Trying again: RI lawmaker proposes sales tax holiday

Warwick Mall shopper_230956

PROVIDENCE, R.I. (WPRI) — Massachusetts didn’t have a sales tax holiday last year — because they needed the revenue — but Rhode Island lawmakers are considering establishing a sales tax holiday in August of this year.

Rep. Joseph J. Solomon, Jr. of Warwick filed similar legislation in 2016. Solomon’s latest proposal would put the holiday on the weekend of August 12-13, 2017. No excise or sales taxes would be collected on sales of tangible personal property costing less than $2,500, but the holiday would not apply to sales of telecommunications service, tobacco products, gas, steam, oil, electricity, motor vehicles or motor boats.

“I’m tired of seeing people leave the state to purchase goods in Massachusetts,” Solomon said in a statement Thursday. “I want to see people from other states coming here to make their retail purchases.”

Both Massachusetts and Connecticut have had sales tax holidays in recent years. The sales tax holiday is considered a boost to businesses by sparking economic activity, Solomon said.

The bill has been referred to the House Finance Committee, Solomon’s office said.

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