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Rhode Island Budget Proposals Not Popular


The Rhode Island House is supposed to vote this week on the 2013 budget proposal. The state fiscal year begins July 1, 2012, but not all revenue generating proposals are popular right now.

The Rhode Island House Budget Proposal imposes a 7-percent sales tax on:

  • Limos, taxi fares and other hired driving;
  • Car washes; and
  • Pet services such as grooming.

In addition to these services becoming taxable, clothing above $250 would be taxed. Currently all clothing is sales tax-free.

The cigarette tax is proposed to be raised from $3.46/pack to $3.50/pack.

The Taxi Owners Association of Rhode Island takes exception to the introduction of sales tax on taxi fares. “They are putting a huge burden on a handful of the lowest income earners in the state,” said Gregg Manning, Taxi Owners Association President. Association statistics indicate that cab drivers “…earn as little as $20,000 per year,” and the organization calls the tax unfair and destructive.

“Taxi owners say they’re being driven to anger and worry, and are condemning a proposal to add sales tax to every fare they take.”

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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.”