A Simple Way to Keep a Sales Tax Promise

H5854-featured

On Monday, the RI Center for Freedom & Prosperity suggested that the State of Rhode Island should keep its promise to reduce the sales tax rate to 6.5% whenever it began to collect taxes on Internet sales.  Now, Republican Representative George Nardone, of Coventry, has put in legislation intended to do just that:

State Representative George Nardone District 28 Coventry is introducing legislation to lower the sales tax from 7% to 6.5% based on a 2014 R.I. law that was universally supported by the House, Senate, and Governors office.

“It’s time for state lawmakers to keep the promises we made”

The bill, H5854, is very simple.  State law already states that Rhode Island will collect Internet sales taxes and drop the rate to 6.5% “upon passage of any federal law that authorizes states to require remote sellers to collect and remit sales and use taxes,” and reduce the rate.  Nardone’s legislation simply adds the words “or court decision” after “federal law.”

This would be a no-brainer for elected officials if their brains were able process the notion of not always increasing revenue.

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  • RITaxpayer

    I understand a promise is a promise and the sales tax should be reduced to what was promised, but if we really wanted to make a difference, we would drop the tax enough to lure Mass and Ct shoppers here.

    Sales tax in Mass is 6.25%
    Sales tax in Conn is 6.35%

    If we drop ours to 6.5% we’ll gain nothing except lower state revenue. If we dropped the sales tax to say, 4.5% or 5% we’d have a real opportunity to get those Mass and Conn shoppers living on the borders to shop here. Especially for big ticket items.

    Look at the business NH does around the holidays at their liquor stores. You wouldn’t go the extra miles to buy one pint of booze but if you’re going to buy a case or two, it’s worth the trip. (if you by-pass the tolls)

    Plus, it would REALLY bother Mass officials, another big plus.

    RITaxpayer

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