Rhode Island – Recently Amended Sales and Use Tax Rules and Exemptions

SALT Report 2306 – The Rhode Island Department of Revenue recently amended the following rules and exemptions.

Interstate Carrier Exemption

The sales and use tax regulation regarding interstate carriers has been amended to reflect recently enacted legislation. Changes to the exemption include:

  • The purchase, rental, or lease of a bus by a busing company that transports passengers for hire is not subject to sales and use tax if the bus is used 80% or more of the time in interstate commerce. Also, the bus company must provide a completed “Affidavit of Truck, Trailer or Bus Operated in Interstate Commerce” to the Registry of Motor Vehicles at the time of registration.
  • A person who purchases a bus for the purpose of driving and leasing it to a busing company to be used no less than 80% of the time in interstate commerce qualifies for the exemption.
  • A bus used less than 80% of the time in interstate commerce does not qualify for the exemption.
  • If a vehicle qualifies for the exemption initially and at a later time is used less than 80% of the time in interstate commerce, the purchaser will immediately be required to pay sales or use tax to the Division of Taxation.

The amendments to the regulation are effective May 1, 2013.

For Further Information

Rhode Island Division of Taxation – Regulation SU 13-111

Direct Mail Sourcing Rule

The sales and use tax regulation regarding direct mail sourcing has been amended to clarify that a sale of advertising and promotional direct mail will be sourced to the address from which it was shipped, if the purchaser does not provide the seller with a direct pay permit, a direct mail exemption certificate, or any information that shows the jurisdiction where the direct mail will be delivered.

The amendments to the regulation are effective May 1, 2013.

For Further Information

Rhode Island Division of Taxation – Regulation SST 13-01

Record-Keeping Regulation

The sales and use tax regulation regarding a retailer’s record-keeping requirements has been amended to reflect that the definition of retailer that was in the previous version of the regulation has been replaced with the statutory definition found in RIGL §44-18-15.

The amendments to the regulation are effective May 1, 2013.

For Further Information

Rhode Island Division of Taxation – Regulation SU 13-91