Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 70 - Sales and Use Tax
Part 29 - Damaged Goods and Returned Merchandise (280-RICR-20-70-29)
Section 280-RICR-20-70-29.5 - Damaged Goods
Universal Citation: 280 RI Code of Rules 20 70 29.5
Current through September 18, 2024
A. Sales Tax
1. If damage to goods in transit to the
consumer occurs after the "sale", as defined in R.I. Gen. Laws §
44-18-7 is made, sales tax applies to the sale. If the damage occurs before the sale,
sales tax applies as follows:
a. If the goods
are destroyed, tax does not apply to damages paid to the retailer for their
destruction.
b. If the goods are
not destroyed, and are sold at retail in their damaged condition, tax applies
to that portion of the total amount paid to the retailer representing the price
paid for the goods in their damaged condition.
B. Use Tax
1. Use tax does not apply with respect to
goods destroyed before the purchaser makes any storage or use of the goods in
this state. If the goods are damaged but are nevertheless stored or used in
this state by the purchaser, tax applies to the total amount paid to the
retailer.
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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