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Rhode Island tacks on more sales taxes starting today

Retailers, consumers urged to take note of changes.

 

The Rhode Island Division of Taxation sent out the following information last week and urged retailers and consumers to take note of the following changes to Rhode Island’s sales tax that take effect today, Oct. 1

  • The 7 percent sales and use tax will apply to articles of clothing, including footwear, priced at more than $250 per item. Only the increment above $250 will be taxed. For example, for a suit that costs $275, the tax rate will be applied only to $25, resulting in a tax of $1.75.
  • The 7 percent sales and use tax will apply to taxicab services, limousine services, charter bus services, and other transit and ground transportation services. Interstate transportation and certain other transportation services will be exempt from the tax.
  •  The 7 percent sales and use tax will apply to pet care services – including boarding, grooming, sitting, and training pets. Veterinary and testing laboratories services will be exempt from the tax.

“We’ve been working closely with retailers, accountants, business groups, and others to get the word out about these changes,” said Rhode Island Tax Administrator David M. Sullivan. “We’ve received a lot of cooperation, and we anticipate that the changes will be implemented smoothly.”

The tax changes were included in a budget bill approved and enacted in June 2012. Their effective date was postponed until Oct. 1 to allow time for implementation, according to the taxation division.

As a result of the changes, some businesses will now be considered retailers under state law: They must register with the Tax Division, pay the annual $10 sales tax permit fee, and file sales and use tax returns with the Tax Division, said Peter McVay associate director of revenue services.

Anyone who has questions about the sales tax changes should call the Tax Division’s Excise Tax section at (401) 574-8955.

SDE October 01, 2012 at 12:31 PM
What about a budget surplus? Tyrants!
John Galt October 01, 2012 at 12:52 PM
This is such an innovative method to attract business to ri and grow our economy! Way to go!
Crazytown October 01, 2012 at 04:08 PM
agreed! shop in Mass! We have ringling borthers running RI, only good thing about it is that we get a front row seat!
Haavey October 01, 2012 at 04:26 PM
Hence, one of the reasons why I moved out of RI one year ago.
Still Hope October 01, 2012 at 08:43 PM
This new tax is an equalizer. Most clothing purchases above $250 are made by people with greater disposable income. Similarly, the ones who pay for professional pet training and grooming tend to be more financially equipped. Essentially, these are taxing the 'rich' on their overspending. The only new tax that might be questionable is for taxis. These are often used by fixed income individuals. Then again, RI has a solid bus system, so taxis and limos could be considered more of a convenience. FWIW, MA has a clothing tax above $175 and they had raised their sales tax to 6.25 a few years ago.
Steve October 01, 2012 at 10:15 PM
SH, I love your liberal view of "tax the rich" that you seem to possess. Are you now saying that because I own a dog and have it groomed, I'm rich too? You are totally misguided to say the least, and are buying this liberal propaganda that the Great Obama and their delegates are spewing going into the elections ! Tax, tax, tax, tax the rich, where will it end? Again, with this president, and the deficits he has run up over the last 4 years, each and every citizen now owes 140,000 dollars towards our deficit. Can you afford this, or is your only answer to tax the rich and make up .01 percent of the current deficit, sad to say the least. If the average income in the state or RI is 40,000, is it safe to say that if you live in RI, you're rich if you earn 50,000 or more? So, let's drop these tax increases down to 50,000, because according to RI stats. that rich right? SH, where does it stop, and where do people say enough is enough and STOP the spending! First, 250, then 200, then 150, then 100, then 50 thousand! Who is rich now a days?
Jean M October 01, 2012 at 11:49 PM
Raise Taxes on everything until everyone moves out of R.I. Way to go Retards
Uncle Ben October 02, 2012 at 12:00 AM
Not for me because I left,,, look at my name, lol
English first October 02, 2012 at 11:38 AM
Steve. Perhaps you are not rich, but pet grooming isn't for the poor and needy. It is a luxury such as riding in limos and clothing over 250$
Still Hope October 02, 2012 at 01:48 PM
Steve. I'm pretty sure I chose my words pretty selectively. I was illustrating the difference between this new tax and how most taxes in RI are implemented. For instance, if they were to raise property tax it would hit hard working families the hardest. If they were to raise income tax, again it would affect hard working families the most. This new tax will generate revenue without placing the majority of the burden on hard working families for once. I own my own car, spend less than $200 on shoes, and wash my dog in the shower. What tax? Also, FYI: RI and MA are middle of the pack when it comes to sales tax in this country. Contrary to what you might think, sales tax in 'Red States' tend to be higher than those in 'lefty states'. http://taxfoundation.org/article/ranking-state-and-local-sales-taxes-1
Steve October 02, 2012 at 03:51 PM
Funny, the only state higher than RI is California. Another democratic run state on the verge of total collapse! Go figure. And where are we on the "Most Friendly States to do Business in Ranking"? I think you know the answer to that question right? Now I know why I go to Massachusetts to buy everything. But this "Travel to Massachusetts" to go shopping mystery seems to somehow befuddle our state reps. here in little ole' Rhody. I guess they figure we're too stupid to drive 10 minutes over the border to save real money........ Oh well, election time is coming up, make sure you vote these BOZOS in again, hey, in another couple of years, RI will be nothing more than empty buildings and tumbleweeds.
Steve October 02, 2012 at 11:06 PM
EF, please, let me educate you for once. Every time the state raises taxes on services such as limos and other transportation services, it does nothing more than drive this business into other states and especially transportation hubs such as, you guessed it, Boston! Why do you think Green State airport has gone down over the last several years? Why would anyone fly into Providence, when they know they're going to get whacked on a shuttle car service, rental car rates, hotel bills and such? Please, please, look at the bigger picture, it's not about you, it's about how our state portrays itself on the bigger playing field of doing business and being "Business Friendly". You think it doesn't pertain to you, well you're sadly mistaken, it effects all of us who live in RI........ Bottom line, these Democrats can't say no to spending, and it's costing us all dearly in the form of never ending tax increases, even if it’s just going to have your pet groomed once every three months! How they ever came up with that tax is really beyond me............ Doesn’t Fido need a good trim once in a while? EF, how about they throw a 8% tax on beauty salons, (Mani’s and Pedi’s included) now that would be a tax I support!
Still Hope October 03, 2012 at 05:42 PM
Sorry Steve, you read the chart wrong. Most states outside of New England use a combined effective sales tax. Try it again. With regard to RI's business environment, as much as would like to blame over-regulation and poor government policy, the fact is RI hasn't been a business magnet since the 70s. A state built on manufacturing will have a hard time when those manufacturers move operations overseas. Also, I would love for Microsoft to relocate to this state, however I don't think NE Tech has enough talent to invent the next operating system. Jus sayin.

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