Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 70 - Sales and Use Tax
Part 56 - Coupons - Discounted Selling Price - Buydowns (280-RICR-20-70-56)
Section 280-RICR-20-70-56.5 - Generally
Universal Citation: 280 RI Code of Rules 20 70 56.5
Current through September 18, 2024
A. Cash discounts allowed and taken at the time of sale are excluded from the sales price of tangible personal property upon which the sales tax is based. Cash discounts which are given to customers after the time of sale are not excluded from the sales price.
B. "Sales price" shall not include:
1. Discounts, including cash, term, or
coupons that are not reimbursed by a third party that are allowed by a seller
and taken by a purchaser on a sale.
C. The sales price shall not include manufacturer rebates allowed on the sale of motor vehicles.
D. "Sales price" shall include consideration received by the seller from third parties if:
1. The seller actually receives consideration
from a party other than the purchaser and the consideration is directly related
to a price reduction or discount on the sale;
2. The seller has an obligation to pass the
price reduction or discount through to the purchaser;
3. The amount of the consideration
attributable to the sale is fixed and determinable by the seller at the time of
the sale of the item to the purchaser; and
4. One of the following criteria is met:
a. The purchaser presents a coupon,
certificate or other documentation to the seller to claim a price reduction or
discount where the coupon, certificate or documentation is authorized,
distributed or granted by a third party with the understanding that the third
party will reimburse any seller to whom the coupon, certificate or
documentation is presented;
b. The
purchaser identifies himself or herself to the seller as a member of a group or
organization entitled to a price reduction or discount (a "preferred customer"
card that is available to any patron does not constitute membership in such a
group), or
c. The price reduction
or discount is identified as a third party price reduction or discount on the
invoice received by the purchaser or on a coupon, certificate or other
documentation presented by the purchaser.
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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