Politics & Government

Walsh, Weed Bill Incorporates 'State of the Arts' Into Final Fiscal 2014 Budget

The General Assembly has given the green light to a statewide sales tax exemption on the purchase and sale of original art, which passed after the Senate approved the final version of the Fiscal Year 2014 budget.

The proposal, which President of the Senate M. Teresa Paiva Weed (D-Dist. 13, Newport, Jamestown) and Rep. Donna Walsh (D-Dist. 36, Charlestown, Westerly, South Kingstown, New Shoreham) introduced earlier in the year in the form of legislation (2013-S 07432013-H 5844), recognizes that the arts are a valuable economic tool and can help increase tourism, job creation and the revitalization of communities and local entrepreneurship. Lawmakers removed from the budget a sunset clause which would have ended the exemption in March 2015.

According to a conservative estimate by Americans for the Arts, there are 3,248 arts-related businesses in Rhode Island registered with Dun & Bradstreet. These businesses employ 13,445 workers. The total does not include nonprofit arts groups not registered with D&B, or their employees or individual artists.

Find out what's happening in Narragansett-South Kingstownwith free, real-time updates from Patch.

“The arts are a powerful and growing economic engine for our state,” said President Paiva Weed. “Rhode Island artists help to create jobs within creative industries, support tourism and enhance auxiliary industries such as design and visual arts, which are critical for the success of the state’s knowledge economy. Further positioning Rhode Island as a ‘State of the Arts’ will help us to build upon the economic success of the creative sector.”

In February, President Paiva Weed was joined by Governor Lincoln D. Chafee and Speaker of the House Gordon D. Fox in hosting the first Rhode Island Arts Charrette. The event, funded by the Rhode Island Foundation and held at Fidelity Investments’ Smithfield campus, brought the arts community together with leaders in government, business, academia and the nonprofit sector to discuss ways to make Rhode Island a “State of the Arts.” The statewide arts district was among the ideas discussed at the charrette.

Find out what's happening in Narragansett-South Kingstownwith free, real-time updates from Patch.

Rhode Island also plays host to one of America’s finest arts schools, the Rhode Island School of Design (RISD). It is the belief of Representative Walsh that the newly-approved initiative will help the state retain the valuable talents of the school’s graduates.

“Other states don’t have this incredible resource to tap into,” Representative Walsh said. “We want RISD students to stay, create and make their dreams come alive in our state. This exemption is rooted in the example set by our experimental arts districts already in existence. The popularity of these districts has grown because our cities and towns recognize the benefits of incorporating artists and galleries into the patchwork of our image.”

According to a 2011 study commissioned by the Rhode Island Foundation for the Arts, in aggregate, every dollar spent by a Rhode Island nonprofit arts and cultural organization became $2.10 in sales for businesses in Rhode Island. Furthermore, every job provided by a Rhode Islandnonprofit arts and cultural organization became 1.5 jobs for workers across the state.

Since 1998, the establishment of arts districts where “one-of-a-kind limited production” works of art may be sold exempt from state sales tax has resulted in an increased presence for the arts in designated districts, with benefits to local communities. It’s a unique opportunity for Rhode Island to shape history and to gain an advantage over other states by becoming the first and only state in the country to declare a statewide sales tax exemption on art.


Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.

We’ve removed the ability to reply as we work to make improvements. Learn more here