Sheehan Applauds Arts Sales Tax Exemption Beginning Dec. 1

Letter To The Editor, from Sen. James Sheehan (Dist. 36-N.K., Narr.):

A study commissioned two years ago by the New England Foundation for the Arts found that, in aggregate, every dollar spent by a Rhode Island nonprofit arts and cultural organization resulted in $2.10 in sales for businesses in Rhode Island. Moreover, the study found, every job provided by a Rhode Island nonprofit arts and cultural organization became 1.5 jobs for workers across the state.

For years I have introduced legislation in the General Assembly to establish a Wickford Art District where, as in other communities where such districts have been created, artists and galleries would be exempt from the state sales tax on goods and works produced and sold in that designated area.

When my legislation did not pass, I began to press the idea of establishing a statewide arts district. The idea soon took root and began to pick up momentum. Under the strong leadership of Senate President M. Teresa Paiva Weed along with other state leaders and stakeholders, including House Speaker Gordon D. Fox and Gov. Lincoln Chafee, the “State of the Arts” was successfully enacted into law as part of the state budget during the 2013 session.

Starting on December 1st of this year, there will be a sales tax exemption statewide on the purchase and sale of a variety of original art work. Approval of this measure in the state budget acknowledges something that I and others have long believed – that the arts are a valuable economic tool and can help increase tourism, job creation and the revitalization of our communities. This positive and forward-thinking action will make Rhode Island a true “State of the Arts” and has the potential to make the arts a powerful, thriving economic engine for the state.

There is ample proof that, in Rhode Island, the arts are not just about or for dilettantes. A conservative estimate by Americans for the Arts reports more than 3,200 arts-related businesses in the Ocean State, employing about 13,500 people. Artists and artisans bring life and vibrancy and visitors to our communities and our state; visitors who may come looking for art but who find many other shops and stores that benefit from the influx of consumers. Helping and supporting and promoting an active artistic community across our state though the sales tax exemption benefits our state and its cities and towns, culturally and economically.

Making this a true “State of the Arts” is an outstanding opportunity for Rhode Island to gain an advantage over other states by becoming the only state in the nation to provide a sales tax exemption on art. As I told a roomful of artists at a recent workshop, it is my hope that the program produces jobs, enhances tourism and enriches our lives with works that speak to our common humanity.