Projo Biz Blog

BOSTON (AP) -- House lawmakers overwhelmingly backed a plan to raise the state sales tax from 5 percent to 6.25 percent late Monday, despite a last-minute veto threat from Governor Patrick.
By a 108-to-51 vote, lawmakers approved the plan pushed by House Speaker Robert DeLeo, D-Boston, which supporters say would raise an additional $900 million annually to help balance the commonwealth's budget.
Just moments before the House was set to begin the debate, Patrick sent a letter to all lawmakers threatening the veto unless they first approved a series of ethics, pension and transportation reform measures.
Under the plan approved by the House, about a third of the proposed increase, $275 million, would help the state's deteriorating transportation system. Another $200 million would be returned to cities and towns in local aid.
Patrick has proposed his own series of tax increases, including hiking the state gas tax by 19 cents per gallon, expanding the sales tax to include alcohol, candy and soda, and allowing local communities to increase taxes on restaurant meals and hotel rooms.
The sales tax rate in Rhode Island currently stands at 7 percent.

 Tags  Governor Patrick Massachusetts taxes Rhode Island taxes in New England

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