Rhode Island levies fewer taxes than in past

A recent report could make the Ocean State a more appealing destination for movers.

Rhode Island has been steadily lowering its income tax in an effort to make itself more competitive with other states, according to a report by the Rhode Island Public Expenditure Council. Using data from 2008, the most recent fiscal year available, the report indicated that the state's total tax burden ranked 17th nationally, an improvement over past years. Just two years ago, Rhode Island's total tax burden ranked 10th most expensive in the nation.

The state's income tax collected decreased 7 percent from 1998 to 2008, said the report. Still, property taxes increased over the past decades, mainly because "Every New England state relies more heavily on the property tax to support state and local government," said RIPEC.

Major policy changes in the past year helped influence the lower ranking, RIPEC executive director John Simmons told the Providence Journal. "As long as we stay the course and not make any more broad-based tax adjustments, the state should continue to lower its tax burden."

That could be welcome news for anyone who's had an eye towards moving to the country's smallest state.

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