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Sales Tax Regulations

State of Rhode Island - Division of Taxation

Sales and Use Tax

Regulation SU 87-52


Gift Certificates

The sale of gift certificates is not taxable, but when the owner of a gift certificate receives tangible personal property by use of such a certificate, or a part thereof, the transaction is a sale and taxable as such. For example, if the owner of a gift certificate valued at $100 purchases a $25 item, tax computed on $25 must be collected by the retailer and remitted to the Tax Administrator.


DATE: May 1, 1987