Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 70 - Sales and Use Tax
Part 42 - Advertising Agencies and Materials (280-RICR-20-70-42)
Section 280-RICR-20-70-42.6 - Advertising Materials
Universal Citation: 280 RI Code of Rules 20 70 42.6
Current through September 18, 2024
A. "Advertising material" shall include displays, display containers, brochures not containing price lists, point of sale advertising and technical manuals or any tangible personal property which does not accompany the product to the ultimate consumer.
1. Any pamphlet, brochure or other
item, the nature of which includes something besides mere advertising material,
and which is enclosed with or accompanies the product when it is sold at
retail, and for which no separate charge is made, is regarded as being sold
along with such product and the retail selling price charged the customer is
deemed to include both such product and such printed material or other item.
a. Accordingly, resale or manufacturer's
exemption certificates may be issued by manufacturers, producers, packers and
others who purchase such printed material or other items to be used for such
purposes.
b. For example, a
manufacturer encloses a pamphlet with each piece of luggage manufactured. The
pamphlet consists of several pages, some of which contain instructions for the
customer on the proper use of the product, some being devoted to travel
information, and other pages containing illustrative pictures of its complete
line of luggage and describing the merits of its products. Since such pamphlet
is not exclusively advertising material, the tax does not apply.
2. Advertising material shipped by
a local supplier to points outside of Rhode Island by order of a Rhode Island
purchaser or which does not enter the state is not subject to the tax.
a. Advertising material purchased outside the
state and delivered in the state and used herein is subject to the use tax and
such tax should be paid directly to the state if not collected by a seller who
holds a certificate of authority to collect the use tax.
3. A person engaged in selling to
storekeepers, merchants and other consumers any direct mail advertising
material, advertising pieces, circulars, hand-outs, throw-aways, and similar
advertising material, is regarded as a retailer. A sales tax permit must be
obtained, and the tax must be added, collected and remitted on such items sold.
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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