PROVIDENCE – Rhode Island ranked No. 7 in the nation for highest state and local taxes collected per $1,000 of personal income at $109.47, 10.3 percent more than the national average of $99.25 per $1,000, according to a report from the Rhode Island Public Expenditure Council Friday.
The report also showed that Rhode Island ranked third-highest among New England states on a per $1,000 of personal income, behind Maine at $116.71 and Vermont at $116.57. New Hampshire had the lowest regional take of state and local taxes per $1,000 of personal income, $84.35 (giving it a national rank of 44th-highest), followed by Massachusetts, at $99.24, and Connecticut, at $103.82.
The Ocean State’s state and local tax collections per capita ranked No. 12 for highest in the United States at $5,570, 11.8 percent higher than the national average of $4,982. Rhode Island had the fourth-highest tax collection per capita in New England, following Connecticut (No. 2 in the nation at $7,208), Massachusetts ($6,497) and Vermont ($5,893). Collecting less per capita were Maine ($5,237, for a national ranking of 14th-highest) and New Hampshire ($4,835, 19th-highest in the nation).
RIPEC noted that the fiscal 2016 figures do not reflect the phase-out of the automobile tax in Rhode Island, which it said will make a “notable dent” in Rhode Island’s tax burden.
“As the data indicate, the overall tax burden in Rhode Island remains high relative to the rest of the country. In particular, the property tax continues to place a substantial burden on individuals and businesses in the state,” said John C. Simmons, Executive Director of RIPEC in a statement.
Fiscal 2016 property tax collection
- Rhode Island collected $47.54 per $1,000 of personal income, ranking No. 4 for highest in the country, 52.2 percent higher than the national average
- Rhode Island collected $2,419 per capita, ranking No. 6 in the country and 54.3 percent higher than the national average
Fiscal 2016 individual income tax collection
- Rhode Island collected $23.01 per $1,000 of personal income, ranking No. 27 for highest in the nation
- Rhode Island collected $1,171 of individual income tax per capita, ranking No. 19 in the nation
New England states rely more heavily on property taxes, RIPEC noted, with all six New England state ranking in the top 10 nationally for property tax collections per capita.
Fiscal 2016 general sales tax collection
- Rhode Island collected $18.12 per $1,000 of personal income, 22.5 percent lower than the national average and ranking No. 38 for highest in the country.
- Per capita, general sales tax collection in Rhode Island was $922, 21.5 percent lower than the national average and ranking No. 36 for highest in the country
Fiscal 2016 “other taxes”
- Other state and local taxes accounted for $20.81 per $1,000 of personal income in Rhode Island, ranking No. 26 for highest in the country, 2.2 percent lower than the national average
- Other state and local tax collection per capita was $1,059, ranking No. 23 for highest in the country, 0.9 percent lower than the national average
Rhode Island also ranked No. 21 in the nation for total revenue per $1,000 of personal income at $219.54 in fiscal 2016, 4 percent higher than the national average of $211.09. Per capita, total revenue ranked No. 17 in the nation at $11,172, 5.4 percent higher than the national average.
Simmons added that “Policymakers seeking to promote economic development in the state should continue to focus on reducing the cost of doing business. Such systemic reforms will continue to improve the overall business climate in Rhode Island, and allow us to gradually move away from the current incentives-based economic development strategy.”
Chris Bergenheim is the PBN web editor. Email him at Bergenheim@PBN.com.
