Rhode Island Senate Bill S0416

Rhode Island 2025 Regular Session

• Introduced: 2/26/25
• Refer: 2/26/25

Caption

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

Impact

The legislative intent behind S0416 is to enhance the economic environment for businesses within the state, particularly those in the hospitality and food service sectors. By eliminating this local tax, advocates of the bill argue that it will reduce financial burdens on both consumers and business owners. This could potentially increase consumer spending in restaurants and bars, contributing to economic recovery and growth within the statewide dining sector.

Summary

Bill S0416 is an act introduced in the Rhode Island General Assembly, aimed at phasing out the local meals and beverage tax over a period ending January 1, 2029. The bill specifies a gradual reduction of the tax, commencing with a decrease of 0.25% each year and culminating in the complete elimination of the tax by the sunset date. This legislation has been assigned to the Senate Finance Committee for further deliberation.

Contention

There may be points of contention regarding the bill regarding fiscal implications for local municipalities, which traditionally rely on the revenue generated from such taxes. Local governments may express concerns about the potential loss of funding for public services, as the revenue from the meals and beverage tax contributes to local budgets. Proponents of the bill will need to navigate these concerns to ensure that the phase-out of the tax does not lead to significant consequences for public service funding at the local level.