Gov. McKee in his State of the State Address earlier this week, announced a $100 million tax relief plan to support Rhode Island residents.
Gov. McKee Tax Relief Plan
Earlier this week Gov. Dan McKee’s State Address rolled out his $100 million tax relief plan as part of his FY24 budget proposal. The tax relief plan from Rhode Island decreases the state sales tax incrementally, starting this year from 7% to 6.85%. It would result in annual savings of about $35 million.
Moreover, this includes lowering the corporate minimum tax from $400 to $375. This tax most negatively affects Rhode Island’s smallest businesses. The governor also desires to provide relief from rising gas prices by preventing a scheduled 3-cent increase, which would go into effect on July 1. This proposal will provide savings of nearly $25 million over the next two years.
The tax relief proposal from Rhode Island also includes a measure to provide energy bill rebates. On this front, Gov. McKee plans on giving a 4% rebate on gross receipts tax on electric bills, as well as a 3% gross receipts tax rebate on natural gas bills. In all, about $35 million in energy bill rebates to supply relief.
Other FY24 Budget Proposal Plans
Gov. McKee also plans to invest over $4 million in Workers Compensation Fund to prevent an increase in the premiums paid by Rhode Island businesses. Eliminating the litter tax for businesses worth up to $1 million under the current structure. This tax collected is not directed to support litter or environmental initiatives. Hence, governor Mckee proposes targeted allocation for the Keep Rhody Litter Free initiative.
Apart from providing tax relief, Gov. McKee, in his second primetime State of the State address, discusses housing affordability and better schools. The governor promised to boost the state aid for Rhode Island’s traditional public schools, as well as more funds for the “out-of-school learning programs.” Although the governor didn’t detail much about the housing front but did talk about “building a capable Department of Housing.”