Bill H6256 at the General Assembly, to be heard tomorrow in House Finance at the Rise, would “repeal the property tax and sales and use tax exemption for boats”.

Anchor Rising reached out to all sponsors of the bill with the following question.

The marine industry employs over 13,000 people in Rhode Island as of 2018. In addition to this income tax revenue to the state, the marine industry in Rhode Island generates tax revenue from boat construction and repair materials; accommodations; transportation; and food service and entertainment, among other goods and services.

My question for you as sponsors of this bill is: has an analysis been done of the number of jobs and the total amount of the revenue to the state budget that would be lost if the marine industry, or a significant portion of it, is incentivized to leave the state by passage of your bill – as was the situation prior to 1993?

Link to the data in the first sentence above here.

Background here plus at multiple links from an easy Google search, on Rhode Island’s 1993 repeal of the 7% sales tax on boats. Even non-Republican-friendly PolitiFact, in 2010, confirmed then-Governor Carcieri’s statement that, at the time,

… Rhode Island marine industry includes 6,600 jobs across 2,300 companies, which generates $1.6 billion a year in sales activity.

though, in that same rating, they got a little picky about another study that his administration pointed to.

Co-Sponsor of H6256 Representative Edith Ajello responded late this afternoon to Anchor Rising’s inquiry as follows:

After further consideration I have decided to withdraw my name as a co-sponsor of this bill.

I hope folks will help us find ways to fill budget holes.

The deadline for sponsors of H6256 to respond is 1:00 pm tomorrow, May 6. This post will be updated with any other responses, especially those that include the requested fiscal analysis.

[Featured image by Praswin Prakashan via Unsplash]