Rhode Island abolishes sightseeing tour tax

Providence, R.I. (AP) — An unpopular tax on sightseeing tours in Rhode Island is being eliminated.

The 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 last year to help shore up the state's budget. This year they reconsidered and 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 aren't set to take effect until October 1.