NEW: Chafee’s Tax on Barber Shops, Home Heating Oil

NEW: Chafee’s Tax on Barber Shops, Home Heating Oil

Hours before Governor Lincoln Chafee is scheduled to deliver his first budget address, new details are emerging on exactly what he plans to say.

GoLocalProv has learned that Chafee will be advocating for lowering the overall state sales tax, from a New England high of 7 percent to 6 percent—slightly less than the rate in Massachusetts, and on par with Connecticut.

While he wants to lower the tax, Chafee will also be broadening the things covered by the state sales tax. Tonight, he is expected to propose a one percent tax on services—including dry cleaning and haircuts. The new one percent tax also will apply to home heating oil.

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The tax reform will be combined with a plan to cut the budget. Chafee is expected to target Health and Human Services for the most savings.

Notably, the new sales tax is not expected to include groceries and prescriptions drugs, as Chafee had warned it might when he was campaigning for governor.

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