RI
Rhode Island House Bill H5286

Rhode Island 2025 Regular Session

Rhode Island House Bill H5286

Introduced
1/31/25  

Caption

Exempts from the sales and use tax, the sale of beer and malt beverages at retail.

Impact

The removal of sales tax on beer and malt beverages could have significant implications for the state's economy and regulatory landscape. Proponents may argue that this measure will encourage consumption and could catalyze job creation in relevant sectors, including production, distribution, and retail. Additionally, it could enhance tourism, aligning with other state strategies to promote local breweries. However, it also raises questions regarding the loss of tax revenue that is traditionally generated from these transactions, necessitating a discussion about budget impact and potential compensatory measures.

Summary

House Bill H5286 proposes an exemption from the sales and use tax for the retail sale of beer and malt beverages in Rhode Island. This legislation introduces amendments to Section 44-18-7.1 of the state's General Laws, clearly defining alcoholic beverages and outlining the terms under which this exemption operates. By exempting these specific products from sales tax, the bill aims to reduce the overall pricing of beer and malt beverages, potentially stimulating increased sales in the retail market, especially benefiting local businesses and breweries.

Contention

The bill has the potential to face contention, particularly regarding alcohol regulation and public health concerns. Critics of such tax exemptions might argue that reducing the price of alcoholic beverages could lead to increased consumption, exacerbating issues associated with alcohol abuse and underage drinking. Furthermore, there is a debate about whether the state should provide tax breaks for specific industries or products, particularly in times of budget constraints when essential public services are reliant on tax revenues. Stakeholders may call for a more comprehensive evaluation of the ramifications of the bill to ensure balanced decision-making.

Latest H5286 Activity

Companion Bills

No companion bills found.

Previously Filed As

RI S0340

Imposes the sales tax on the purchase of animals from a breeder.

RI H5788

Prohibits the collection of sales tax on refundable deposits for batteries and core charges for motor vehicle equipment, parts or components.

RI H5476

Removes the exemption from the state hotel tax for residences rented in their entirety.

RI H5785

Creates a sales tax holiday on August 9 and 10, 2025.

RI S0416

Phases out the local meals and beverage tax by January 1, 2029.

RI S0335

Removes the exemption from the state hotel tax for residences rented in their entirety. Effective 1/1/2026.

RI S0045

Removes the exemption from the state hotel tax for residences rented in their entirety on a hosting platform on or after January 1, 2026, for a period of thirty (30) nights or less.

RI S0419

Establishes a restricted receipt account for the benefit of the Rhode Island public transit authority, funded by sales taxes collected from ride-share companies, which said sales taxes would be exempt from indirect cost recovery provisions.

Similar Bills

RI H5080

Exempts from the sales tax scalp hair prosthesis or wigs that are necessary due to hair loss from a medical condition.

RI S0094

Exempts from the sales and use tax, the sale of beer and malt beverages at retail.

RI S0039

Exempts from the sales tax scalp hair prosthesis or wigs that are necessary due to hair loss from a medical condition.

RI H5787

Exempts from the sales tax eligible school supplies, costing less than $30.00, purchased within one week prior to the commencement of the academic year.

RI H5475

Exempts new or used bicycles from sale and use tax.

RI H6014

Exempts from the sales tax firearm safety equipment, storage devices, gun safes, gun cabinets, gun vaults, gun cases, strong boxes, cable locks, trigger locks and biometric locks.

RI S0435

Exempts from the sales tax eligible school supplies, costing less than $30.00, purchased within one week prior to the commencement of the academic year.

RI S0432

Exempts from the sales tax firearm safety equipment, storage devices, gun safes, gun cabinets, gun vaults, gun cases, strong boxes, cable locks, trigger locks and biometric locks.