Guest MINDSETTER Sen. James Sheehan: Cut Franchise Tax to Attract More Start-Up Business to RI
Senator James C Sheehan, Guest MINDSETTER™
Guest MINDSETTER Sen. James Sheehan: Cut Franchise Tax to Attract More Start-Up Business to RI
That is why this year I have again introduced legislation that would suspend the imposition of the minimum business corporation tax of $500, for a period of three years from the date a business incorporates with the Secretary of State. The legislation is specifically intended to apply to start-up businesses in the state, as well as new businesses coming to Rhode Island. It is designed to support new companies that may not, in the first few years of operating, have achieved profitability.
We talk about wanting to make Rhode Island a good place to open and run a business. We talk about eliminating impediments to businesses, to help them grow and succeed and create jobs for Rhode Islanders. Let’s stop talking about it and do something concrete that will truly be beneficial to small and start-up companies.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTUnder existing state tax laws, all Rhode Island businesses are billed a minimum $500 per year corporations tax. The bill I have introduced this year (2015-S 0113) would eliminate that bill for first three years a company operates in Rhode Island. It is intended, primarily, to help smaller, start-up companies, the kind that we have been trying to attract through various reforms and business initiatives that have been enacted into law the past few years. Companies deciding Rhode Island is the place they want to do business shouldn’t, upon opening their doors, find a tax bill from the very state that urged them to do business here. That’s money a new company owner could better use to build that business.
Tax breaks, obviously, mean less revenue coming into the state, but I think we need to weigh the potential good that would come from extending a three-year moratorium on this fee to new businesses. Finding a way to boost start-up business, to help them grow into a success and a job creator, will have good long-term benefits for the state. If we can help companies grow here and help provide more jobs for Rhode Islanders, I think our economy will make up many times more than that $500 yearly charge.
Reducing the cost for small businesses – those that are placing their trust, and their investments, in Rhode Island – must be a goal if we want to improve our state’s business climate. I believe my legislation is a reasonable step toward that goal.
The Highest Taxed Communities for 2015
#39 New Shoreham
FY 2015 Tax Rates Per $1,000 in Value
Residential: $5.34
Commercial: $5.34
Personal Property: $5.34
Motor Vehicle: $9.75
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $1,148.10
For a 2008 Honda Accord: $147.71
Total Taxes as a % of Median Income:1.43%
Note: Real property is assessed at 80 percent of value. This is reflected in the community's ranking.
#38 Little Compton
FY 2015 Tax Rates Per $1,000 in Value
Residential: $5.64
Commercial: $5.64
Personal Property: $11.28
Motor Vehicle: $13.90
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $1,212.60
For a 2008 Honda Accord: $210.59
Total Taxes as a % of Median Income: 1.56%
#37 Jamestown
FY 2015 Tax Rates Per $1,000 in Value
Residential: $8.75
Commercial: $8.75
Personal Property: $8.75
Motor Vehicle: $14.42
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $1,881.25
For a 2008 Honda Accord: $218.46
Total Taxes as a % of Median Income: 2.46%
#36 Charlestown
FY 2015 Tax Rates Per $1,000 in Value
Residential: $9.90
Commercial: $9.90
Personal Property: $9.90
Motor Vehicle: $13.08
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $2,128.50
For a 2008 Honda Accord: $198.16
Total Taxes as a % of Median Income: 3.20%
#35 Bristol
FY 2015 Tax Rates Per $1,000 in Value
Residential: $13.06
Commercial: $13.06
Personal Property: $13.06
Motor Vehicle: $17.35
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $2,807.90
For a 2008 Honda Accord: $262.85
Total Taxes as a % of Median Income: 5.04%
Note: Bristol had a revaluation or statistical update effective December 31, 2013
#34 Narragansett
FY 2015 Tax Rates Per $1,000 in Value
Residential: $10.04
Commercial: $15.06
Personal Property: $15.06
Motor Vehicle: $16.46
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $2,158.60
For a 2008 Honda Accord: $249.37
Total Taxes as a % of Median Income: 3.58%
#33 Westerly
FY 2015 Tax Rates Per $1,000 in Value
Residential: $10.64
Commercial: $10.64
Personal Property: $10.64
Motor Vehicle: $29.67
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $2,287.60
For a 2008 Honda Accord: $449.50
Total Taxes as a % of Median Income: 4.64%
#32 Portsmouth
FY 2015 Tax Rates Per $1,000 in Value
Residential: $15.80
Commercial: $15.80
Personal Property: $15.80
Motor Vehicle: $22.50
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $3,397.00
For a 2008 Honda Accord: $340.88
Total Taxes as a % of Median Income: 5.10%
Note: Motor vehicles are assessed at 70 percent of value. This is reflected in the community's ranking.
#31 South Kingstown
FY 2015 Tax Rates Per $1,000 in Value
Residential: $15.48
Commercial: $15.48
Personal Property: $15.48
Motor Vehicle: $18.71
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $3,328.20
For a 2008 Honda Accord: $283.46
Total Taxes as a % of Median Income: 4.91%
#30 Newport
FY 2015 Tax Rates Per $1,000 in Value
Residential: $12.06
Commercial:$16.72
Personal Property: $16.72
Motor Vehicle: $23.45
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $2,592.90
For a 2008 Honda Accord: $355.27
Total Taxes as a % of Median Income: 5.11%
#29 Middletown
FY 2015 Tax Rates Per $1,000 in Value
Residential:$16.07
Commercial: $21.34
Personal Property: $16.07
Motor Vehicle: $16.05
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $3,455.05
For a 2008 Honda Accord: $243.16
Total Taxes as a % of Median Income: 5.23%
#28 Exeter
FY 2015 Tax Rates Per $1,000 in Value
Residential: $14.63
Commercial: $14.63
Personal Property: $14.63
Motor Vehicle: $32.59
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $3,145.45
For a 2008 Honda Accord: $493.74
Total Taxes as a % of Median Income: 3.82%
#27 Tiverton
FY 2015 Tax Rates Per $1,000 in Value
Residential: $19.30
Commercial: $19.30
Personal Property: $19.30
Motor Vehicle: $19.14
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $4,149.50
For a 2008 Honda Accord: $289.97
Total Taxes as a % of Median Income: 6.46%
#26 North Kingstown
FY 2015 Tax Rates Per $1,000 in Value
Residential: $18.91
Commercial: $18.91
Personal Property: $18.91
Motor Vehicle: $22.04
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $4,065.65
For a 2008 Honda Accord: $333.91
Total Taxes as a % of Median Income: 5.49%
#25 Richmond
FY 2015 Tax Rates Per $1,000 in Value
Residential: $20.94
Commercial: $20.94
Personal Property: $20.94
Motor Vehicle: $22.64
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $4,502.10
For a 2008 Honda Accord: $343.00
Total Taxes as a % of Median Income: 5.88%
Notes:
1. Motor vehicles are assessed at 80 percent of value. This is reflected in the community's ranking
2. Richmond had a revaluation or statistical update effective Dec. 31, 2013
#24 Hopkinton
FY 2015 Tax Rates Per $1,000 in Value
Residential: $20.64
Commercial: $20.64
Personal Property: $20.64
Motor Vehicle: $21.18
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $4,437.60
For a 2008 Honda Accord: $320.88
Total Taxes as a % of Median Income: 7.13%
Note: Hopkinton had a revaluation or statistical update effective Dec. 31, 2013
#23 Cumberland
FY 2015 Tax Rates Per $1,000 in Value
Residential: $17.08
Commercial: $17.08
Personal Property: $29.53
Motor Vehicle: $19.87
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $3,672.20
For a 2008 Honda Accord: $301.03
Total Taxes as a % of Median Income: 5.42%
Note: Cumberland had a revaluation or statistical update effective Dec. 31, 2013
#22 Coventry
FY 2015 Tax Rates Per $1,000 in Value
Residential: $20.40
Commercial: $24.58
Personal Property: $20.40
Motor Vehicle: $18.75
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $4,386.00
For a 2008 Honda Accord: $284.06
Total Taxes as a % of Median Income: 7.12%
Note: Coventry had a revaluation or statistical update effective Dec. 31, 2013
#21 Warren
FY 2015 Tax Rates Per $1,000 in Value
Residential: $20.07
Commercial: $20.07
Personal Property: $20.07
Motor Vehicle:$26.00
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $4,315.05
For a 2008 Honda accord: $393.90
Total Taxes as a % of Median Income: 8.62%
#20 East Greenwich
FY 2015 Tax Rates Per $1,000 in Value
Residential: $23.26
Commercial: $23.26
Personal Property: $23.26
Motor Vehicle: $22.88
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $5,000.90
For a 2008 Honda accord: $346.63
Total Taxes as a % of Median Income: 5.48%
#19 Burrillville
FY 2015 Tax Rates Per $1,000 in Value
Residential: $18.88
Commercial: $18.88
Personal Property: $18.88
Motor Vehicle: $40.00
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $4,059.20
For a 2008 Honda Accord: $606.00
Total Taxes as a % of Median Income: 7.01%
#18 Barrington
FY 2015 Tax Rates Per $1,000 in Value
Residential: $18.30
Commercial: $18.30
Personal Property: $18.30
Motor Vehicle: $42.00
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $3,934.50
For a 2008 Honda Accord: $636.30
Total Taxes as a % of Median Income: 4.43%
#17 West Greenwich
FY 2015 Tax Rates Per $1,000 in Value
Residential: $22.55
Commercial: $22.55
Personal Property:$33.85
Motor Vehicle: $19.02
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $4,848.25
For a 2008 Honda Accord: $288.15
Total Taxes as a % of Median Income: 6.36%
Notes:
1. Does not include rate for vacant land which is $16.07
2. West Greenwich has a homestead exemption
3. West Greenwich had a revaluation or statistical update effective Dec. 31, 2013
#16 Foster
FY 2015 Tax Rates Per $1,000 in Value
Residential: $21.06
Commercial: $21.06
Personal Property: $28.96
Motor Vehicle: $36.95
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $4,527.90
For a 2008 Honda Accord: $559.79
Total Taxes as a % of Median Income: 6.26%
#15 Scituate
FY 2015 Tax Rates Per $1,000 in Value
Residential: $18.98
Commercial: $21.94
Personal Property: $40.38
Motor Vehicle: $30.20
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $4,080.70
For a 2008 Honda Accord: $457.53
Total Taxes as a % of Median Income: 5.52%
Note: Motor vehicles are assessed at 95 percent of value. This is reflected in the community's ranking.
#14 North Smithfield
FY 2015 Tax Rates Per $1,000 in Value
Residential: $16.02
Commercial: $17.77
Personal Property: $42.80
Motor Vehicle: $37.62
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $3,444.30
For a 2008 Honda Accord: $569.94
Total Taxes as a % of Median Income: 5.21%
#13 Glocester
FY 2015 Tax Rates Per $1,000 in Value
Residential: $21.77
Commercial: $24.74
Personal Property: $43.34
Motor Vehicle: $24.37
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $4,680.55
For a 2008 Honda Accord: $369.21
Total Taxes as a % of Median Income: 6.31%
Note: Glocester had a revaluation or statistical update effective Dec. 31, 2013
#12 Lincoln
FY 2015 Tax Rates Per $1,000 in Value
Residential: $23.57
Commercial: $26.94
Personal Property: $37.02
Motor Vehicle: $30.66
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $5,067.55
For a 2008 Honda Accord: $464.50
Total Taxes as a % of Median Income: 7.33%
Note: Lincoln Has a homestead exemption.
#11 Warwick
FY 2015 Tax Rates Per $1,000 in Value
Residential: $20.06
Commercial: $30.09
Personal Property: $40.12
Motor Vehicle: $34.60
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $4,312.90
For a 2008 Honda Accord: $524.19
Total Taxes as a % of Median Income: 7.93%
#10 West Warwick
FY 2015 Tax Rates Per $1,000 in Value
Residential:
- For apartments with 6+ units: $36.28
- For Two to Five Family buildings: $36.45
- For Single family homes: $25.3
Commercial: $30.85
Personal Property: $40.13
Motor Vehicle: $28.47
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $5,458.85
For a 2008 Honda Accord: $431.32
Total Taxes as a % of Median Income: 11.46%
Note: For rankng purposes, an average of the three residential rates was used.
#9 Smithfield
FY 2015 Tax Rates Per $1,000 in Value
Residential: $17.13
Commercial: $17.13
Personal Property: $59.70
Motor Vehicle: $39.00
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $3,682.95
For a 2008 Honda Accord: $590.85
Total Taxes as a % of Median Income: 5.89%
#8 Cranston
FY 2015 Tax Rates Per $1,000 in Value
Residential: $22.84
Commercial: $34.26
Personal Property: $34.26
Motor Vehicle: $42.44
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $4,910.60
For a 2008 Honda Accord: $642.97
Total Taxes as a % of Median Income: 9.45%
#7 East Providence
FY 2015 Tax Rates Per $1,000 in Value
Residential: $22.95
Commercial: $25.40
Personal Property: $56.67
Motor Vehicle: $37.10
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $4,934.25
For a 2008 Honda Accord: $562.07
Total Taxes as a % of Median Income:11.09%
Notes:
1. Rates are for FY 2014
2. East Providence has homestead exemptions
#6 Johnston
FY 2015 Tax Rates Per $1,000 in Value
Residential: $28.75
Commercial: $28.75
Personal Property: $59.22
Motor Vehicle: $41.46
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $6,181.25
For a 2008 Honda Accord: $628.12
Total Taxes as a % of Median Income: 11.99%
Note: Johnston has homestead exemptions
#5 Pawtucket
FY 2015 Tax Rates Per $1,000 in Value
Residential: $23.06
Commercial: $30.88
Personal Property: $52.09
Motor Vehicle: $53.30
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $4,957.90
For a 2008 Honda Accord: $807.50
Total Taxes as a % of Median Income: 14.28%
#4 Woonsocket
FY 2015 Tax Rates Per $1,000 in Value
Residential: $35.94
Commercial: $39.99
Personal Property: $46.58
Motor Vehicle: $46.58
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $7,727.10
For a 2008 Honda Accord: $705.69
Total Taxes as a % of Median Income: 21.99%
Note: Woonsocket has homestead exemptions
#3 North Providence
FY 2015 Tax Rates Per $1,000 in Value
Residential: $27.94
Commercial: $34.68
Personal Property: $69.91
Motor Vehicle: $41.95
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $6,007.10
For a 2008 Honda Accord: $635.54
Total Taxes as a % of Median Income: 13.04%
Notes:
1. North Providence has homestead exemptions
2. North Providence had a revaluation or statistical update effective Dec. 31, 2013
#2 Providence
FY 2015 Tax Rates Per $1,000 in Value
Residential:
- For owner-occupied residential property: $19.25
- For non-owner-occupied residential property: $33.75
Commercial: $36.75
Personal Property: $55.80
Motor Vehicle: $60.00
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $4,138.75
For a 2008 Honda Accord: $909.00
Total Taxes as a % of Median Income: 13.20%
Note: For ranking purposes, the average of two residential rates was used
#1 Central Falls
FY 2015 Tax Rates Per $1,000 in Value
Residential: $27.26
Commercial: $39.48
Personal Property: $73.11
Motor Vehicle: $48.65
Tax Cost for Residents
Taxes for a Single Family Home Valued at $215,000: $5,860.90
For a 2008 Honda Accord: $737.05
Total Taxes as a % of Median Income: 22.54%
Note: Central Falls has homestead exemptions
