AP News

New sales taxes to start soon in RI

PROVIDENCE, R.I. (AP) — Rhode Island will soon impose new sales taxes on pet grooming and boarding, taxi fares and clothing costing more than $250.

The taxes take effect Monday.

State lawmakers voted in June to impose the state's 7 percent sales tax on the items to raise about $12 million in new revenue each year.

The sales tax on pet care services will apply to pet boarding, grooming, sitting and training.

The tax on taxicabs will also apply to limousines and charter buses.

Any item of clothing or footwear costing more than $250 will be subject to the new tax on luxury clothing. Only the amount above $250 will taxed.

Pet groomers and taxi drivers have protested the new taxes, saying they will hurt business and reduce tips from customers.

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