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Alcohol Sales Tax Axed as RI Keeps Up with Mass.

Alcohol Sales Tax Axed as RI Keeps Up with Mass.

PROVIDENCE, R.I. (AP) _ Rhode Island is eliminating the state sales tax on certain alcohol products and exempting artwork from the tax for a first-in-the nation statewide arts district.

Beginning Sunday, wine and spirits bought at a Rhode Island liquor store will no longer carry a 7-percent sales tax. The tax will remain for beer and other malt beverages.

Rhode Island last summer increased the excise tax on alcohol, which is generally paid by distributors who import alcohol to the state.

The Legislature enacted the tax changes to help Rhode Island liquor stores be more competitive with businesses in Massachusetts, which repealed its sales tax on beer, wine and liquor in 2011.

Rhode Island is expected to lose about $7.2 million in revenue without the sales tax on wine and spirits but gain $6 million by increasing alcohol excise tax rates.

 

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