Rhode Island Governor Recommends Eliminating Online Marketplace Seller’s Loophole

Sovos
January 22, 2019

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.  

 

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Sovos

Sovos is a global provider of tax, compliance and trust solutions and services that enable businesses to navigate an increasingly regulated world with true confidence. Purpose-built for always-on compliance capabilities, our scalable IT-driven solutions meet the demands of an evolving and complex global regulatory landscape. Sovos’ cloud-based software platform provides an unparalleled level of integration with business applications and government compliance processes. More than 100,000 customers in 100+ countries – including half the Fortune 500 – trust Sovos for their compliance needs. Sovos annually processes more than three billion transactions across 19,000 global tax jurisdictions. Bolstered by a robust partner program more than 400 strong, Sovos brings to bear an unrivaled global network for companies across industries and geographies. Founded in 1979, Sovos has operations across the Americas and Europe, and is owned by Hg and TA Associates.
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