Tax Changes

There are new tax changes in Rhode Island effective today, October 1, 2019 that may affect you. Here is the abbreviated list of updates:

Live StreamingExempt

  • 7% sales and use tax will no longer apply to feminine hygiene products, which includes tampons, panty liners, menstrual cups, sanitary napkins, and “other similar products the principal use of which is feminine hygiene in connection with the menstrual cycle”.
  • Urns ordinarily sold as part of the funeral services business are exempt from sales and use tax.

Subject

  • E-books, streaming video, music downloads, and other “specified digital products”, including will now be subject to Rhode Island’s sales and use tax. The term “specified digital products” includes digital movies, digital TV shows, digital books, digital music, and related items streamed, or downloaded to computers, phones, or other devices. The term also includes subscriptions to streaming audio and streaming visual products.

Surcharge

  • E-911 surcharge on residence and business phone lines are splitting into two separate charges: 1) as the emergency services surcharge, and 2) as the first response surcharge. The E-911 surcharge on wireless, cellular and other similar devices also applies.

For more information, please view the original document by the RI Department of Revenue, Division of Taxation [here], or contact us at 401-831-0200.