Rhode Island State Laws
✅ Law #1: Kratom Regulation & Sales Licensing (S.B. 0792 / H.B. 5565-A)
Statute / Bill: Senate Bill 0792 / House Bill 5565-A (“Rhode Island Kratom Act”) (Rhode Island Division of Taxation)
Effective: April 1, 2026 for most provisions. (Rhode Island Division of Taxation)
📝 What it does (5th-grade level)
Makes kratom (a plant product sometimes used like a stimulant or pain-reliever) legal under state law, but regulates it strictly: any manufacturer, distributor, importer or retailer must have a license. (Rhode Island Division of Taxation)
All sales must come through licensed parties; unlicensed kratom products can’t be sold. (Rhode Island Division of Taxation)
💰 Cost to taxpayers / state budget
The state will need to set up licensing, enforce rules, oversight by the Department of Health, etc. That’s some administrative cost. (Rhode Island Division of Taxation)
License fees might recoup some costs. Retailers/distributors pay to be licensed.
👥 Who it helps / affects
Helps: People who want legal, regulated kratom access; public safety (safer product quality).
Affects: Kratom product makers/importers/retailers; folks who sell currently unlicensed or via informal channels.
⚙️ Who sponsored / Initiated vs. Who Opposed
Sponsored in the RI Legislature. (Exact sponsors not always highlighted in summary) (LegiScan)
Support likely from health regulators and those seeking regulation; opposition from those who believe kratom should remain banned or unregulated.
✅ Pros & ❌ Cons
✅ Pros:
Brings safety, oversight, and clear rules for a previously unregulated product.
Protects consumers from potentially unsafe or mislabeled products.
❌ Cons:
Could lead to delays / costs in licensing; small vendors may struggle.
Potential public health risks still exist depending on kratom use and dosage; regulation doesn’t remove all risks.
🗳️ The Ballot Beacon Takeaway
Rhode Island’s Kratom Act (effective April 1, 2026) legalizes kratom under strict licensing rules—bringing safety and regulation to a previously unregulated market, with extra cost and compliance needed.
✅ Law #2: Motor Fuel Tax Increase & Revised Adjustment Formula
Statute / Law: Part of Rhode Island’s 2025 legislative changes (FY2026 budget / related statutes) (Rhode Island Division of Taxation)
Effective: July 1, 2025 for the new base tax; changes to adjustment formula apply in future periods (next adjustments starting 2027) (Rhode Island Division of Taxation)
📝 What it does
Raises the base motor fuel tax from previously lower rate (32 cents per gallon) to 40 cents per gallon as of July 1, 2025. (Rhode Island Division of Taxation)
Adjusts how future inflation-based increases are calculated. Instead of previous method, post-2027 adjustments will use a revised formula based on inflation as of September for the two years preceding, rounded to the nearest cent. (Rhode Island Division of Taxation)
Also changes where some of the new tax revenue goes: of the extra 3 cents, part is allocated to state transportation (DOT), part to public transit (RIPTA). (Rhode Island Division of Taxation)
💰 Cost to taxpayers / state budget
People buying gas will pay more per gallon. That increases cost for commuting, goods transport, etc.
State and transit get more revenue; could fund infrastructure or transit improvements.
👥 Who it helps / affects
Helps: Public transit authority (RIPTA) and transport infrastructure via extra funds.
Affects: Drivers, businesses with transportation costs, consumers (via cost pass-through).
⚙️ Who sponsored / Initiated vs. Who Opposed
Enacted via budget/legislative leadership in RI 2025 session. (Stateside)
Support from those wanting improved transit or infrastructure; opposition likely from motorists or groups worried about cost of living increases.
✅ Pros & ❌ Cons
✅ Pros:
More funding for roads and transit.
Adjusts tax formula to better reflect inflation in future.
❌ Cons:
Higher fuel costs for consumers.
Adds burden to low-income individuals who drive more or have no transit options.
🗳️ The Ballot Beacon Takeaway
As of July 1, 2025, Rhode Island raised its motor fuel tax to 40¢/gal and changed how future increases are calculated; drivers pay more, transit & infrastructure get more money.
✅ Law #3: Sales Tax on Short-Term Parking & Expanded Taxable Services
Statute / Law: Part of Rhode Island’s FY2026 tax changes (House Resolution 5076 Substitute A, etc.) (Rhode Island Division of Taxation)
Effective: October 1, 2025 (Rhode Island Division of Taxation)
📝 What it does
Makes “short-term parking services” subject to the 7% Rhode Island sales tax, if parking duration is less than one month. (Rhode Island Division of Taxation)
Also adds some other services like “parking services” under the taxable services definition. (Rhode Island Division of Taxation)
💰 Cost to taxpayers / state budget
Adds some cost for consumers parking short-term (e.g. downtown, airport, hourly lots).
State collects more sales tax revenue.
👥 Who it helps / affects
Helps: State budget and local governments by increasing revenue.
Affects: Drivers/taxpayers who use short-term parking; parking operators (they collect and remit tax).
⚙️ Who sponsored / Initiated vs. Who Opposed
Passed as part of RI tax legislative changes. (Rhode Island Division of Taxation)
Opposition likely from those who feel parking costs burdensome; support from budget/revenue advocates.
✅ Pros & ❌ Cons
✅ Pros:
More predictable revenue for state; closes tax gap.
Fairness: services are taxed like other services.
❌ Cons:
Adds cost for parking, especially in urban areas.
Cumulative effects with other taxes may hit some consumers hard.
🗳️ The Ballot Beacon Takeaway
Starting October 1, 2025, Rhode Island will apply its 7% sales tax to short-term parking and similar services — good for state revenue, less so for people parking regularly downtown or in high-cost areas.
✅ Law #4: Medical Debt & Credit Reporting Reforms (SB 169 and SB 172)
📝 What it does
💰 Cost to taxpayers / state budget
Minimal direct state cost; largely regulatory oversight.
Could affect lenders/credit reporting agencies’ income or how they structure reporting; some costs passed through to those businesses.
👥 Who it helps / affects
Helps: Patients with medical debt; people trying to fix credit or avoid penalties.
Affects: Credit bureaus, medical providers / debt collectors; insurers or hospitals who may face delays or limitations in collecting unpaid medical debt.
⚙️ Who sponsored / Initiated vs. Who Opposed
Sponsors include lawmakers focused on consumer protection. (Stateside)
Supported by health-consumer advocates; opposed by businesses that rely on debt collection or credit reporting practices.
✅ Pros & ❌ Cons
✅ Pros:
Protects vulnerable consumers from being penalized for medical debt.
Could help people get better access to housing, credit if debt doesn’t appear on reports.
❌ Cons:
May reduce incentives for medical providers to chase unpaid bills aggressively.
Lenders / credit-reporting agencies may shift costs elsewhere.
🗳️ The Ballot Beacon Takeaway
Rhode Island passed SB 169 & SB 172 in 2025 to limit how medical debt shows up on credit reports and cap interest/fees on medical debt — helping people hurt by medical bills, with pushback from credit and collection industries.