Rhode Island
Killed during budget talks, Citizens Bank bill brought back to life • Rhode Island Current
House Speaker K. Joseph Shekarchi assured reporters Friday night that a proposed tax law rewrite requested by Citizens Bank was not dead, despite its glaring absence in the revised fiscal 2025 budget.
Less than 72 hours later, the Warwick Democrat produced the proof: revised legislation authorizing the shift in state bank income tax calculations, with hearings before both chambers’ finance committees Tuesday.
What changed?
“It wasn’t ready,” Shekarchi said, speaking to reporters at the State House Monday afternoon. “Taxation was opposing it. The administration was opposing it. I certainly wasn’t going to put it in the budget for debate. Now, those two House priorities have been met.”
He added, “I wanted to make sure the taxpayer was protected.”
McKee pushes state tax rewrite to keep Citizens Bank rooted in Rhode Island. But will it fly?
The updated companion bills, sponsored by Rep. Joe Solomon, a Warwick Democrat, and Sen. Lou DiPalma, a Middletown Democrat, come after months of behind-the-scenes negotiations between state officials and bank executives dating back before Christmas, Shekarchi said.
The tax change, in essence, offers banks the option to calculate their taxable income based only on in-state sales, replacing the longtime “three-factor” calculation encompassing in-state sales, property and payroll. While not explicitly written for Citizens, the financial services giant has the most to gain from the proposal; unlike other banks in Rhode Island, Citizens makes most of its money from services outside state borders, yet its physical presence and payroll are weighted toward the Ocean State.
Other states, including neighboring Massachusetts, have already moved to a similar tax calculation method, a trend referenced by Mike Knipper, executive vice president and head of property and procurement for Citizens Financial Group Inc., in an April letter to state lawmakers.
Knipper in his letter warned that without a similar tax update in Rhode Island, the company “would strongly consider expanding its corporate footprint and employee base outside of Rhode Island because of differing tax treatment among the states.”
On May 10, Gov. Dan McKee proposed a budget amendment offering up the requested rewrite of the bank income tax calculation, with an estimated $15.6 million in state tax revenue loss for a full fiscal year.
However, McKee’s proposal did not make the cut when lawmakers unveiled their revised fiscal 2025 spending plan on May 31, with Shekarchi citing lack of detail and time to vet the proposal before finalizing the state budget.
Yet Shekarchi also said he would not be responsible for losing one of the state’s top employers, which boasts a 4,200 in-state payroll and a $285 million Johnston headquarters.
Negotiations ramped up in earnest over the last week and half, with Shekarchi texting key players in the tax proposal from the rostrum of the budget debate Friday night. A weekend of closed-door meetings and phone calls later, the deal emerged.
Key to Shekarchi’s change-of-heart was the OK from the Rhode Island Division of Taxation, which had initially expressed concerns with the legislation when first introduced by Solomon in March. Tax officials gave the green light to the revised proposal Sunday, Shekarchi said.
The updated legislation clarifies the way taxes are calculated to avoid double-taxation — one of Citizens’ concerns — and refines the information the state tax division must collect and review, with a report to lawmakers detailing the impact of the tax change due no later than March 2027.
“Citizens is encouraged by recent progress and greatly appreciates the leadership of Governor McKee, Speaker Shekarchi, Senate President Ruggerio and all others involved,” Keith Kelly, president of Citizens Bank Rhode Island, said in a statement. “We look forward to continuing to work closely with the state towards an outcome that is a win for both the business community and Rhode Island.”
Citizens declined to offer further comment Monday.
‘Vigorous and robust debate’
The tax calculation change is still expected to reduce state tax revenue by $7.5 million in tax year 2025, with a forecasted $15 million revenue loss in fiscal 2026. While the policy is not accounted for in the state’s fiscal 2025 budget, there won’t be any cuts or structural imbalances, Shekarchi said.
Instead, the state will take $6.5 million from the $55 million set aside for a supplemental rainy day fund in fiscal 2024, with another $1 million siphoned from the state surplus, to make up for the expected revenue shortfall in fiscal 2025.
“It was a judgment call,” Shekarchi said when explaining his decision to not include the policy change in the fiscal 2025 budget. “I didn’t want this one unsettled article to be the focus of the budget.”
He insisted multiple times, however, that the proposal will have plenty of time for a thorough vetting by lawmakers; the House Committee on Finance hearing Tuesday marks the third time a version of the tax change has been considered, with prior hearings held on Solomon’s bill and the governor’s budget amendment.
“There will be a vigorous and robust debate,” Shekarchi said.
There’s still no guarantee that the hours of closed-door negotiations prevent Citizens from uprooting anyway, Shekarchi acknowledged.
However, he added, “I think Citizens would be hard-pressed to move. They wanted this very badly.”
As for concerns raised by some lawmakers that changing state tax law to benefit one business will set a precedent for other corporations, Shekarchi dismissed the logic.
“In my mind, there’s no precedent,” he said. “Just because you do it for one, doesn’t mean you do it for another.”
McKee and Senate President Dominick Ruggerio also expressed support for the tax deal in statements on Monday, stressing the importance of parity between Rhode Island and Massachusetts, which is scheduled to move to the single-factor tax calculation starting Jan. 1.
Laurie White, president of the Greater Providence Chamber of Commerce, also welcomed the revival of the tax change, having issued an email warning last week when it appeared the policy would not make it into the fiscal 2025 budget.
“Happy to see that all sides are working towards finding a solution,” White said in a text message Monday. “I applaud the progress being made by Gov. Dan McKee, Speaker Shekarchi, President Ruggerio and Citizens.”
If signed into law, the tax change would take effect Jan. 1.
The House Committee on Finance will take up the revised tax change at 3:30 p.m. Tuesday at the State House. The Senate Committee on Finance will follow suit with a hearing on companion legislation Tuesday night.
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PROVIDENCE, R.I. (WLNE) — Tenants of Atlantic Mills announced they had formed the “first commercial tenants union in Rhode Island” on Dec. 21.
The Atlantic Mills Tenants Union was established as an affiliate as a chapter of the Rhode Island Tenants Union, and called for the mill’s current owners, The Howard and Eleanor Brynes Trust, and potential future owners, Robert Berle and Eric Edelman, to “come to the negotiating table in good faith to collectively bargain.”
The union also listed its demands from the owners, which included a 99 year lease term, immediate rent stabilization, and an eviction moratorium that began Dec. 21 and extends until “a collectively bargained agreement can be reached.”
First commercial tenant union in the state! pic.twitter.com/RqNDo3FPYZ
— Olneyville Neighborhood Association (ONA) (@OnaProvidence) December 22, 2024
A response deadline of Dec. 30 was also given.
“The future of Olneyville is at a crossroads,” Olneyville Neighborhood Association Board Chair Cindy Miranda said. “That is why we have taken this historic step and formed the first commercial tenants union in Rhode Island. Our stories, our livelihoods, and our futures are at stake.”
Rhode Island, often referred to as the Ocean State is home to a collection of enchanting towns and villages that embody the allure and history of New England. From picturesque coastal vistas in Narragansett to the delightful, history-laden streets of Pawtuxet Village, these storybook towns provide a wonderful escape for visitors seeking both relaxation and adventure. Whether you are a history buff, a nature aficionado, or a food lover, these towns promise unforgettable experiences that will fill your cup while simultaneously beckoning you back for more.
Bristol
Established in 1681, Bristol is a storybook town known for its charming streets and beautifully preserved architecture. Its peaceful landscapes, historical homes, and vibrant cultural heritage create a whimsical atmosphere that captivates visitors and residents alike.
Begin your visit with a walking tour of the town grid, where you will uncover various historical sites. Highlights include Burnside Memorial Hall, a Richardsonian Romanesque Revival building steeped in early American history, as well as several churches and historic homes.
You have to check out Blithewold. This 45-room mansion set on 33 acres with beautiful gardens and rare plants is a paradise for botanists and horticulturists. Nature enthusiasts will also appreciate a ride along the East Bay Bike Path. This decades-old bike path spans 14.5 miles from Providence to Bristol.
Narragansett
Nestled along the wild Atlantic coastline, Narragansett is a seaside town that provides scenic beauty, New England beach culture, and rich history.
Start your day in the adorable village of Narragansett Pier, which is home to Narragansett Town Beach. With soft sand and rolling waves, this stretch of shoreline is the perfect spot for swimming and sunbathing. After enjoying some of the best clam chowder and/or lobster rolls in New England, head to The Towers. This iconic landmark is all that’s left of the Victorian-era Narragansett Pier Casino. History enthusiasts will also appreciate a visit to the Point Judith Lighthouse, which has been guiding mariners since the 19th century. Snap a couple of photos and get a glimpse into the town’s maritime heritage.
Pawtuxet Village
Nestled along the scenic Pawtuxet River, Pawtuxet Village is a charming community located between Cranston and Warwick, just four miles from downtown Providence. This quaint village is one of the oldest in New England and is absolutely dripping with history.
Perhaps the most significant historical event in the story of this delightful village is the Gaspee Affair, when, in 1772, American colonists protested against British taxation by burning a prominent ship, the HMS Gaspee. Every June, Pawtuxet holds the Gaspee Day Parade to celebrate this pivotal moment leading up to the American Revolution.
Aside from its history, Pawtuxet Village has become known as a hidden culinary gem. Stop by Basta for authentic Italian cuisine or indulge in a sweet (or savory) treat at Crepe Corner. Walk it off with a stroll in Pawtuxet Oxboes Park or a walk along the Pawtuxet River.
Wickford
Wickford, a village located in North Kingstown, boasts a rich maritime history and a thriving arts scene. Begin your visit at Wickford Harbor, where you can take in peaceful views of the boats bobbing in the water and people-watch as local fishermen go about their days. You can also rent a kayak or SUP from the Kayak Center for a different perspective on harbor life.
History buffs will appreciate the well-preserved colonial architecture that characterizes Historic Wickford Village. Admire homes dating back to the 18th century on foot or via a horse-drawn carriage ride with New Deal Horse and Carriage. Be sure to pop into the Wickford Art Association. The organization hosts a variety of exhibits and events year-round, including the annual Wickford Art Festival, a source of pride for the community since 1962.
Just a quick drive from town, you will find Smith’s Castle. This 17th-century historical site hosts the oldest plantation house in the country, where kingly plantation owners and their slaves lived for over a century. It’s part of the Rhode Island Slave History Medallion program, aimed at raising awareness of the injustices of slavery.
East Greenwich
Established in 1677, East Greenwich is a quaint town that combines history with modern allure. For a glimpse into local heritage, visit the Varnum Memorial Armory, constructed in 1913, which houses a museum dedicated to Rhode Island’s military history. Nearby, you can tour the Varnum House Museum, once a gathering place for prominent early American politicians. The New England Wireless & Steam Museum, which showcases the history of wireless communication and steam technology, is also worth a visit.
You can’t miss a trip to Goddard Memorial State Park. Here, you can explore 490 acres of well-kept walking trails, gardens, and picnic areas.
In the summer months, East Greenwich hosts multiple events on its Main Street showcasing local culture and talent. Music on Main, Chalk the Block, and Taste of East Greenwich all present excellent opportunities to experience local artistic and culinary talents.
Newport
Newport is famous for its lively sailing community and, like many towns in the state, its maritime heritage. As you wander through Newport, you will be captivated by the opulent historic mansions from the Gilded Age. Some, including The Breakers and The Marble House, provide guided tours.
For a deep dive into Newport’s love of all things sailing, past, present, and future, visit the Sailing Museum. After you have immersed yourself in exhibits addressing the town’s nautical roots, check out the historic Rose Island Lighthouse.
Newport is an exceptionally bike-friendly town. Rent a bike from Ten Speed Spokes and take in the town’s scenic beauty on two wheels, stopping at a multitude of white sand beaches along the way. When hunger strikes, grab a bite at one of the glorious seafood restaurants on Bowen’s Wharf or Bannister’s Wharf.
If you are in town during the summer, don’t miss the annual Newport Folk Festival (or the Newport Jazz Festival) at Fort Adams State Park. The combination of phenomenal musical performances and views of the imposing 1840s fort is enough to take your breath away.
Watch Hill
Watch Hill is a breathtaking gem of a village in Westerly, Rhode Island. Boston Magazine described this Gilded Age summer colony as “almost absurdly picturesque.” Its white sand beaches, coastal views, and tranquil vibes, removed from the hustle and bustle, have made it a hot spot for iconic figures, ranging from Albert Einstein to Groucho Marx and even Taylor Swift.
Start your trip at The Ocean House. This iconic inn’s pale yellow façade and luxurious accommodations have been welcoming guests since just after the Civil War. Book a stay, throw on your tennis whites for a match or two, and treat yourself to a spa treatment, all while soaking in unforgettable ocean views.
No visit to Watch Hill is complete without plenty of time on the beach. Watch Hill Beach, East Beach, and Weekapaug Beach are all excellent spots for sunbathing and swimming. If you are chasing sunsets, Napatree Point is another top choice.
Before you leave, check out Watch Hill Lighthouse. Built in 1745, the lighthouse and its museum are a great place to take in views of the surrounding waterways and learn about the town’s history. And don’t miss the Flying Horse Carousel. It’s been operating since 1884 and is the ideal place to take the family and cap off your trip.
The fairy-tale towns of Rhode Island draw visitors from near and far. From the colorful galleries and harbor views of Wickford to the bike paths of Newport and the serene shores of Watch Hill, these enchanting destinations promise delightful experiences around every corner. With so much to explore and discover, it’s time to carpe diem and plan your next adventure. So, book your trip and get ready to create unforgettable memories in the heart of Rhode Island!
Rhode Island
Sebastian Thomas saves day for Rhode Island basketball. Here’s what happened vs. Temple
URI coach Archie Miller speaks after Rams beat Temple, 85-79
Led by Sebastian Thomas down the stretch, the Rhode Island Rams end their nonconference schedule with a win over Temple in a holiday tournament.
SPRINGFIELD, Mass. — It wound up being just a one-game absence for Sebastian Thomas due to a foot injury, and how much the University of Rhode Island needs the veteran guard was on full display Saturday evening.
The former Bishop Hendricken standout flashed some ice cold blood in the final seconds against Temple, making the two biggest plays that dropped an old Atlantic 10 rival.
Thomas knocked down a wing 3-pointer that snapped the game’s sixth tie, then came up with a steal on the ensuing possession. The Rams avoided what would have been a painful meltdown in the second half and instead surged into league play off the back of an 85-79 victory at MassMutual Center.
Thomas conjured up a four-point play with 20.8 seconds left to break a 79-79 deadlock, the highlight in his second double-double of the season. He finished with 20 points and 10 assists after missing a victory over Central Connecticut State last time out. URI made relatively routine work of the Blue Devils at the Ryan Center but could have been in serious trouble against the Owls here.
“Sebastian stepped up when it was money time,” URI coach Archie Miller said. “He delivered not only from the foul line and his last shot, but he made plays for others.”
Miller called a timeout with 37.6 seconds left looking to snap a string of three straight missed shots. Thomas drew two defenders off the dribble on the left side, David Green drew two more on a drive into the paint and Thomas drifted open on the wing. He fired a jumper and absorbed some contact on the wrist from Quante Berry, resulting in a four-point play that made it an 83-79 game.
“I was confident,” Thomas said. “I feel like in those situations you just have to make the right pass. I threw it back to (Green), he drove and my guy kind of helped.”
It was a shot reminiscent of the late dagger Thomas plunged into Providence at the Ryan Center to begin the month. The Rams held on for a 69-63 triumph over the Friars. They matched that margin against the Owls, an old league foe that had captured the last seven meetings in the series. Javonte Brown added his own double-double with 21 points and 10 rebounds, helping to author the perfect lead into a New Year’s Eve trip to Duquesne.
“We knew they were a good defensive team,” Brown said. “We also knew the advantage was me on the inside. Shoutout to my teammates for finding me.”
Thomas sealed the victory on the defensive end. Jamal Mashburn Jr. missed a 3-pointer and Shane Dezonie gathered an offensive rebound along the right baseline. Thomas stripped Dezonie from behind and was fouled with 10.1 seconds left, setting up a pair of free throws to close it out.
“My foot is definitely improving,” Thomas said. “I wasn’t 100% going into the game, but I think it was a mindset thing. The team needed me — the team wanted me to play.”
The Rams (11-1) squandered a 16-point lead with 14:54 left and were in danger of absorbing a painful defeat. Jaden House answered a Mashburn drive down the lane with one of his own to make it 77-77, and URI never trailed over the final 2:59. Mashburn entered averaging 20.8 points per game but went just 5-for-20 from the field, as the Rams did just enough to limit other options and survive.
“These guys are probably exhausted from hearing his name,” Miller said. “That’s how much the game plan really kind of stressed what he was doing.”
The Owls (7-5) took a 36-35 edge into halftime before falling in a deep hole. URI was at its sharpest through the opening 5:34 out of the locker room, zipping out to a 56-40 cushion thanks to no turnovers and sizzling shooting. Green’s 3-pointer from the left corner capped an 8-for-9 stretch from the field.
“We looked right,” Miller said. “Guys were really sharing it. Our defense was creating some offense for us. We capitalized.”
The Rams followed by giving the ball away six times in less than six minutes, and Temple built its own momentum. The Owls were 12-for-18 from the field after a 1-for-6 start, and a Mashburn jumper from the right baseline gave them a 72-71 advantage with 5:36 left. Miller called a timeout prior to the ensuing possession and looked to reset.
“You found a way to win 11 games,” Miller said. “They found a way to do it again here tonight.”
bkoch@providencejournal.com
On X: @BillKoch25
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