RI boosts cigarette tax revenue, thanks to Mass.
PROVIDENCE, R.I. (AP) — Rhode Island is collecting more in cigarette tax revenue and credit goes to Massachusetts’ slightly higher taxes.
The Providence Journal reports (http://bit.ly/19vyQmO ) that from August through October, the first three months that the higher Massachusetts tax was in effect, Rhode Island collected $2.7 million more in cigarette tax revenue than state officials expected.
In August, Massachusetts raised its cigarette tax from $2.51 to $3.51 per pack. That’s one penny more than in Rhode Island.
The state has raised its cigarette-tax revenue estimate by $5.6 million, or 4.3 percent, for the fiscal year that began July 1. If the trend continues, the increase could be closer to $10 million.
State Rep. Patricia L. Morgan, a West Warwick Republican, says Rhode Island should cut its 7-percent sales tax to keep consumers’ money in the state.
Information from: The Providence Journal, http://www.providencejournal.com