2017 -- H 6127

========

LC002353

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

____________

H O U S E   R E S O L U T I O N

CREATING A SPECIAL LEGISLATIVE COMMISSION TO STUDY AND PROVIDE

RECOMMENDATIONS ON THE FEASIBILITY OF REDUCING THE STATE'S SALES TAX

TO THREE PERCENT

     Introduced By: Representatives Nunes, Hearn, Nardolillo, Shekarchi, and Hull

     Date Introduced: April 14, 2017

     Referred To: House Finance

     WHEREAS, Sales taxes are calculated as a percentage of the price of a fairly broad base

of taxable items and are charged at the time of purchase for specific goods and services; and

     WHEREAS, Section 44-18-18 of the Rhode Island General Laws establishes the state's

current retail sales tax rate at seven percent (7%); and

     WHEREAS, Sales taxes inevitably take a larger share of income from low- and middle-

income families than from rich families because sales taxes are levied at a flat rate and spending

as a share of income falls as income rises. Resultantly, states that rely heavily on consumption

taxes as a revenue source tend to be hardest hit by growing income inequality; and

     WHEREAS, In addition, inequality and/or a lesser sales tax imposed by neighboring

states results in lower retail sales, thereby lower tax revenue for our state; and

     WHEREAS, A lower state sales tax in Rhode Island could increase in-state and out-of-

state consumerism; now, therefore be it

     RESOLVED, That a special legislative commission be and the same is hereby created

consisting of ten (10) members: three (3) of whom shall be members of the Rhode Island House

of Representatives, not more than two (2) from the same political party, to be appointed by the

Speaker of the House; one of whom shall be the Tax Administrator of the Rhode Island Division

of Taxation, Department of Revenue, or designee; one of whom shall be a member of the House

Fiscal Advisory Staff, to be appointed by the Speaker of the House; one of whom shall be the

Chairperson of the most recent Sales Tax Commission, or designee; one of whom shall be the

CEO for the RI Center for Freedom & Prosperity, or designee; one of whom shall be the

Executive Director of the Rhode Island Public Expenditure Council, or designee; and two (2) of

whom shall work or own enterprises in the small business or retail industry, to be appointed by

the Speaker of the House.

     In lieu of any appointment of a member of the legislature to a permanent advisory

commission, a legislative study commission, or any commission created by a General Assembly

resolution, the appointing authority may appoint a member of the general public to serve in lieu

of a legislator, provided that the Majority Leader or the Minority Leader of the political party

which is entitled to the appointment, consents to the member of the general public.

     The purpose of said commission shall be to make a comprehensive study and analysis

and provide recommendations on feasible steps that can be taken to reduce the state's sales tax to

three percent.

     Forthwith upon passage of this resolution, the members of the commission shall meet at

the call of the Speaker of the House and organize and shall select a chairperson.

     Vacancies in said commission shall be filled in like manner as the original appointment.

     The membership of said commission shall receive no compensation for their services.

     All departments and agencies of the state shall furnish such advice and information,

documentary and otherwise, to said commission and its agents as is deemed necessary or

desirable by the commission to facilitate the purposes of this resolution.

     The Speaker of the House is hereby authorized and directed to provide suitable quarters

for said commission; and be it further

     RESOLVED, That the commission shall report its findings and recommendations to the

House of Representatives no later than January 2, 2018, and said commission shall expire on

March 2, 2018.

========

LC002353

========

LC002353 - Page 2 of 3

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

H O U S E   R E S O L U T I O N

CREATING A SPECIAL LEGISLATIVE COMMISSION TO STUDY AND PROVIDE

RECOMMENDATIONS ON THE FEASIBILITY OF REDUCING THE STATE'S SALES TAX

TO THREE PERCENT

***

     This resolution would create a ten (10) member special legislative study commission

whose purpose it would be to study and provide recommendations on the feasibility of reducing

the state's sales tax to three percent, and who would report back to the House no later than

January 2, 2018, and whose life would expire on March 2, 2018.

========

LC002353

========

LC002353 - Page 3 of 3