As part of the Fiscal Year 2020 Executive Summary, Rhode Island Governor Gina Raimondo, proposes imposing a sales tax on digital downloads of videos, music, and books. Additionally, the summary proposes the elimination of a loophole that allowed online third-party marketplaces to avoid sales tax. At this time, there is no further legislative language describing exactly when or how these changes will come about. We will be monitoring closely and will provide updates accordingly.
In addition to the modernization changes regarding digital and online transactions, the Governor has also recommended adding additional services to the sales tax base, such as lobbying, interior design, services related to commercial buildings, and hunting activities.
Please find the FY 2020 Executive Summary here.