PROVIDENCE – In his State of the State Address back in January, Gov. Daniel J. McKee unveiled a nearly $100 million tax relief plan that he vowed would lighten the burden on businesses and families.
But the General Assembly did not include all of McKee’s proposals in the record-setting $14 billion fiscal 2024 budget. However, during an exclusive interview with Providence Business News more than eight months into his first full term, McKee said the administration is looking at ways to balance the next budget while reducing tax burdens.
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“We are not looking to raise any taxes,” he told PBN. “And we are not looking to raise any fees.”
McKee said revenue will drive much of his decision-making. As for any specific initiatives that will target the business community, McKee said it’s too early to say. But he added that millions have already been committed to infrastructure, renewable energy and housing will translate to jobs, consumer spending and future growth.
“We can do blue chip and small business at the same time,” he said. “There is no reason that you can’t.”
McKee pointed to past successes like accelerating the phase-out of Rhode Island’s motor vehicle excise tax, the elimination of the litter tax and a $50,000 exemption from the tangible property tax paid on inventory and equipment.
It was recently revealed the state has a more than a $400 million surplus at the end of the 2023 fiscal year, yet the administration is still dealing with a staffing crisis that has vexed multiple state agencies, including those charged with the welfare of children and low-income residents.
McKee cited the state’s historically low unemployment rate as one of the reasons the public sector is struggling with recruitment and retention.
“We just announced that we had a surplus and it was like, ‘oh my God did you mismanage?'” he asked.
And though “everything is on the table” as far as fiscal 2025 proposals, McKee does plan to reintroduce an exemption from the sales and use tax on the trade-in value of trucks with a gross weight of 14,000 pounds or less, a $3.7 million savings which failed to make the cut in the current budget.
A staunch supporter of public-private partnerships, McKee is quick to mention his previous experiences as the mayor of Cumberland and as a business owner.
“We are focused on the things we control. Investing in projects to put people to work at the prevailing wage,” he said. “And have those projects pay dividends for decades to come.”
Christopher Allen is a PBN staff writer. You may contact him at Allen@PBN.com
Sounds like a no-brainer, unlike Smilely who raised PVD taxes, cut PVD homeowners exemption and just Brown a sweet PILOT agreement. Never thought I’d say it, but I miss Elorza.