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Rhode Island Ready for Marketplace Fairness Act


 Rhode Island is ready for the Marketplace Fairness Act of 2013.

Rhode Island's 2014 budget makes it clear that it intends to take advantage of the Marketplace Fairness Act of 2013 (MFA) should it become law.

A Streamlined Sales Tax state since 2007, Rhode Island has already embraced many of the  tax simplification measures that MFA would require in order for a state to impose a remote sales tax obligation. It is well positioned to take advantage of MFA should it pass, and to require remote sellers to collect and remit Rhode Island sales and use tax.

Under the FY 2014 budget, the following changes would take place should MFA becomes law:

  • The state rate would drop from 7% to 6.5%;
  • The 1% local meals and beverage tax would increase to 1.5%; and
  • Retail sales of clothing and footwear would be entirely exempt from sales and use tax.

Whether or not federal lawmakers will approve the Marketplace Fairness Act of 2013 remains to be seen. While it had a strong show of support in the Senate, it has been waiting on the table of the House since early May.

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Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.