Businesses For Sale In Rhode Island

Like most other states in the Northeast, Rhode Island has both a statewide income tax and sales tax. The income tax is progressive tax with rates ranging from 3.75% up to 5.99%.

The sales tax is a levy imposed on the retail sale, rental or lease of many goods and services at a rate of 7%. Any sale is a retail sale if the property or service sold will be used and not resold in the regular course of business. The tax is collected by the vendor and remitted directly to the state.

Most businesses operating in or selling in the state of Alaska are required to purchase a resale certificate annually. Even online based businesses shipping products to Alaska residents must collect sales tax.The certificate also allows you to buy items without paying sales tax that you will be reselling.

Five U.S. states (New Hampshire, Oregon, Montana, Alaska and Delaware) do not impose any general, statewide sales tax on goods or services. Of the 45 states remaining, four (Hawaii, South Dakota, New Mexico and West Virginia) tax services by default, with exceptions only for services specifically exempted in the law.

Typically, early sales tax laws allowed only the taxation of tangible personal property (TPP), rather than taxing services. As the United States has shifted from a manufacturing-based economy to a service-based economy, many states started to impose sales and use tax on services as well.

Step 1 Begin by downloading the Rhode Island Resale Certificate. Step 2 Include the buyer's retail permit number. Step 3 List what the buyer's business sells. Step 4 Enter the name of the seller.

The Rhode Island consumer use tax rate is 7%, which is the same rate as the state sales tax.

Are services subject to sales tax in Rhode Island? "Goods" refers to the sale of tangible personal property, which are generally taxable. "Services" refers to the sale of labor or a non-tangible benefit. In Rhode Island, specified services are taxable.

In Rhode Island, certain items may be exempt from the sales tax to all consumers, not just tax-exempt purchasers. Several examples of items that exempt sales tax are printed packages, booklets, letterheads, billheads, manufacturing operations such as mining, and fuel oil and kerosene.