This regulation implementsR.I. Gen. Laws Chapter 44-18.1. This regulation provides for ExemptOrganizations.
This regulation ispromulgated pursuant to R.I. Gen. Laws Chapter 44-18.1 as amended,R.I. Gen. Laws §§ 44-1-4, 44-18.1-1 and 44-19-33.Additionally these regulations have been prepared in accordance withthe requirements of R.I. Gen. Laws Chapter 42-35 - Rhode IslandAdministrative Procedures Act.
The terms and provisions ofthese rules and regulations shall be liberally construed to permitthe Department of Revenue to effectuate the purposes of R.I. Gen.Laws Chapter 44-18.1 and other applicable state laws and regulations.
If any provision of theserules and regulations, or the application thereof to any person orcirc*mstances, is held invalid by a court of competent jurisdiction,the validity of the remainder of the rules and regulations shall notbe affected thereby.
Any club or organizationseeking exemption as an organized nonprofit golden age or seniorcitizens club for men and women in accordance with R.I. Gen. Laws §44-18-30(5) must be exclusively comprised of membership of personsage 62 years or older and/or persons under 62 years of age who aredisabled and who reside in subsidized housing.
The tax does not apply tocharges made by homes for aged and convalescents licensed by theState of Rhode Island, including nursing homes, assisted livingfacilities, rest homes and sanatoriums, which have in constantattendance at least one registered or practical nurse, for meals,rooms and other services which are comparable to services rendered byhospitals such as the furnishing of nursing care, supervision,custodial care, administering of special treatments or medications asprescribed by physicians and the supplying of special diets, etc.
A.Sales of tangible personalproperty to the Federal Government or to any of its agencies orinstrumentalities, to the State of Rhode Island, or any of its citiesor towns, and to any redevelopment agency created pursuant to R.I.Gen. Laws Chapter 45-31 are not subject to the tax.
1.Such governmental agenciesor instrumentalities are not required to furnish exemptioncertificates to their suppliers. However, the seller must makeappropriate notations in his/her records covering his/her sales tosuch governmental agencies or instrumentalities.
B.Sales to all other exemptorganizations, including hospitals not operated for profit,educational institutions not operated for profit, churches,orphanages, and other institutions or organizations operatedexclusively for religious or charitable purposes, interest free loanassociations not operated for profit, nonprofit organized sportingleagues and associations and bands for boys and girls under the ageof 19 years, the following vocational student organizations that arestate chapters of national vocational students organizations:distributive education clubs of America, (DECA); future businessleaders of America/Phi Beta Lambda (FBLA/PBL); future farmers ofAmerica (FFA); future homemakers of America/home economics relatedoccupations (FHA/HERD); and organized nonprofit Golden Agers andsenior citizens clubs for men and women, and parent-teacherassociations are exempt from sales and use tax, but each suchorganization must file an application for and obtain from the TaxAdministrator an exemption certificate covering such exemptorganizations.
1.The exemption applies onlyto such purchases as are made by the organization itself for its ownpurposes and not to purchases by any of its members individually. Anindividual member or group of members belonging to such an exemptorganization must pay the tax when purchasing meals, or othertangible personal property for their individual or collective use orconsumption.
C.Exemption certificatesissued by other states will not be recognized in this state; however,out-of-state exempt organizations of the same type may apply for anexemption certificate in the same manner as a Rhode Islandorganization. An application form may be obtained from the Divisionof Taxation. No tax exempt purchases may be made by suchorganizations until an exemption certificate has been approved andissued to such organization. Each such certificate shall beidentified by a certificate number.
1.Sales to exempt entities,other than the Federal government, the State government and municipalgovernments of this State, will be deemed to be taxable unless theretailer obtains a copy of the exemption certificate (issued by theRI Division of Taxation) or obtains a properly completed exemptioncertificate authorized by the Streamlined Sales and Use TaxAgreement.
Inasmuch as incorporatedvolunteer fire companies are regarded as operating in a governmentalcapacity in the town in which they are located, the tax does notapply to sales made to such volunteer fire companies provided theyhave obtained a certificate of exemption from this office and furnishthe vendor with their exemption number.
A.Definitions:
1."Educationalinstitutions" means those institutions of learning which areengaged in giving courses of instruction to student bodies, i.e.,schools, academies, colleges and universities. These, in turn, areregarded as institutions empowered by this state to confer diplomas,educational, literary or academic degrees, and which have a regularfaculty, curriculum and organized body of pupils or students inattendance throughout the usual school year, and which keep andfurnish to students and others records required and accepted forentrance to schools of secondary, collegiate or graduate rank.
2."Textbook" meansand includes books pertaining to educational course of instructionundertaken by students or faculty at elementary or secondary schoolsor at post-secondary institutions of higher education. "Textbooks"do not include such items as magazines, periodicals, pamphlets,circulars, audio or video cassettes, audio or video tapes, phonographrecords or video or compact disks.
3."Used textbooks"means and includes those textbooks previously purchased and/or usedby students or faculty. As such "used textbooks" does notinclude textbooks which are damaged, shopworn or outdated or thesubject matter of which may be obsolete.
B.Sales to
1.Sales of tangible personalproperty made to educational institutions not operated for profit areexempt from the sales or use tax.
C.Sales by
1.Educational institutionswhich make sales of new or used textbooks to members of their studentand faculty bodies are not regarded as engaged in the business ofmaking sales at retail within the meaning of the provisions of theRhode Island sales and use tax act. Accordingly, sales by suchinstitutions to students and faculty of textbooks and supplies usedin connection with any of the courses offered by such institutionsare not subject to the tax. However, the sale by such institutions ofany other items of tangible personal property such as jewelry, china,pennants, candy and cosmetics are subject to the sales tax. The saleof such taxable items requires a permit to make sales at retail andthe collection of the tax. The enumeration of the foregoing taxableitems is made by way of illustration and not limitation.
2.Sales of used textbooks byany purveyor are exempt. Any vendor or purveyor selling usedtextbooks as exempt items must label the volumes "usedtextbooks" and must maintain adequate inventory and salesrecords to separate such items.
A.Whenever exemption from taxon purchases, rental charges or room rental charges is claimed by anyemployee, representative or other official of the United StatesGovernment, or of the State of Rhode Island or of any of its cities,towns or other political subdivisions, or of any exempt organization,such exemption will apply only if payment is made directly by suchagency or organization.
B.In case the official paysthe bill (even though the bill be made out to the governmental agencyor exempt organization by whom the official or employee is employedor which the official or employee represents) the tax applies. Insuch case, it is immaterial that such official is reimbursed or thatthe economic burden of the tax is passed on to the governmentalagency or exempt organization.
C.THE RETAILER MUST MAINTAINRECORDS TO SUPPORT AND IDENTIFY ALL SUCH EXEMPT SALES OR RENTALS.
A.Sales of tangible personalproperty sold by any blind person who conducts a retail business in apublic building under the supervision of the Rhode Island Division ofServices for the Blind and Visually Impaired are exempt from theRhode Island sales tax. Included in exempt sales are sales made fromvending machines located in vending facilities licensed pursuant toR.I. Gen. Laws § 40-9-11.1 whether the licensee owns the vendingmachines or receives a percentage or commission of such sales fromthe owner of the vending machines.
B.Accordingly, any suchretailer shall not collect any sales tax on the amount charged by himor her for any tangible personal property which he or she sells insuch a retail establishment. Moreover, the retailer is not requiredto file sales tax returns with the Division of Taxation.
C.It is emphasized that theexemption is limited to blind persons who operate retail businessesin the manner and under the supervision referred to in the firstparagraph of this regulation.
A.Rhode Island nonprofiteleemosynary organizations formed to sponsor and support youthactivities are exempted from the requirement to charge, collect andremit the sales tax on items sold for not more twenty dollars($20.00) each when such items are sold for the purposes of supportingsuch youth activities.
B.Such organizations areliable, except as otherwise provided by law, for the sales/use tax onall other items purchased by them. Similarly, such organizations arerequired to charge and collect the sales tax on items sold at morethan twenty dollars ($20.00) each and on all items sold for purposesother than the support of youth activities which such organization isformed to sponsor and support.
C.Additionally, accreditedelementary and secondary schools are relieved of the requirement tocharge, collect and remit the sales tax on items sold for not morethan twenty dollars ($20.00) each when such items are sold for thepurpose of such schools or for the organized activities of thestudents enrolled therein.
D.Such schools are liable,except as otherwise provided by law, for the sales/use tax on allother items purchased by them. Similarly, such schools are requiredto charge and collect the sales tax on items sold at more than twentydollars ($20.00) each and on all items sold for purposes other thanthe purpose of such schools or of organized activities of thestudents enrolled therein.
E.The special provisionsdescribed above may not be transferred, granted or delegated to otherpersons acting as agents for the organizations or schools or toprivate concessionaires.
