Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 70 - Sales and Use Tax
Part 11 - Exemption of Sales by Writers, Composers and Artists (280-RICR-20-70-11)
Section 280-RICR-20-70-11.6 - Sales and Use Tax Exemption
Universal Citation: 280 RI Code of Rules 20 70 11.6
Current through September 18, 2024
A. The exemption from sales and use tax for sales of artistic works applies to sales by:
1. An individual who is a resident of and has
a principal place of business situated in this state, and has been determined
by the tax administrator, in consultation with the council, to have written,
composed, or executed, either solely or jointly, a work or works, by the
individual. Such determination shall be made after consideration of any
evidence submitted by the individual.
2. A writer, composer or artist conducting
their business as a legal entity organized and registered under the laws of
this state and that has its principal place of business situated in this state,
and has been determined by the tax administrator, in consultation with the
council, to have written, composed, or executed, either solely or jointly, a
work or works. Such determination shall be made after consideration of any
evidence submitted by the entity.
3. Any art gallery located in the state of
Rhode Island.
a. Example 1. An art gallery
located in Providence, RI sells a "work" for the price of $1000. Payment is
made directly to the art gallery operator. This sale is not subject to sales
and use tax, provided that the operator of the art gallery has submitted an
"Application for Sales Tax Exemption for Artistic Works" and received an
exemption number from the Division of Taxation prior to the sale, which must be
written on the customer invoice.
b.
Example 2. A "pop-up gallery" located at a temporary location in Rhode Island
sells a "work" for the price of $1000. Payment is made directly to the art
gallery operator. This sale is not subject to sales and use tax provided that
the operator of the art gallery has submitted an "Application for Sales Tax
Exemption for Artistic Works" and received an exemption number from the
Division of Taxation prior to the sale. The exemption number assigned by the
Division of Taxation must be shown on the customer invoice.
c. Example 3. A promoter schedules an art
festival in a city or town in Rhode Island and rents out space at the event to
individual vendors who will be selling "works". The promoter, upon submitting
an application and in consideration of the type of art items being sold
(works), will be issued a blanket "Certificate of Exemption" by the Division of
Taxation. This exemption will exempt the sale of a "work" by all vendors
operating at the show who have not individually filed for and received a
numbered exemption certificate for the sale of artistic "works." Vendors must
still obtain a temporary sales tax permit from the promoter of the show. At the
conclusion of the show, vendors must file with the promoter a sales tax return
with payment for any items subject to sales tax. In addition, the vendor must
also fill out and submit along with the sales tax return, a reconciliation of
the sales and activity of the show. Failure to submit the sales tax return or
the reconciliation will prevent the vendor from being able to participate in
future shows.
Disclaimer: These regulations may not be the most recent version. Rhode Island may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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