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New budget kills one tax, raises others
Taxes to raise $4.6M in budget year
Updated: Tuesday, 03 Jul 2012, 7:37 AM EDT
Published : Monday, 02 Jul 2012, 5:23 PM EDT
PROVIDENCE, R.I. (AP) — Several changes to Rhode Island's taxes have taken effect with the start of the state's budget year July 1.
The Providence Journal reports that the 7-percent sales tax on package tours and scenic and sightseeing services was repealed. State lawmakers approved the tax last year, but killed it after criticism from the tourism and hospitality industries.
The surcharge on rental vehicles rose to 8 percent from 6 percent. Rental companies will keep 60 percent of the fee, up from 50 percent. The remaining 40 percent will go to the state.
And the state tax on cigarettes is up to $3.50 a pack from $3.46.
The new taxes are expected to raise nearly $4.6 million in the budget year.
Other tax changes will take effect on Oct. 1.
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