Commission would study elimination of RI sales tax - News, Weather and Classifieds for Southern New England

Commission would study elimination of RI sales tax

Posted: Updated:
A Massachusetts liquor store advertises its sales tax advantage over Rhode Island. A Massachusetts liquor store advertises its sales tax advantage over Rhode Island.
WARREN, R.I. -

Talk of eliminating Rhode Island's sales tax is gaining attention, but the proposal has quite a few hurdles to clear.

State Rep. Jan Malik, a Democrat from Warren, is working on a special legislative commission to study that possibility.

"I want the state of Rhode Island at least to be competitive or better. The windfall would be to get it at zero percent," Malik said.

The commission would study how other states manage with no revenue from sales tax, such as New Hampshire.

The House approved the formation of the commission. The Senate still has to decide.

"In Massachusetts as we speak today, it's 6.25 (percent). Connecticut, 6.35. So, can you imagine us at zero?" Malik said.

Here's a quick example: a sales receipt from Malik's liquor store in Rhode Island.

A customer made a $102.95 purchase, but walked out the door having paid $110.16. If that customer made a similar purchase 10 minutes away in Massachusetts, he or she would have saved about $7.

Massachusetts has no sales tax on liquor.

How does Rhode Island compete with 7 percent? Malik said it's simple: it doesn't.

"We're the smallest state. We should be better than everybody else," Malik said.

But would the commission be able to convince state lawmakers to eliminate the sales tax?

"To be honest with you, I think we can do the job. That's why I'm looking for people who are really serious about this," Malik said.

If the Senate approves the formation of the commission, findings would be presented to the General Assembly on or before Feb. 6.

  • Money Watchers

  • The NBC 10 Money Watchers are looking out for your bottom line.

    Frank Coletta, Alison Bologna, and Bill Rappleye are constantly making sure that your tax dollars are being used wisely.

    The NBC 10 Money Watchers are also looking for ways that you can save money and they are uncovering local business trends that impact unemployment. If you have a tip for the NBC 10 Money Watchers, email news@wjar.com.

  • Money WatchersMore>>

  • Frank Coletta

    Frank Coletta

    Frank Coletta anchors NBC 10 News Sunrise and NBC 10 News at Noon, and is also a member of the NBC 10 Money Watchers.
    Frank Coletta anchors NBC 10 News Sunrise and NBC 10 News at Noon.
  • Alison Bologna

    Alison Bologna

    After four years as an anchor and reporter in Boston, Alison Bologna returns to NBC 10 News to anchor its new 7 p.m. show with Dan Jaehnig and to report with Jim Taricani on the I-Team. She also anchors
    After four years as an anchor and reporter in Boston, Alison Bologna returns to NBC 10 News to anchor its new 7 p.m. show with Dan Jaehnig.
  • Bill Rappleye

    Bill Rappleye

    Bill gladly returns to Rhode Island airwaves following a 10-year absence. He broke into television news in New Bedford in the early 1980s, working as a photographer/reporter for cable television.
    Bill gladly returns to Rhode Island airwaves following a 10-year absence. He broke into television news in New Bedford in the early 1980s, working as a photographer/reporter for cable television.
Powered by WorldNow

23 Kenney Drive
Cranston, R.I., 02920

Telephone: 401.455.9100
Fax: 401.455.9140
Email: news@wjar.com

Can't find something?

NBC 10 Outerwear Provided by:

NBC 10 Media Relations
Provided by:

Powered by WorldNow
All content © Copyright 2000 - 2014 Media General Communications Holdings, LLC. A Media General Company.