Rhode Island Sales Tax Law Changes Effective October 1, 2011

Thursday, October 6th, 2011

Rhode Island

Rhode Island has significantly revised several provisions of its sales and use tax laws effective October 1, 2011.

First, Rhode Island has narrowed its exemption for drugs, so that sales of over-the-counter drugs are now generally taxable.

Second, Rhode Island has changed its tax treatment of prewritten software. Previously, electronically downloaded software was not taxable; under the new provisions, Rhode Island taxes sales of electronically downloaded software, including smart phone apps.

Third, Rhode Island now taxes package tours and scenic and sightseeing transportation services, including boat tours, bus or trolley tours, train tours, and helicopter or airplane tours. Persons providing package tours or sightseeing transportation services are now considered to be retailers and are required to register with the state's tax administrator.

Finally, Rhode Island now includes sales of medical marijuana in the definition of “sales” that are subject to sales tax.

About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

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