RI sales tax holiday unlikely

PROVIDENCE, R.I. (AP) - A proposal to create a sales-tax free weekend in Rhode Island to boost retail business appears headed for an early demise in the Statehouse.

Rep. Deborah Ruggiero's bill would generally free people from paying the state's 7 percent sales tax on purchases of $2,500 or less during the third weekend in August. The freshman lawmaker said her bill would help business owners struggling with one of the worst financial downturns since the Great Depression.

But lawmakers on the powerful House Finance Committee questioned Wednesday whether the bill would increase sales. It would cost nearly $5 million in lost tax revenue for a state struggling with massive budget deficits.

A similar tax holiday bill is pending in the Senate.