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RI gov vetoes tax break for unsold new homes

PROVIDENCE, R.I. (AP) -- For the second year in a row Rhode Island's governor has vetoed legislation that would have placed a tax break on unsold new homes.

Gov. Lincoln Chafee vetoed the legislation Tuesday. He says the tax exemption on new and unsold homes and apartments would drain revenues from struggling towns and give developers an incentive not to sell a home until prices rise.

The exemption would have prohibited municipalities from taxing new and unsold homes for up to two years , though they could still tax the land.

Chafee vetoed a similar bill last year.

Supporters had said the bill would have helped the state's struggling construction industry.