East Greenwich Salons Not Happy With Proposed Sales Tax

Governor Chafee’s barber may not have problems with the proposal to add a six percent sales tax to hairdressing salons and personal grooming establishments, but the Governor wouldn’t get the same response at some East Greenwich salons.

At Camela’s Hair Creations on Main Street Stylists Beth DeSimas and Lou Ann Adams are not happy with the idea. Both say the economy is tough enough now and adding a sales tax to their services is only going to make it worse.

“It affects the middle class,” said Adams, who joked that she might run for office and get some of these problems solved.

In his budget message earlier this week, Chafee proposed a two tiered sales tax system with some items taxed at six percent and others at one percent.  The sic percent is actually a drop from the current seven percent, but is extended to a number of items currently exempt.  During his speech the Governor said his barber told him he is willing to bear his part of the burden if the legislature lives up to its' responsibilities.

Adams said customers have already stretched out their appointments from four to six weeks because of the down economy, and if the General Assembly approves Chafee's proposal, the cost of a new hairdo will probably make her customers stretch them out even longer.

Across the street at Salon Vogue, owner Maria Scott agrees and says it is a terrible idea and with the economy so bad people don’t need the stress of another tax.

She also says some of her customers have stretched out their appointments and are not getting their feet and nails done as often as in the past, often coming in when they have a special occasion in their lives.

Carmela's and Salon Vogue are two of the more than 20 salons, hairstylists and barbers who own such small businesses in East Greenwich.

East Greenwich Chamber President Karl Brother of Core Fitness said that establishing taxes on personal grooming services places an additional administrative burden on the small business owner and a decision to either absorb the tax, lowering their income, or passing it on to the customer who already is facing a substantial tax burden.

"The Chamber supports fair and equitable taxation," he said, "but looks to our state leadership to reduce costs of the delivery of vital services. It is unfortunate that in his budget address to the state Governor Chafee focused way too much on revenue enhancement as opposed to cost reduction."

While much of East Greenwich's salon sector is downtown, not all of it is.

At Benny’s Plaza on Post Road  Studio 401 owner Amy Harmon wasn’t up to speed on the  Governor’s proposal, but doesn’t like it.

She opened her salon last September and said it is tough to start a business in this economy.  “Adding a tax,” she says, “will make it more difficult and government should be doing more to help, not hurt business.” 

At Gianni’s Barber Shop at 9 Franklin Road Gianni Mattera echoed the sentiment that business is already tough and a sales tax will hurt small business.  He says that all the men in his barber chair talk about now is the economy, and rising gasoline prices are a real concern.

“A hair cut is an easy thing to get rid of," he said, and when prices go up on things like gasoline people just stretch out visits to the barber from 3 or four weeks to six or eight.

He’s had his shop in East Greenwich for 15 years and says things were great through 2007, but then started to decline and he’s down about 25 percent from that peak period.