaurateur is remitting to the state—the restaurateur is also paying a fee on that swipe,” said Moore.

Moore said Massachusetts is already the most expensive state in the Northeast to dine out in, and that younger generations are drinking less than previous ones.

“People are going out less,” said Moore. “The most recent Blue Book published by the Department of Revenue shows we’re at about $625 million in meals tax collection, and at this time last year, we were at $611 million. That’s not keeping up with the rate of inflation.”

Logistically, Moore said restaurants would need to update their technology because most of their point-of-sale systems do not separate alcohol from other charges.

“You’re asking a company to do more work—there’s more cost involved in that. Everything adds up,” said Moore.

She emphasized that local taxes could worsen affordability and put pressure on independent restaurants in cities like Newton.

“If you’re a community that has chosen to adopt a local option tax like this, and the community next to you hasn’t, folks may choose to walk across the street to the town right over there that isn’t charging that tax,” said Moore.

In Newton, Democratic Rep. Amy Sangiolo said in an interview that the biggest local opportunity would be to launch or expand programs that address substance abuse disorders.

She said she expects the city’s health commissioner and health advisory board to conduct outreach to the youth, senior and general population to determine what programs could be adopted or developed with additional funding.

Newton residents seeking support for addiction or substance use recovery can find resources on the city’s Health and Human Services Department website or call the Massachusetts Substance Use Helpline at 800-327-5050.

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This story is part of a partnership between the Newton Beacon and the Boston University Statehouse Program.