Attention Rhode Island business owners

Tuesday, December 28, 2004

Are you all aware of the legislation passed by the members of the Rhode Island General Assembly in regards to "MED"(Municipal economic development) zones? You may have read bits and pieces of the proposed zone that is now in the planning stages in Woonsocket, but do you know exactly how this legislation will effect your business? This is how it will work. Any business that is located in a MED zone will not be bound by the same Rhode Island sales tax laws as the rest of the state. While we are charging 7% (because that is the tax rate we are all forced to charge by law) the businesses located in the MED zones will only be charging 3.5%. The tax revenues generated at this rate will then go directly to the city in which the zone is located. The state will not receive any revenue for 10 years, at which time the rate will return to normal. I cannot even imagine what our elected officials were thinking when this was passed.

Apparently, they never gave a thought to the rest of the businesses in the state that will now be at a disadvantage by 3.5% of every sale. What do you think will happen to the smaller companies trying to survive and compete with the "big boxes" that will be located there? I urge you to contact your representatives and senators as soon as possible. Insist that they undo the injustice they are inflicting upon all of us. They need to do the right thing. It is unconstitutional and illegal to pick and choose different sales tax rates for different areas. We should all be on the same playing field in order to compete fairly. I do not have a problem with the 3.5% going directly to the city as long as they charge 7% and give the remaining 3.5% to the state. Woonsocket is the first to initiate one of these zones; your city could be next. Make your voices heard loud and clear before it is too late!

Anne Poirier, President
Beauchemin Lumber Co., Inc.
Woonsocket, RI