Friend,
SENATOR MELISSA MURRAY
Making Rhode Island a better place to do business remains a top priority for the Senate, because our work to improve the lives of Rhode Islanders – and the investments we’re making in critical areas like education, housing, infrastructure, and climate action – all depends upon a strong economy.
We’re especially focused on small businesses, which employ more than half of all Rhode Island workers and support tens of thousands of local families. These businesses are an irreplaceable part of the fabric of our neighborhoods and communities, often across generations – and they have faced unprecedented challenges in recent years because of the pandemic.
This week, we moved forward with a proposal to provide critical relief for businesses across our state. Senator Melissa Murray is introducing legislation that would make the first $100,000 of tangible personal property exempt from taxation.
What is the tangible tax? It’s paid to cities on towns by businesses for property other than real estate, such as computer equipment and furnishings.
It’s also extremely onerous, for businesses and municipalities alike. It’s a financial burden and an administrative headache. Many businesses are forced to hire an accountant to navigate the requirements, while monitoring for compliance is a serious administrative challenge for cities and towns.
Under Senator Murray’s proposal, roughly 85 percent of current tangible property taxpayers would no longer have any liability.
To repeat: about 85 percent of businesses would will no longer have to pay a tangible tax to their local city or town. And every business in Rhode Island would receive a tax cut. Cities and towns, meanwhile, would be made whole through state reimbursement.
We are deeply grateful to Senator Murray for taking on this important initiative. She has been a champion on so many issues during her time in the Senate, and we applaud her leadership on this legislation, including her work with the Rhode Island Public Expenditure Council and partners in the business community.
We want companies to invest and grow here in Rhode Island. This proposal will boost the small businesses that help our communities thrive – creating jobs, expanding opportunity, and benefitting us all.
Sincerely,
Donny, Ryan and Maryellen