RI House to vote on state budget plan

House lawmakers planned to vote on the proposal late Thursday after what’s likely to be a long debate.

The budget plan for the fiscal year beginning July 1 would impose the state’s 7 percent sales tax on pet grooming, car washes, taxi fares and items of clothing or footwear costing $250 or more. It would also authorize tolls on the Sakonnet River Bridge.

The legislation would raise cigarette taxes by 4 cents to $3.50 per pack. Rhode Island has one of the highest tobacco tax rates in the nation; the national average is $1.46 per pack.

Local schools would receive $31 million more than this year, $11 million of which would go to underfunded districts around the state.

The budget would also restore nearly $10 million in state and federal funding for services for the developmentally disabled. Lawmakers cut $24 million in state and federal funds for the services last year.

Lawmakers who crafted the budget balked at Gov. Lincoln Chafee’s proposal to raise the state’s 8 percent tax on restaurant meals. That proposal faced sharp opposition in the General Assembly after restaurant owners warned higher taxes would hurt business.

All told the new sales taxes would go into effect in October and generate about $12 million annually.

More than 20 car wash workers stood outside the House chambers to protest the proposed tax on their livelihood.

Dean Perdikakis, owner of four car washes in Providence, East Providence and Pawtucket, said the tax will send many of his customers to his competitors a few miles away in Massachusetts.

“Three of my businesses are a mile from Massachusetts,” he said. “They’re putting jobs at risk.”

Lawmakers could make big changes to the proposal before voting on it.

House endorsement of the budget plan would send the legislation to the Senate.

Lawmakers are expected to conclude their annual session shortly after approving a spending plan.