Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 70 - Sales and Use Tax
Part 28 - Motor Vehicle and Non-Motorized Vehicle Taxes (280-RICR-20-70-28)
Section 280-RICR-20-70-28.15 - Gifts of Motor Vehicles
Current through September 18, 2024
A. Where a motor vehicle is purchased from an out of state retailer with the intent to gift it to a person that will store, use, or consume it within this state, then the tax applies. The donor will be required to pay the use tax at the current rate on the sale price charged to him or her by the out-of-state retailer, less any trade-in allowance where applicable, as a prerequisite to the donee's right to obtain registration plates.
A husband and wife go to Massachusetts (MA) together. The husband buys a car from a MA dealer and the bill of sale indicates that he is the purchaser. While in Boston he gives the vehicle to his wife as a gift. The wife then attempts to register the vehicle in Rhode Island, claiming that because the vehicle was a gift to her it is tax exempt.
B. The residence of the donor and his or her relationship to the donee is immaterial in cases involving newly acquired vehicles (new or used) given to the donee for registration in Rhode Island. Any sales tax legally paid by the donor in the state of purchase may be credited against the Rhode Island use tax on such vehicle.
C. Under the provisions of R.I. Gen. Laws § 44-18-25 there is a PRESUMPTION that:
D. Prior to obtaining a motor vehicle registration, the donee is required to:
E. If it is a gift between immediate family blood relatives, i.e. mother/father, husband/wife, sister/brother and children thereof, a gift letter showing names, addresses, relationship and description of vehicle with the Vehicle Identification Number along with proof that the tax was previously paid is required.
