Gives customers and restaurants a welcome break
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“This is a bill to help boost small businesses,” said
Representative Cotter (D-Dist. 39, Exeter, Richmond, Hopkinton). “Mom-and-pop
businesses make up a substantial portion of the restaurant industry. A tax-free
week is a great way to encourage people to visit a restaurant they’ve never
tried, hopefully one they’ll want to visit more often. This will put more money
directly into the hands of servers and small business owners alike and
encourage Rhode Islanders to enjoy the many fantastic restaurants we are fortunate
to have all over the state.”
The legislation (2026-H 8512), which Representative Cotter introduced May 1,
would establish one sales tax-free week in the summer and one in the winter for
restaurants statewide. The specific dates would be determined by the General
Assembly.
The tax holiday weeks could essentially create statewide
“Restaurant Weeks” which several communities in Rhode Island currently
organize. Such weeks usually include special menus and deals to entice
customers who might not otherwise visit.
The legislation is supported by the Rhode Island Hospitality
Association.
“Rhode Island’s hospitality industry is an economic engine for our state, supporting thousands of jobs, driving tourism and creating vibrant downtowns and main streets in every community. H8512 is a creative thinking approach to giving restaurants and consumers a meaningful boost during designated summer and winter restaurant weeks,” said Ryan J. Moot, manager of government affairs at the Rhode Island Hospitality Association.
“By temporarily
exempting food and beverage purchases from the sales tax, this legislation
would encourage more people to dine out, explore local restaurants and support
small businesses across Rhode Island. These restaurant weeks have the potential
to kickstart economic activity during key times of the year while showcasing
the incredible talent and diversity of Rhode Island’s dining scene.”
