Motor Fuel Tax rate change

The 2009 session of the Rhode Island General Assembly enacted into law legislation (House Bill 5983 Substitute A as amended, Article 16) increasing the motor fuel tax rate from 30 cents to 32 cents per gallon for all taxable motor fuels sold or used by distributors and special distributors. This increase would be effective at 12:01am on July 1, 2009

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Definition of Sales Tax Retailer changed

The 2009 Rhode Island General Assembly enacted into law Article 16 of House Bill 5983 Sub A as Amended to provide a presumption that certain sellers of taxable tangible personal property are retailers under § 44-18-15 and are required to register collect and remit Rhode Island sales taxes. This new law is effective as of July 1, 2009.

Background
The term retailer includes persons who solicit business within the state through employees, independent contractors, agents or other representatives and, by reason thereof, make sales to persons within the state of tangible personal property that are subject to sales tax. Accordingly, if a business located outside Rhode Island solicits sales of taxable tangible personal property or services through employees, salespersons, independent contractors, agents, or other representatives located in Rhode Island, the business must register as a retailer and obtain a Permit to Make Sales at Retail (See Regulation SU 90-20).

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Hospital Licensing Fee Rate Change

The Rhode Island General Assembly enacted into law Article 16 of House Bill 5983 Substitute A as Amended which increased the Hospital Licensing Fee rate to 5.473% upon the net patient services revenue for the hospital fiscal year ending September 30, 2007. The legislation also required the Hospital Licensing Fee be paid to the Division of Taxation on or before July 13, 2009.

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