DOR: Chafee tax plan could raise more

PROVIDENCE, R.I. (AP) - A state Revenue Department study says Gov.-elect Lincoln Chafee's proposal to expand the state sales tax could raise more money than he at first predicted.

Chafee said during his campaign that he would consider a 1 percent tax on many items now exempt from the state's 7 percent sales tax as a way to raise more than $89 million to help close a projected $300 million budget shortfall.

A 2010 Tax Expenditures Report suggests that Rhode Island could bring in as much as $121 million from the tax.

A spokesman for Chafee tells The Providence Journal the 1 percent tax would be a temporary measure until the budget is under control.

The question remains whether Rhode Islanders are willing to accept another tax, especially on items including food, textbooks and some medical devices.