| 10% meal tax hits wall of opposition
A proposal to increase the state's meal and beverage tax from 8 to 10 percent would be devastating to local restaurant owners and caterers, said the executive director of the local chamber of commerce. ". Customers at Rhode Island restaurants presently pay a 7 percent state sales tax on meals, with an added 1 percent tax that goes to the municipality. 25 percent and Connecticut charges 6. Konicki said the additional tax would put restaurants and catering businesses in area at a competitive disadvantage. A group of objectors took their concerns to the State House as the Senate and House finance committees discussed Chafee's budget Tuesday and Wednesday night. The individual customer who buys the grinder or fried chicken at the counter will feel the increase, said Chris Spino of Dunn's Corners Market. Spino said contracts for catered events contain clauses for price increases, but many casual customers would there and then notice the higher prices. The tax would be higher than similar ones in neighboring states, making it harder for border businesses to compete. Angela Thoman, business manager for Paddy's Beach Restaurant the restaurants in Westerly as people would be more apt to choose a restaurant over the border, in Connecticut, where the tax is only 6. If a caterer or a restaurant owner has to raise prices because of a tax increase, it could create a hardship, Konicki said, especially because prices have also gone up for sugar, beef, pork, seafood and cooking oil. 9 billion budget. 35 percent. Opponents of the tax increase say restaurants that lower their prices to offset the tax increase would find it difficult to keep in business. Chafee said the all in addition $40 million in revenue raised by the tax would be committed to public schools. Lincoln Chafee's $7. |
Friday, 9 March 2012
10% meal tax hits wall of opposition
