2023 -- H 5805
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LC001775
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S TATE OF RHODE IS LAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2023
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A N A C T
RELATING TO TAXATION
Introduced By: Representatives J. Brien, Corvese, Baginski, Chippendale, Serpa,
Cardillo, Phillips, and Newberry
Date Introduced: February 22, 2023
Referred To: House Finance
It is enacted by the General Assembly as follows:
SECTION 1. Title 44 of the General Laws entitled "TAXATION" is hereby amended by 1
adding thereto the following chapter: 2
CHAPTER 19.1 3
SALES AND USE TAX HOLIDAY 4
44-19.1-1. Declaration of necessity. 5
In consideration of the fact that other states have had sales tax holidays which have been 6
successful in stimulating their respective economies, and it is expected that a similar stimulation to 7
the Rhode Island economy would occur as a result of a sales tax holiday in Rhode Island, such a 8
sales tax holiday is afforded by this chapter. 9
44-19.1-2. Applicability of Definitions. 10
Except where the context otherwise requires, the terms used in this chapter shall have the 11
same meaning as in chapters 13, 18 and 19 of title 44. 12
44-19.1-3. Sales Tax Holiday defined. 13
For the purposes of this chapter, the term “sales tax holiday” means the second Saturday 14
and Sunday of July every year. 15
44-19.1-4. Tax Holiday Sales. 16
Notwithstanding any other provision of the general laws to the contrary, during a sales tax 17
holiday, a sales and use tax shall not be imposed upon any non-business retail sale made by a 18
retailer located in Rhode Island, except for the following: 19
LC001775 - Page 2 of 3
(a) The sale of telecommunication services; 1
(b) The sale of cigarettes or other tobacco products taxed under chapter 20 of title 44; 2
(c) The sale of meals and/or beverages as described in § 44-18-18.1; 3
(d) The sale of motor vehicles; 4
(e) The rental of living quarters; 5
(f) The furnishing of service for transmission of messages by telegraph, cable, or radio and 6
the furnishing of community antenna television, subscription television, and cable television 7
services; and 8
(g) The sale of a single item whose price is in excess of two thousand five hundred dollars 9
($2,500). 10
44-19.1-5. Retailers collection requirements. 11
Notwithstanding any other provision of the general laws to the contrary, during a sales tax 12
holiday a retailer in Rhode Island shall not add to the sales price or collect from any non-business 13
purchaser a sales or use tax upon any retail sale described in § 44-19.1-4. Although the tax 14
administrator shall not require any retailer in Rhode Island to collect and pay sales and use tax upon 15
such retail sales made during the sales tax holiday, any sales or use tax erroneously or improperly 16
collected during a sales tax holiday shall be remitted to the division of taxation. 17
44-19.1-6. Retailers reporting requirements. 18
Reporting requirements imposed upon retailers, by law or by regulation, including, but not 19
limited to, the requirements for filing returns required by chapters 18 and 19 of title 44, shall remain 20
in effect for sales during the sales tax holiday, unless changed by the tax administrator in 21
instructions, forms, rules or regulations as provided for in § 44-19.1–7. 22
44-19.1-7. Rules and Regulations - Forms. 23
The tax administrator may adopt rules and regulations to carry into effect the provisions of 24
this chapter. The tax administrator may prescribe and furnish any forms and instructions necessary 25
or proper for the administration of this chapter. 26
SECTION 2. This act shall take effect upon passage. 27
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LC001775 - Page 3 of 3
EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO TAXATION
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This act would create a sales and use tax holiday for the second Saturday and Sunday in 1
July, annually. 2
This act would take effect upon passage. 3
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LC001775
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