Latest declaratory ruling

The Rhode Island Division of Taxation has posted its latest declaratory ruling. Ruling No. 2023-02 was issued after a taxpayer requested a ruling regarding the interpretations of Rhode Island law relating to the application of sales and use tax on the Taxpayer’s online educational courses.

Latest Administrative Decision

In the latest Administrative Decision, the issue addressed is whether the Taxpayer owes use tax on two (2) trucks purchased, one in 2018 and one in 2019, by the Taxpayer and if so, is a trade-in allowance allowed for trucks pursuant to R.I. Gen. Laws § 44-18-30(23). This issue also requires a determination of whether the Taxpayer was a bona fide nonresident of Rhode Island at the time of the purchase of the trucks. 

Details are contained in Administrative Decision 2023-07.

Deadline is September 15 for estimated payments

The Rhode Island Division of Taxation reminds taxpayers and tax professionals that September 15 is the deadline for filing and payment of the third quarter installment of estimated taxes under the Rhode Island personal income tax.

Pass-through withholding filers should note that form 1096PT-ES is no longer in use. Starting with Tax Year 2023, pass-through withholding must be reported on a schedule that will be part of Forms RI-1041, RI-1065 and RI-1120S.  This means that estimated payments for pass-through withholding for periods beginning with tax year 2023 should be made on either Form RI-1041ES (for Fiduciary filers) or BUS-EST (for corporate filers). 

Details are available in Advisory 2023-14.

Earned Income Tax Credit

The Rhode Island Division of Taxation reminds taxpayers that the passage of House Bill 5200, Substitute A, as amended, increased the Rhode Island earned income tax credit (EITC) for Tax Years beginning on or after January 1, 2024, to 16% of the federal credit. The refundable portion continues to be 100% of the amount by which the Rhode Island EITC exceeded the Rhode Island income tax.

Details are available in Advisory 2023-13.