A new law requiring out of state sellers to collect and remit sales tax has been signed by Governor Gina Raimondo.
This law closes loopholes which did not require out of state sellers to register for a permit in the state of Rhode Island and collect sales tax. This change will help minimize losses that Rhode Island companies were losing to bigger online retailers.
Companies that sell taxable items in Rhode Island will now be required to have a permit, and collect 7-percent sales tax on purchases made by Rhode Island shoppers.
The law will take effect in 90 days. Legislators say the grace period will allow the online retailers to update their systems and prepare. To read the changes in full, please see the new law.
