Rep. Joseph J. Solomon Jr. (D-Dist. 22, Warwick) has announced that he will pre-file legislation to establish a sales tax holiday for the weekend of Aug. 6-7, 2016.
The tax holiday, designed to …
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Rep. Joseph J. Solomon Jr. (D-Dist. 22, Warwick) has announced that he will pre-file legislation to establish a sales tax holiday for the weekend of Aug. 6-7, 2016.
The tax holiday, designed to give local business an economic boost, means no excise or sales taxes would be collected on sales of tangible personal property.
“It’s time that we give something back to the people of Rhode Island,” Solomon said in a statement. “A Rhode Island tax holiday would attract many to the state, and the loss in tax revenue would be made up by the money those people would spend in places such as restaurants, which would not be tax exempt.”
Solomon’s bill, which he plans to introduce on the first day of session Jan. 5, would exempt items below $2,500 from the state’s 7-percent sales tax. The holiday would not apply to sales of telecommunications, tobacco products, gas, steam, oil, electricity, motor vehicles or motorboats.
“Massachusetts has hosted a sales tax holiday for years,” said Solomon. “I’m tired of seeing people leave the state to purchase goods in Massachusetts. I want to see people from other states coming here to make their retail purchases. This is a perfect concept for a small state like Rhode Island where two separate states are within a short driving distance.”
Several states currently have sales tax holidays. Most jurisdictions use the holiday to exempt clothing and back-to-school supplies from sales tax. Since clothing is already sales tax-exempt in Rhode Island, Solomon’s legislation would be modeled on the Massachusetts tax holiday, which currently exempts all taxable items below $2,500.
“A sales tax holiday can provide a well needed break for people to buy some necessities,” Representative Solomon said. “And it benefits business people by sparking economic activity. We all know that Rhode Island is a difficult place for small business. We’ve committed ourselves to doing what we can for small business owners. The loss of a weekend of tax revenue would be worth it for the small businesses in this state who continue to struggle.”
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JohnStark
If no sales tax for two days would "give local business an economic boost", imagine what 365 days of no sales tax would do. Rep. Solomon is on the right track but he needs to take his proposal much further to a fundamental revamping of the RI tax code. Personally, it would never occur to me, or many of my friends, to make any type of major purchase in RI.
Tuesday, January 5, 2016 Report this
Justanidiot
I think we should eliminate all taxes. What good do they do except bleed the citizens dry and put a new addition the building and grounds director's house. Didn't we learn anything from our Founding Fathers?
Tuesday, January 5, 2016 Report this
Scott58
If Rep Solomon wants to help Rhode Islanders he would be advised to vote against any tolling on our roads. Further, if Rep Solomon wants to help himself retain his seat in the RI house, he'll vote against any tolling; since his votes do and will have consequences.
Wednesday, January 6, 2016 Report this
markyc
This type of legislation would be a win-win for the State.
1) It would reduce the sales tax on RI purchases that are made during that particular weekend.
2) As it stands now, if someone from RI makes a purchase(s) in Mass. during THEIR sales tax holiday weekend, RI residents are SUPPOSED to submit the 7 % tax abated to RI.
3) It's the perception/publicity the legislation would provide; it would indicate to the average Rhode Island resident/small business as well as out of state visitors(it would provide an open invitation to visitors/tourists, etc.) that the RI legislature is thinking of them; not a program of tax incentives directed at huge companies or for programs that don't apply to most RI taxpayers/businesses.
Thursday, January 7, 2016 Report this