Sales and Use Taxes Liability and Computation
§ 44-18-20 Use tax imposed.
(a) An excise tax is imposed on the storage, use, or other consumption in this
state of tangible personal property; prewritten computer software delivered
electronically or by load and leave; or services as defined in §
44-18-7.3, including a motor vehicle, a boat, an airplane, or a trailer,
purchased from any retailer at the rate of six percent (6%) of the sale price
of the property.
(b) An excise tax is imposed on the storage, use, or other
consumption in this state of a motor vehicle, a boat, an airplane, or a trailer
purchased from other than a licensed motor vehicle dealer or other than a
retailer of boats, airplanes, or trailers respectively, at the rate of six
percent (6%) of the sale price of the motor vehicle, boat, airplane, or trailer.
(c) The word "trailer," as used in this section and in §
44-18-21, means and includes those defined in § 31-1-5(a) (e) and
also includes boat trailers, camping trailers, house trailers, and mobile homes.
(d) Notwithstanding the provisions contained in this section
and in § 44-18-21 relating to the imposition of a use tax and liability
for this tax on certain casual sales, no tax is payable in any casual sale:
(1) When the transferee or purchaser is the spouse, mother,
father, brother, sister, or child of the transferor or seller;
(2) When the transfer or sale is made in connection with the
organization, reorganization, dissolution, or partial liquidation of a business
(i) The last taxable sale, transfer, or use of the article
being transferred or sold was subjected to a tax imposed by this chapter;
(ii) The transferee is the business entity referred to or is
a stockholder, owner, member, or partner; and
(iii) Any gain or loss to the transferor is not recognized
for income tax purposes under the provisions of the federal income tax law and
treasury regulations and rulings issued thereunder;
(3) When the sale or transfer is of a trailer, other than a
camping trailer, of the type ordinarily used for residential purposes and
commonly known as a house trailer or as a mobile home; or
(4) When the transferee or purchaser is exempt under the
provisions of § 44-18-30 or other general law of this state or special act
of the general assembly of this state.
(e) The term "casual" means a sale made by a person other
than a retailer, provided, that in the case of a sale of a motor vehicle, the
term means a sale made by a person other than a licensed motor vehicle dealer
or an auctioneer at an auction sale. In no case is the tax imposed under the
provisions of subsections (a) and (b) of this section on the storage, use, or
other consumption in this state of a used motor vehicle less than the product
obtained by multiplying the amount of the retail dollar value at the time of
purchase of the motor vehicle by the applicable tax rate; provided, that where
the amount of the sale price exceeds the amount of the retail dollar value, the
tax is based on the sale price. The tax administrator shall use as his or her
guide the retail dollar value as shown in the current issue of any nationally
recognized, used-vehicle guide for appraisal purposes in this state. On request
within thirty (30) days by the taxpayer after payment of the tax, if the tax
administrator determines that the retail dollar value as stated in this
subsection is inequitable or unreasonable, he or she shall, after affording the
taxpayer reasonable opportunity to be heard, re-determine the tax.
(f) Every person making more than five (5) retail sales of
tangible personal property or prewritten computer software delivered
electronically or by load and leave, or services as defined in § 44-18-7.3
during any twelve-month (12) period, including sales made in the capacity of
assignee for the benefit of creditors or receiver or trustee in bankruptcy, is
considered a retailer within the provisions of this chapter.
(g)(1) "Casual sale" includes a sale of tangible personal
property not held or used by a seller in the course of activities for which the
seller is required to hold a seller's permit or permits or would be required to
hold a seller's permit or permits if the activities were conducted in this
state, provided that the sale is not one of a series of sales sufficient in
number, scope, and character (more than five (5) in any twelve-month (12)
period) to constitute an activity for which the seller is required to hold a
seller's permit or would be required to hold a seller's permit if the activity
were conducted in this state.
(2) Casual sales also include sales made at bazaars, fairs,
picnics, or similar events by nonprofit organizations, that are organized for
charitable, educational, civic, religious, social, recreational, fraternal, or
literary purposes during two (2) events not to exceed a total of six (6) days
duration each calendar year. Each event requires the issuance of a permit by
the division of taxation. Where sales are made at events by a vendor that holds
a sales tax permit and is not a nonprofit organization, the sales are in the
regular course of business and are not exempt as casual sales.
(h) The use tax imposed under this section for the period
commencing July 1, 1990, is at the rate of seven percent (7%). In recognition
of the work being performed by the streamlined sales and use tax governing
board, upon passage of any federal law that authorizes states to require remote
sellers to collect and remit sales and use taxes, effective the first (1st) day
of the first (1st) state fiscal quarter following the change, the rate imposed
under § 44-18-18 shall be reduced from seven percent (7.0%) to six and
one-half percent (6.5%). The six and one- half percent (6.5%) rate shall take
effect on the date that the state requires remote sellers to collect and remit
sales and use taxes.
History of Section.
(P.L. 1947, ch. 1887, art. 2, § 23; P.L. 1951, ch. 2733, art. 2, § 2;
P.L. 1952, ch. 3026, art. 2, § 2; P.L. 1953, ch. 3150, art. 2, § 2;
P.L. 1954, ch. 3254, art. 2, § 2; P.L. 1955, ch. 3521, art. 2, § 2;
P.L. 1956, ch. 3739, art. 2, § 2; P.L. 1956, ch. 3800, § 1; G.L.
1956, § 44-18-20; R.P.L. 1957, ch. 44, art. 2, § 2; P.L. 1958, ch.
17, art. 7, § 1; P.L. 1958, ch. 175, § 1; P.L. 1959, ch. 169, art. 3,
§ 2; P.L. 1960, ch. 64, § 2; P.L. 1964, ch. 234, § 3; P.L. 1965,
ch. 169, § 1; P.L. 1965, ch. 232, art. 4, § 3; P.L. 1966, ch. 174,
§ 1; P.L. 1967, ch. 179, art. 2, § 7; P.L. 1974, ch. 151, art. 2,
§ 1; P.L. 1976, ch. 198, art. 4, § 1; P.L. 1977, ch. 135, § 1;
P.L. 1977, ch. 200, art. 4, § 1; P.L. 1990, ch. 65, art. 14, § 1;
P.L. 1991, ch. 6, art. 4, § 1; P.L. 1993, ch. 359, § 1; P.L. 1995,
ch. 90, § 1; P.L. 1995, ch. 169, § 1; P.L. 2011, ch. 151, art. 19,
§ 24; P.L. 2012, ch. 241, art. 21, § 3; P.L. 2013, ch. 144, art. 9,
§ 3; P.L. 2014, ch. 528, § 63.)