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6/26/2023
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Rep. Voas’ bill providing tangible tax relief for small businesses signed into law
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STATE HOUSE –Rep. Brandon T. Voas’ legislation (2023-H 6333A) which would provide significant relief for Rhode Island’s small businesses from the municipal tangible tax has been signed into law by the governor. The legislation was also included in the recently approved FY 2024 state budget.
The legislation creates a $50,000 exemption for all businesses subject to the tangible tax. The exemption completely wipes out the tangible tax — viewed as an administrative burden for small businesses and for the municipalities that collect it— for 75 percent of Rhode Island businesses.
“In order to have a healthy and thriving Rhode Island economy, we need to do everything in our power to remove the onerous obstacles that too often choke or stifle our state’s businesses. I am pleased that this bill was included in the state budget, which in turn will eliminate a significant obstacle and frustration for the majority of our state’s small businesses, all while saving our small businesses valuable time and dollars,” said Rep. Voas (D-Dist. 57, Cumberland, Central Falls).
The tangible personal property tax is paid by businesses on property other than real estate that has value by itself, such as computer equipment, furnishings and fixtures.
Since the tangible tax is a municipal-level tax rather than a state one, the state would reimburse each city, town and fire district annually for their lost revenue, just as it does for revenue they lost from the phased-out vehicle excise tax.
For more information, contact:
Andrew Caruolo, Publicist
State House Room 20
Providence, RI 02903
(401)222-6124
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