New proposal aims to help small businesses in Rhode Island
PROVIDENCE, R.I. (WLNE) — State Sen. Melissa Murray is proposing a bill to help small businesses in Rhode Island.
Murray on Thursday will introduce legislation that would exempt the first $100,000 of the tangible tax for these businesses.
A tangible tax is the tax that business owners pay on furniture, computers, and other equipment needed to operate their business. This tax is not related to the real estate tax.
“Eliminating this tax for smaller businesses will give them genuine, much needed relief,” she said. “It’s a way our state can provide help for the small businesses that support our cities and towns, make our communities unique, and most importantly, employ Rhode Islanders.”
If passed, experts predict that 85% of small businesses in the state would not have to pay that tax. Those who would, will have the first $100,000 paid.
The legislation is being supported by Senate leadership. At a chamber event Thursday morning, Senate President Dominick Ruggerio touted the proposal.
“This proposal will help Rhode Island’s businesses, and particularly our small businesses,” said Ruggerio. “Cities and towns would be made whole through a reimbursement from the state.”
Senate Minority Leader Jessica de la Cruz said Thursday she would support the measure, noting that she introduced a similar bill that would be more “fiscally conservative.”
She concluded, “Make no mistake, we will support any version of this legislation that will provide relief to Rhode Island taxpayers.”
House Speaker Joe Shekarchi is still reviewing the legislation, according to a spokesperson.
The proposal would go into effect in fiscal year 2025, if passed.