Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 70 - Sales and Use Tax
Part 13 - Materialmen - Pay When Paid Remittance Method (280-RICR-20-70-13)
Section 280-RICR-20-70-13.5 - In-House Credit Only

The provisions of the "pay when paid" method relate only to the in-house credit extended by the materialman. In the event that a materialman finances any portion of the receipts or consideration from a sale, including any tax due thereon, directly or indirectly, with any person (other than a contractor, subcontractor or repairman) whether by factoring or any other means, then the materialman shall be deemed to have received payment of such receipts from such contractor, subcontractor or repairman and shall be required to pay over tax on such sales with the next return due.