Gov. signs $8.1B budget bill into law

PROVIDENCE, R.I. (WPRI) -- Rhode Island Governor Lincoln Chafee signed a $8.1 billion budget bill into law on Friday.

Under the new bill, a seven percent sales tax will be imposed on taxi fares, pet grooming, and luxury clothing. There will also be an increase on education and disability spending for the fiscal year beginning July 1.

The Senate voted 30-7 for the spending plan earlier this week.

• Senate passes $8.1 billion budget

The House approved the budget last week.

• Interactive: Breakdown of House budget
• Related: Groomers barking mad over new taxes

"This is by no means a perfect budget, but it is an exercise in compromise, collaboration, and cooperation. And it does contain some measures that will improve Rhode Island’s competitiveness and continue our state down the path to a more stable and prosperous future," Gov. Chafee said.