Rhode Island Ready for Marketplace Fairness Act
- Jul 8, 2013 | Gail Cole
A Streamlined Sales Tax state since 2007, Rhode Island has already embraced many of the tax simplification measures that MFA would require in order for a state to impose a remote sales tax obligation. It is well positioned to take advantage of MFA should it pass, and to require remote sellers to collect and remit Rhode Island sales and use tax.
Under the FY 2014 budget, the following changes would take place should MFA becomes law:
- The state rate would drop from 7% to 6.5%;
- The 1% local meals and beverage tax would increase to 1.5%; and
- Retail sales of clothing and footwear would be entirely exempt from sales and use tax.
Whether or not federal lawmakers will approve the Marketplace Fairness Act of 2013 remains to be seen. While it had a strong show of support in the Senate, it has been waiting on the table of the House since early May.
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