NEW: Raimondo Submits FY18 Budget, Banks on Collecting $30 Million from Internet Sales Tax
Thursday, January 19, 2017
Rhode Island Governor Gina Raimondo submitted her tax-and-spend plan for Fiscal Year 2018 at the General Assembly on Thursday, which includes an Internet sales tax when Amazon and others online retailers begin collecting -- and remitting -- a 7% sales tax to Rhode Island to total a budgeted $34.7 million in revenue.
Administration staff unveiled budget details Thursday morning, which include Raimondo's plan to cut Rhode Islander's car tax bill by 30% by requiring the tax to be assessed at fair trade-in value, and her proposal to spend $10 million this year for the "RI Promise" program of paying for two free years of college tuition -- which will increase to $30 million by FY21.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTDepartment of Administration Director Michael DiBiase told press and staff that the budget is about "investing in growing jobs, with no broad based tax increases, while maintaining a safety net for Rhode Islanders most in need."
DiBiase said that four of the budget's "highlight" areas include the RI Promise initiative, the car tax plan - which Speaker Mattiello has indicated he might not think goes far enough, "record investments in K-12 spending," and the remote sales tax proposal.
"Online sales and the fact that online sellers do not collect sales tax has created a structural problem for Rhode Island's budget — our sales taxes have been flat," said DiBiase of the tax that Amazon collects in 33 states, but not Rhode Island. "We think mostly due to online sales, we’re able to capture the growth. The revenue number is $35 million dollars — it improves our structural deficit problem. It’s an important fiscal development."
Budget Details Emerging
The Administration touted on Thursday that the changes to the car valuations will reduce total car tax bills by "about $58 million in calendar year 2018. The state will reimburse cities and towns for the revenue loss.
The Governor formally submitted her proposal to increase the state's minimum wage from $9.60 an hour to $10.50 and hour -- and increased penalties for labor law violations that the administration states will generate $775,000 in revenues.
In addition, the Governor proposed a manufacturing investment tax credit of $3.25 million focusing on adding new equipment and adding jobs; Raimondo put forth moving $1.5 million from the "Wavemaker" fund that was to provided tax credits for repayment of student loans to a First Wave "Closing Fund" to provide state officials with "flexibility when working with business interested in locating to or expanding in Rhode Island."
Raimondo has proposed adding 8 more DMV staff to address wait times, and merging the EMA into DPS to provide for a "single, consolidated agency focused on protecting Rhode Island," with a civilian Department head.
Related Articles
- Raimondo Orders Expanded DHS Hours, Staff to Address Ongoing UHIP Problems
- RI Federation of Teachers Urges Raimondo to Oppose Charter School Expansion in New Campaign
- Fecteau: Raimondo Deserves a Credible Primary Opponent
- Raimondo Administration Refuses to Answer Questions About Wexford Deal and Brown’s Rent
- Horowitz: Raimondo’s Economic Development Strategy Paying Big Dividends
- Raimondo Administration: Public Profit Over Public Service
- Gov. Raimondo’s Chief-of-Staff Smiley Owns Company Fundraising for Elorza
- Riley: Raimondo’s Biggest Problem is Providence
- UPDATED: Raimondo Administration Continues Fight To Block Release of 38 Studios Documents
- Raimondo’s 38 Studios Strategy: Bad Judgment, Bad Advice, or Just Good Ole RI Cronyism
- Could Pell Beat Raimondo in a Democratic Primary in RI - Like Sanders Beat Clinton?
- Raimondo, Elorza Refuse Comment on Donations from Construction Co. Hit by Feds
- Robert Whitcomb’s Digital Diary: Raimondo Luring Jobs at a Price
- Questions Arise Over Raimondo’s Free Tuition Proposal
- Raimondo’s UHIP “Decisiveness” Four Months Too Late - Leaders Blame Gov & Roberts
- Read Raimondo’s State of the State Address—2017
- Battle Looming Between Raimondo, Mattiello on RI Car Tax Repeal
- Raimondo Lifts Line, “The Hardest Part of College Shouldn’t Be Paying for It” from Clinton
- Raimondo to Oust DePena, Guertin Over UHIP Debacle
- NEW: Raimondo Taps Ohio Doctor to Head DCYF
- Top RI Progressives Blast Raimondo for Choice of DNC Chair and Corporate Subsidies
- Raimondo’s 195 Wexford Job Claims Are False, According to a GoLocal Investigation
- Governing Magazine Says Raimondo one of the Most Vulnerable Governors in U.S.
- Raimondo Administration Criticized for Inflated Wexford Job Numbers
- Elorza’s Budget Hits Providence Homeowners, Gives Relief to Car Owners
- Elorza’s Budget Avoids Facing Fiscal Realities for Providence
- Moore: Elorza’s Budget Doesn’t Match His Rhetoric
- Riley: RI Pension Shortfall Far Outweighs Budget Surplus
- Providence Budget at Risk Due to Fire, Questions Over Tax Base
- Herb Weiss: Obama’s Budget DOA, Thanks to GOP Gridlock
- RI’s Budget-Setting Process Ranked 7th Best in Country
- Biggest Winners and Losers in Raimondo’s FY17 Budget Proposal
- Raimondo Proposes More Than Half Billion Dollars in Bonds in Budget Proposal
- New Budget and Fantasy Sports Legislation: This Week at The State House
- Sides Spar After Prov. City Council Announces Tax Cuts in Upcoming Budget
- RI Center for Freedom & Prosperity Blasts Proposed 2017 RI Budget
- Surprise Last Minute Changes in RI House Budget for FY17
- Speaker Mattiello Withdraws Controversial Budget Article
- Efforts to Grow RI’s Renewable Energy Rescued from Ill-Fated Budget Article with New Bill
- Providence City Council Gives Final Approval to FY17 Budget
- The Budget Bill & Ethics Reform: This Week at the State House
- Mayor’s Office Salaries Up $300K as Providence Budget Gets First Passage
- House Minority Caucus Rips Democratic Budget
- Winners and Losers: RI Fiscal Year 2017 House Finance Budget
- Community Service Grants, Charter School Funding Scrutinized at RI House Budget Briefing
- 2017 Budget Bill Approved & Patent Troll Legislation Passed: This Week at the State House
- Moore: House Budget Punishes Charter School Success
- Guest MINDSETTER™ Sen. Sheehan: Raimondo’s Free Tuition Proposal Makes RI an Educational Leader
