More Sales Taxes Taking Effect Today

Rhode Island adds sales tax to clothing over $250, transportation services, pet care.

Rhode Island tacks on more sales taxes starting today.

The Rhode Island Division of Taxation 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.

Joe Richer October 01, 2012 at 01:16 PM
Why exactly would a person choose to open a business in RI vs. anywhere else?
Tony Soprano October 02, 2012 at 12:27 AM
And the winner of the ABSOLUTE worst state for small business is.....you got it RI. What a disgrace-Alex and Ani will be out of here in 3 years or less, who can blame them.
Robert Farebrother October 02, 2012 at 01:37 AM
One thing, I can't remember paying anything anywhere close to $250.00 on clothing at one time. Let's see how good cabbies are of making exact change now.
Fatima A Finamore October 02, 2012 at 03:54 PM
Please read my comments on the "daughter-father dance". RI does not have to continue on a downward spiral if we all unite and show our politicians we are in fact paying attentions, listening and remembering what has been done, has not and all the increases, lock of jobs. I suggest we the people who love this state and country tell our politicians in November, with out vote, Washington can in fact change in two ways; by a strong president (we do not have one) and by the people. Lets show them we love this country and WE WILL NOT allow them to further, not only bring us to a higher cliff but under no circumstances will they push us off the cliff. A new president is the first step. Politicians because we feel bad must go. So we need all these people in government ruining us? so many of them? paying more and more to keep them to do what? The time to reduce government, lower taxes and take control is NOW! RI stand up for our state. This is a beautiful place and we must reclaim it NOW!!! Reduce taxes, Reduce governement, NOT RAISE TAXES!!!
Joyce Maxwell October 06, 2012 at 10:41 PM
Moneybags Chafee HAS a car, fancy property, etc. Why should he care that us old timers who can't afford a car on Social Security have to pay more now for a cab ride?? What an insensitive jerk!!! Certainly not his father!!


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