The political pressure put on the Legislature to reform Municipal Economic Development (MED) Zone legislation is working. MED Zones are blighted or rundown areas designated by legislation passed by the General Assembly. The law creates an Economic Development Zone that discounts the Sales and Use Tax to 3.5 percent versus the 7 percent statewide tax. The state foregoes 50 percent of the Sales and Use Tax and the city keeps the remaining 3.5 percent of the Sales Tax. This creates an immediate competitive disadvantage to the businesses in close proximity to the MED Zone. A retailer that is located outside the MED Zone will not be able to compete with the tax advantages given to those businesses located inside the designated zones.

The House of Representatives is considering acting on legislation that would amend the current MED Zone structure and potentially remove the Sales Tax benefits that harm Rhode Island businesses.

Please take 10 minutes to call your legislators today to urge them to REFORM the current MED Zone structure! Ask them to support small business and remove the competitive disadvantage created by the Sales and Use Tax benefits in the MED Zones.

Step 1: For your Legislator’s contact information:
Call Tracey Leach at the NRLA (800) 292-6752, or E-mail: tleach@nrla.org
OR http://www.sec.state.ri.us/elections/findyourofficials/index.html

Step 2: Contact your State Representative and Senator and ask him/her to:

ACT NOW and REFORM MED Zones!

SUPPORT H.6364: This legislation was introduced by Rep. Picard ( Woonsocket) and requires all businesses to charge the full 7 percent Sales Tax and allows the municipality to retain half of the taxes collected to reinvest in the community.

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