Rep. Edwards Tries Again to Lower State Sales Tax

Rep. Edwards Tries Again to Lower State Sales Tax

Rep. John G. Edwards is attempting to lower Rhode Island’s sales tax for the third year in a row.

Edwards, D-Portsmouth, Tiverton, has submitted a bill which would reduce the state sales tax to six percent as of July 1, 2011 and continue to gradually reduce the rate by one percent per year until the rate is reduced to three percent in 2015. The bill also seeks to broaden the sales tax to cover items exempt in Rhode Island.

At 7 percent, Rhode Island’s sales tax rate is the highest in New England.

GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST

“Our high tax rate continues to hurt Rhode Island businesses, particularly since the state is so small that it is very easy for shoppers to take their business to other states,” Edwards said. “During a time of unprecedented unemployment and financial peril, there should be no discussion of raising the sales tax or implementing any new taxes.”

While the bill seeks to broaden the sales tax to cover items exempt in Rhode Island, food, clothing and prescription medicines would still be exempt.

“We must also make sure that the essentials- food, clothing and prescription drugs- are left untaxed,” Edwards said. “Traditionally, sales taxes disproportionately affect the poor and the elderly who are on fixed incomes. We don’t want to be taking food out of someone’s shopping cart to balance our budget.”