Rhode Island Considering Sales Tax Holiday on Alcohol
- Sales Tax News
- Apr 10, 2012 | Susan McLain
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.