State tax changes now in effect

The Rhode Island Division of Taxation today posted a reminder for tax professionals and others about tax changes that are now in effect.

Some of the changes are the result of recently enacted legislation. Other changes are the result of legislation enacted in recent years. Today’s Advisory includes a brief summary of some key provisions and their effective dates. To view or download a copy, click here.

Sales tax permits

The Rhode Island Division of Taxation has begun mailing out approximately 21,500 sales tax permits to retailers. Sales tax payment coupon booklets will go out next month. For more information, click here.

Warning issued about tax-related scams

The Internal Revenue Service today urged taxpayers to watch out for new versions of two tax-related scams. One involves Social Security numbers related to tax issues. The other threatens taxpayers with a tax bill from a fictional government agency. To learn more, click here.

The IRS's warning about the "tax bill" mailed from a fictional government agency is a familiar one: At least one taxpayer in Providence, Rhode Island, recently reported receiving such a letter and has contacted authorities about it. "Even though summer is here, individuals and businesses still need to be on their guard against scams," said Rhode Island Tax Administrator Neena Savage. "Criminals come up with many different ways to try, under false pretenses, to obtain your personal information, your money, or both. Be careful," she advised.

Earlier this year, she warned taxpayers about a scam from someone who calls on the phone, claiming to be from the Rhode Island Division of Taxation. “If you receive this sort of call, don’t provide any information. Write down the caller’s name and contact information, if available. Then hang up and contact the appropriate agency," she said at the time.

The IRS, the Rhode Island Division of Taxation, tax agencies from other states, and the tax community are part of the Security Summit. Partners in the Security Summit work together to combat identity theft to protect the nation’s taxpayers.

Reminder for remote sellers, others

The Rhode Island Division of Taxation reminds remote sellers, marketplace facilitators, and referrers that they must register with the Division and collect and remit Rhode Island sales and use tax effective Monday, July 1, 2019, if they meet or exceed certain thresholds involving sales. 

It is the result of a recently enacted Rhode Island law, which followed a landmark U.S. Supreme Court case known as Wayfair. One consequence of the law is that, effective Monday, July 1, 2019, some online retailers that had not been collecting and remitting Rhode Island sales and use tax on purchases made by individuals and businesses in Rhode Island will begin to do so. To learn more, click here.

Reminder: Gas tax increase Monday

Once every two years, the Rhode Island Division of Taxation is required by statute to determine whether inflation has been sufficient to increase the gasoline tax. This time around, the Division 
found sufficient inflation to result in an increase in the gasoline tax as of Monday, July 1, 2019. 

Therefore, based on statutory formula, the gasoline tax will be 34 cents per gallon effective Monday, July 1, 2019, compared with 33 cents per gallon today, an increase of one cent. To learn more, click here.

Estimated payments due Monday

The Rhode Island Division of Taxation reminds taxpayers and tax professionals that Monday, June 17, is the deadline for the second installment of estimated tax under the Rhode Island personal income tax. The normal deadline is June 15, but that falls on a weekend this year. Therefore, the deadline moves to the next business day: Monday, June 17.

Monday is also the deadline for the second installment of estimated tax for calendar-year payers of corporate tax, bank excise tax, political organization tax, composite income tax, and pass-through withholding. In addition, June 17 is the deadline for the second installment of estimated tax for payers of the bank deposits tax, insurance gross premiums tax (admitted carriers), surplus lines brokers/licensees, public service corporation tax, and estate and trust income tax. For more information, please see the Division’s website.

Inflation adjustment for gas tax

The Rhode Island Division of Taxation today posted a Notice about the biennial inflation adjustment for the gasoline tax.

The Division announced the inflation adjustment in December 2018. Today’s Notice is, in essence, an official reminder, given that the adjustment takes effect next month. To view the Notice, click here. Thank you.