Rhode Island to Add Sales Tax to Transportation Services
- Sales Tax News
- Sep 11, 2012 | Logan Conner
The state of Rhode Island will soon collect sales and use tax on transportation services, including ". . . taxicab, limousine, charter bus, and other ground passenger transportation services."
The Rhode Island Division of Taxation adopted the SU 12-151 regulation, effective October 1, 2012. A 7% sales tax will be charged on transportation services which both begin and end inside Rhode Island. Services which either begin or end outside of Rhode Island will not be charged the 7% sales tax.
Services in connection to funerals, ambulances, or other forms of emergency transportation are exempt from the tax.
Anyone providing these transportation services will be considered a retailer and “shall be required to register with the Rhode Island Division of Taxation, obtain a sales tax permit, and collect and remit sales and use tax.” The registration form can be found here.