Wine and spirits permanently exempt from Sales Tax in Rhode Island.

The 7-percent wine and spirits tax has been eliminated for good in Rhode Island.
 
"It's great for the economy, so we definitely shouldn't be getting taxed. Like I said, too much tax on everything as it is,"Says a customer at City Liquors in Providence.

For years liquor stores in Rhode Island, especially those in border towns, have competed with stores in Massachusetts that don't tax wine and spirits.
 State Representative and Liquor Store owner, Jan Malik, says this new permanent law helps level the playing field.
 
"After all year we'd all have to report, all liquor stores would have to report. This year we found that it increased sales by 13.9 percent this year in the state of Rhode Island,"Says Representative Malik.

It's not just the stores in border areas seeing a growth in sales. Since the law was first put in, the owner of City Liquors in Providence says his sales have gone up almost 5-percent.

"It makes a big difference, the customer doesn't like to see that 7 percent added in at the end.. Especially if their making a 100 dollar sale, 200 dollar sale that's an extra 14 dollars," Says City Liquors owner Kenneth Khoury.

"People have the opportunity right now to show the politicians at the state house that taxes do make a difference to them. So I suggest to all of them, shop Rhode Island,"Added Representative Malik.

Beer is not on the tax exemption list. Representative Malik says he'd love to one day see it on that list. If it was, he estimates it would mean 12 million dollars or so that the state would have to make up for in the state budget.