Sen. Sheehan applauds governor, speaker’s support for cutting minimum corporate tax
STATE HOUSE — Sen. James C. Sheehan (D-Dist. 36, Narragansett, North Kingstown) is applauding statements made by Gov. Gina Raimondo and Speaker of the House Nicholas A. Mattiello (D-Dist. 15, Cranston) indicating their support for further reducing the minimum corporate tax.
Last year, the General Assembly reduced the tax from $500 to $450. This year, Speaker Mattiello told a gathering of the Northern Rhode Island Chamber of Commerce that he is in favor of cutting the tax by $50 once again.
Senator Sheehan has long supported and sponsored legislation that would reduce, suspend or eliminate the tax. This year, he has introduced legislation (2016-S 2276) that would provide that the minimum business corporation tax would not be imposed upon any corporation for a period of three years from the date of its incorporation.
“I am encouraged that the governor and speaker continue to support reforms and business initiatives,” said Senator Sheehan. “Companies deciding Rhode Island is the place they want to do business shouldn’t, upon opening their doors, find a tax bill from the very state that urged them to do business here. That’s money a new company owner could better use to build that business.”
Under existing state tax laws, all Rhode Island businesses are billed a minimum corporate tax of $450 per year — down from $500 the previous year.
“I think that reduction sends the right message,” said Senator Sheehan. “And we can work to reduce that amount next year. It seems nonsensical to try to attract new businesses to Rhode Island, and then welcome them to the state by handing them a tax bill.”
Senator Sheehan, who chairs the Senate Committee on Government Oversight and serves on the Education and the Health & Human Services committees, said “Reducing the cost for small businesses — those that are placing their trust, and their investments, in Rhode Island as a good place to operate — must be a goal if we want to improve our state’s business climate.”
For more information, contact:
Daniel Trafford, Publicist
State House Room 20
Providence, RI 02903