The Restaurant Industry & Rhode Island Tax

As part of the Rhode Island Division of Taxation's efforts to improve the taxpayer experience, the Division has created a guide for restaurants and related businesses. The guide titled "The Restaurant Industry & Rhode Island Tax” outlines tax responsibilities for restaurants, answers common questions, and provides examples and extended guidance to help businesses comply with Rhode Island tax laws and regulations.

Read the guide.

Interest Rate Changes for January 1, 2023

The Division of Taxation reminds taxpayers and tax professionals that for tax periods beginning on or after January 1, 2023, the interest rate for some delinquent tax payments will be changing.

More information is available in Advisory 2022-25, and further details can be found in the Division's Interest Rate Change FAQs.

Property tax relief credit

The Division of Taxation reminds taxpayers that starting in January some Rhode Islanders can expect to see an increase in their property tax relief credit for tax years beginning on or after January 1, 2022. The maximum income level for taxpayers to qualify for the credit will increase from $30,000 to $35,000, with a maximum credit of $600.

More information is Available in Advisory 2022-24.

Electronic filing mandate for "larger business registrants"

The Division of Taxation reminds businesses that in accordance with changes signed into law in June, larger business registrant taxpayers will be required to use electronic means to file returns and remit taxes to the State of Rhode Island beginning on January 1, 2023.

A "larger business registrant" is defined as any person who:

• Operates as a business whose combined annual liability for all taxes administered by the Division of Taxation for the entity is or exceeds $5,000; or
• Operated as a business whose annual gross income is over $100,000 for the entity.

More information is Available in Advisory 2022-23.

Changes on the horizon for RI Sales and Use Tax Return

Taxpayers will notice changes to the Sales and Use Tax Return for monthly and quarterly periods beginning in January 2023. 

These changes will better align Rhode Island’s form with Sales and Use Tax forms used in neighboring states, providing a more consistent experience for taxpayers. The updated forms will allow you to reconcile sales each period, rather than only at the end of the year.

More information available in ADV 2022-22.

RI treatment of student loan debt forgiveness

On August 24, 2022, President Biden announced student loan debt forgiveness up to $20,000 for qualifying individuals. The discharge of student loan debt will be exempt from federal taxable income from January 1, 2021 through December 31, 2025. Rhode Island is adhering to this federal tax treatment and will not be including the discharge of student loan debt in Rhode Island taxable income for the same period of time. 

Sales Tax Exemptions

The passage of the Fiscal Year 2023 Budget has expanded Rhode Island’s sales tax exemptions. This means that beginning October 1, 2022, items as outlined in the Division's latest Advisory will be exempt from Rhode Island Sales and Use tax.

Read the Advisory

Reminder: September 15 due date approaching

Reminder: September 15 is the deadline for the third installment of estimated tax under the Rhode Island personal income tax. September 15 is also the deadline for a number of business entities. 

For more information, including details about online and other payment methods, visit the Division's website.

Motor Vehicle Dealers please note: Updated Form T336-1 in effect as of October 1, 2022

This fall, the Rhode Island Division of Taxation will implement updates to the ‘Rhode Island Dealer’s Statement of Sale - Motor Vehicle’ form. This form is also commonly known as the Form T336-1. The new fillable PDF will reduce errors and streamline filing and processing.

Read the Advisory