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Rhode Island Considering Sales Tax Holiday on Alcohol

In a controversial move, “…Rhode Island legislators have introduced a bill that will decrease state revenue.” Rhode Island House Bill 7725 (HB 7725) “…would remove the state sales tax on alcohol for days surrounding select holidays including Memorial Day, Fourth of July, Labor Day, Thanksgiving, and Winter Holidays.”

According to Alcohol Justice, this would make alcohol sales tax-free for nearly a fifth of the year, for a total of 66 days. Next door neighbor Massachusetts made a similar move in 2010 by eliminating the sales tax on alcohol, so competition comes into play in considering this law to provide for a sales tax holiday during certain times of the year.

Connecticut, another Rhode Island neighbor, recently discussed the value of repealing the ban on alcohol sales on Sundays. Connecticut and Indiana are the only remaining states that ban Sunday sales.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Susan McLain
Avalara Author Susan McLain
Susan McLain began her career as a technical writer in technology industries such as satellite networking and medical devices. Her skills encompass technical and marketing writing, usability engineering, verification and validation testing and protocol writing, requirements development, business analysis, technical illustration/graphic design and marketing. She has owned her own business providing service to small to medium sized business and in other positions, she has been in project management, documentation and marketing. She is currently the content specialist for Avalara helping to “make sales tax less taxing.”