Background
A company filed a request for a ruling on whether Rhode Island's "paint stewardship assessment" is part of the final price a customer is charged when buying architectural paint. (If it is, the assessment is subject to Rhode Island sales and use tax.)
Rhode Island has a program for the proper management of unused paint. The program includes a "paint stewardship assessment" -- an amount that's added to the purchase price of architectural paint to cover the cost of collecting, transporting, and processing post-consumer paint. (See Rhode Island General Laws § 23-24.12-2).
In general, the term "architectural paint" means paint that is used to coat buildings and homes. It means interior and exterior architectural coatings sold in containers of five gallons or less. The current paint stewardship assessment amounts in Rhode Island are based on container size. The maximum such assessment is $1.60.
Decision
The Division ruled that the assessment is part of the overall sale price upon which Rhode Island sales tax is due. Thus, the assessment is subject to Rhode Island sales and use tax. The ruling, which is limited to the facts stated, is available on the Division's website.
