RI Has 7th Highest Taxes in U.S.
Rhode Island has one of the nation’s highest tax burdens – and a big reason for that is local property taxes, a new study shows.
Based on the overall state-and-local tax burden, Rhode Island ranks seventh highest nationwide, the study says.
When it comes to property taxes, Rhode Island’s comparative tax burden is even higher, ranking the state sixth nationwide, the study shows.
The findings are part of a study to be formally issued todaycq by the Rhode Island Public Expenditure Council (RIPEC), a business-backed public policy group which monitors the state’s finances.
The annual report – “How Rhode Island Compares” – shows that Rhode Island’s overall state-and-local tax burden has increased in the last 10 years, while that of its two neighboring states – Connecticut and Massachusetts – has improved, said Gary S. Sasse, RIPEC’s executive director. For example:
In 1995, Rhode Island had the 14th highest tax burden; now it has the 7th highest.
In 1995, Massachusetts ranked 23rd; now it’s ranked 34th.
In 1995, Connecticut ranked 7th; now it ranks 11th.
In other words, Rhode Island’s state-and-local tax burden has grown in the past decade, while the tax burden in Connecticut and Massachusetts has declined.
“Rhode Island is going in the opposite direction” compared with its two neighboring states, Sasse said. “Our neighbors are doing better in making their state more tax-competitive,” he said.
For every $1,000 of personal income, state and local governments in Rhode Island collect about $123 in taxes, while Connecticut collects about $119, and Massachusetts about $107, the study shows.