Tax & Accounting Blog

Rhode Island Budget Still Undecided

Indirect Tax, ONESOURCE, Sales and Use Tax June 29, 2011

In the face of a fast approaching new fiscal year, the state of Rhode Island is still without an approved budget in place. Rhode Island Governor Lincoln Chafee had his initial proposal vetoed by the state Legislature, which was countered with a bill, H5894, that has since been approved by the Rhode Island House of Representatives. The state Senate is set to vote on this bill Wednesday 29 June 2011, and if approved will need the final approval of Gov. Chafee. If the currently proposed bill passes and takes effect, the state’s sales and use tax rate will decrease effective 1 July 2011. The bill also includes an increase to the state’s meals tax effective 1 July 2011 and several product taxability adjustments set to take effect 1 October 2011. Those who do business in Rhode Island will want to keep an eye on this process in order to be prepared if changes are approved.