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Rhode Island Lt. Gov. Fogarty Renews Calls for RI Tax-Free Holiday

SB Informer
Monday, August 7, 2006; 04:02 AM

On Wednesday, Massachusetts Gov. Mitt Romney signed a law creating the nation's largest tax holiday. All retail sales under $2,500 will be exempt from the state's 5% sales tax on August 12-13. This year, a record 14 states and the District of Columbia will offer sales tax breaks this summer.

Today, Lt. Governor Charlie Fogarty, Chairman of the state’s Small Business Advocacy Council, (SBAC) renewed his call for a tax-free holiday in Rhode Island.

“A sales tax holiday will help our state’s retailers remain competitive with Massachusetts and other states that have the holiday,” Fogarty stated. “Unfortunately, once again thousands of Rhode Islanders will be crossing the border to shop in Massachusetts to take advantage of its tax holiday. Rhode Island businesses will be deprived of summer sales,”

Fogarty recommended that the tax-free holiday be put in place as a pilot program for two years in order to evaluate its impact prior to making it permanent.

“It is important that we keep the playing field level for Rhode Island retail businesses, many of whom are small businesses,” said Fogarty. “Too often, the focus is on tax credits and sales tax exemptions geared toward luring big companies to the state, yet the needs of our smaller employers and existing companies are ignored.”

Fogarty added, “A tax-free shopping holiday similar to Massachusetts will prevent Rhode Island businesses from losing out on significant cross-border sales and provide a real break for families purchasing back-to-school and off-to-college supplies including computer equipment and furniture. We need to make a sales tax holiday the reality in 2007.”