Bill proposes sales tax holiday for R.I.

Rep. Deborah L. Ruggiero, D-Jamestown, has introduced a bill that would establish a one-day sales tax holiday in Rhode Island on Saturday, Aug. 6.
Rep. Deborah L. Ruggiero, D-Jamestown, has introduced a bill that would establish a one-day sales tax holiday in Rhode Island on Saturday, Aug. 6.

PROVIDENCE – A new bill introduced in the General Assembly last week aims to create a “sales tax holiday” to exempt Rhode Islanders from paying sales tax for one day in August.
The legislation, introduced by Rep. Deborah L. Ruggiero, D-Jamestown, would establish the one-day sales tax holiday on Saturday, Aug. 6. The legislation brings Rhode Island in step with efforts already in place in Massachusetts, which offers an annual sales-tax holiday on the second week of August.
Ruggerio, in a statement, said the new legislature aims to stimulate the economy by generating revenue for local businesses.
“We should consider this sales tax holiday as a way to jump-start spending, boost consumer confidence and help drive consumers to our state’s small businesses at a time that is typically less busy,” Ruggerio said. “The later part of the year is usually the busy time for retailers, and if we can entice shoppers to start a little earlier with the back-to-school shopping, or help convince those considering the purchase a big-ticket item like furniture or electronics to make a move, we might be able to make the season longer and more robust for local business.”
The one-day exemption, however, would only be for items priced $2,500 or less and would exclude vehicles, motorboats, meals, utilities and tobacco products, according to the legislation.
According to a Boston Globe article, the Massachusetts Department of Revenue estimates Bay State consumers saved $24.6 million during the two-day tax holiday in 2014, compared with $14.9 million in 2008.
Co-sponsors of the legislation include representatives K. Joseph Shekarchi, D-Warwick, Brian Patrick Kennedy, D-Hopkinton, Christopher R. Blazejewski, D-Providence and Marvin J. Abney, D-Newport.

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