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Rhode Island scraps tax on sightseeing tours

Rhode Island’s unpopular 7 percent sales tax on package and sightseeing tours is being abolished Sunday, the first day of the state’s new fiscal year. Lawmakers approved the tax in the fiscal year ended June 2011 to help shore up the state’s budget. But this year they voted to repeal the tax, which tour operators said was an unfair burden on the tourism industry. Meanwhile, cigarette taxes in Rhode Island are increasing Sunday from $3.46 per pack to $3.50. Other new sales taxes on high-priced clothing, taxi fares, and pet grooming won’t take effect until Oct. 1. (AP)