Real estate industry execs speak out against RI tax proposal

Members of the real estate industry have begun to speak out against the Rhode Island tax bill proposed by Governor Lincoln Chafee, which would make many of the services frequently used by homeowners taxable, according to the Providence Journal.

The Governor's proposed $7.66 billion budget for the next fiscal year plans to use widespread taxation as a way to make revenues for the state. Though the overall state tax rate would be lowered to 6 percent, it would be implemented on a number of currently tax exempt items, the source says. In addition, certain essentials such as clothing, shoes, food and home heating oil would also receive a 1 percent tax.

Many of the soon-to-be taxed items may hurt homeowners financially, local real estate groups argue. The tax could make already stressful ventures such as moving financially burdensome, as the tax would apply to moving and shipping services as well.

"Homeowners don't even know what is going to happen once this bill passes. It means taxes on their home heating oil. Their water. If a tree falls through their window and they need that window replaced? It's a six-percent tax ... and on and on ... It's unbelievable," Susan Arnold, CEO of the Rhode Island Association of Realtors, told the source.

Governor Chafee's proposed changes have been the subject of much concern since their announcement. However, the tax proposal has raised some of the most concern and has been opposed by the state's North Central Chamber of Commerce.  

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