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RI lawmaker proposes taxing high-priced clothing

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From a slinky cocktail dress to a rich leather coat with fur trim, luxury is what it's all about at F. Bianco in Garden City.

But a proposed sales tax expansion could make high-end goods like these a little more expensive.

Store owner Florence Voccola said she isn't happy about the idea.

"I just think any tax right now is inappropriate," Voccola said.

Under the proposal, shoppers would pay the 7 percent sales tax on any single clothing item over $500. That means a $500 dress would cost an extra $35 and a $1,500 coat would cost an extra $105.

"I think maybe it may even affect the small business owner more than maybe a Walmart or a Target where they have lower priced goods," Voccola said.

Ending the sales tax exemption on clothing in Rhode Island is not a new idea. Gov. Lincoln Chafee proposed taxing clothing and other exempt items at 1 percent during his campaign.

State Sen. Elizabeth Crowley, who represents Central Falls, Pawtucket and Cumberland, introduced the luxury tax bill. She said she believes targeting high-end clothing is a better option.

"You're talking about people who have the ability to pay that tax. If I have my choice, I would vote for that first," Crowley said.

Crowley said people in her district simply can't afford a new 1 percent tax across the board.

"This is another way to bring some income without disturbing the whole of the population, and still allowing families and unemployed people to buy clothing without it being a burden to them," Crowley said.

Under the current law, all clothing is tax-free in Rhode Island, including items like wedding dresses that can costs thousands of dollars.

Voccola said that's a competitive advantage.

"I think that whatever tax Massachusetts has, whatever amount it may be, I think that people are taking the trip over the border here and coming here," Voccola said.

Crowley said Massachusetts already taxes clothing over $175 and that Connecticut taxes anything over $50. She said $500 is a much higher limit.

The bill now heads to the Senate Finance Committee for consideration.

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