The Rhode Island Department of Revenue’s Division of Taxation recently issued a statement on the South Dakota v. Wayfair decision. The statement notes that “last week’s U.S. Supreme Court decision means that a state can require a retailer to collect and remit the state’s sales tax – including online retailers that have no physical presence in the state.”
Under a Rhode Island law enacted in 2017, any non-collecting retailer that has in the immediately preceding calendar year (1) over $100,000 of taxable sales of tangible personal property, prewritten computer software, or taxable services delivered into Rhode Island, or (2) over 200 of such sales transactions must comply with certain use tax reporting requirements or register to collect and remit sales and use tax. The recently-issued statement reminds taxpayers of this obligation and confirms that for non-collecting retailers, the choice to either collect or report is still available. The five reporting requirements that apply to a non-collecting retailer are as follows:
Please stay tuned to TWIST for future Wayfair responses.
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