Sales Tax Exemptions in Rhode Island
In Rhode Island, goods like prescription drugs, some clothing and footwear, and textbooks are exempt from sales tax. The state sales tax rate is 7%.
Tax Procedures and Information
To file sales tax returns in Rhode Island, first log into the state website. Refer to the state’s guide for reasons a business would be exempt from paying sales tax. The Rhode Island Division of Taxation administers and enforces sales tax laws. As a business owner selling taxable goods or services, you collect tax from purchasers and pass it along to the tax authority. Any sales tax collected belongs to Rhode Island, not you.
Sales Tax Rates and Additional Taxes
The minimum combined sales tax rate for Newport, Rhode Island is 7%. The base state sales tax rate in Rhode Island is 7%. Local tax rates in Rhode Island range from 7.00%, making the sales tax range in Rhode Island 7.00%.
Soda Tax Considerations
Soda may be subject to the restaurant food tax rate in Rhode Island. The state is considering a soda tax, an excise tax on sugary drinks. Most soda taxes apply a flat rate per ounce of a sugar-sweetened beverage. The tax would not apply to diet sodas or bottled water and provides a carve out for bottlers that generate under $2 million per year in revenue. The tax will generate at least $27 million per year in state tax revenue.