Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 70 - Sales and Use Tax › Part 11 - Exemption of Sales by Writers, Composers and Artists (280-RICR-20-70-11) › Section 280-RICR-20-70-11.6 - Sales and Use Tax Exemption

Current through June 14, 2024
A. The exemption
				 from sales and use tax for sales of artistic works applies to sales by:
1. An individual who is a resident of and has
				 a principal place of business situated in this state, and has been determined
				 by the tax administrator, in consultation with the council, to have written,
				 composed, or executed, either solely or jointly, a work or works, by the
				 individual. Such determination shall be made after consideration of any
				 evidence submitted by the individual.
2. A writer, composer or artist conducting
				 their business as a legal entity organized and registered under the laws of
				 this state and that has its principal place of business situated in this state,
				 and has been determined by the tax administrator, in consultation with the
				 council, to have written, composed, or executed, either solely or jointly, a
				 work or works. Such determination shall be made after consideration of any
				 evidence submitted by the entity.
3. Any art gallery located in the state of
				 Rhode Island.
a. Example 1. An art gallery
				 located in Providence, RI sells a "work" for the price of $1000. Payment is
				 made directly to the art gallery operator. This sale is not subject to sales
				 and use tax, provided that the operator of the art gallery has submitted an
				 "Application for Sales Tax Exemption for Artistic Works" and received an
				 exemption number from the Division of Taxation prior to the sale, which must be
				 written on the customer invoice.
b.
				 Example 2. A "pop-up gallery" located at a temporary location in Rhode Island
				 sells a "work" for the price of $1000. Payment is made directly to the art
				 gallery operator. This sale is not subject to sales and use tax provided that
				 the operator of the art gallery has submitted an "Application for Sales Tax
				 Exemption for Artistic Works" and received an exemption number from the
				 Division of Taxation prior to the sale. The exemption number assigned by the
				 Division of Taxation must be shown on the customer invoice.
c. Example 3. A promoter schedules an art
				 festival in a city or town in Rhode Island and rents out space at the event to
				 individual vendors who will be selling "works". The promoter, upon submitting
				 an application and in consideration of the type of art items being sold
				 (works), will be issued a blanket "Certificate of Exemption" by the Division of
				 Taxation. This exemption will exempt the sale of a "work" by all vendors
				 operating at the show who have not individually filed for and received a
				 numbered exemption certificate for the sale of artistic "works." Vendors must
				 still obtain a temporary sales tax permit from the promoter of the show. At the
				 conclusion of the show, vendors must file with the promoter a sales tax return
				 with payment for any items subject to sales tax. In addition, the vendor must
				 also fill out and submit along with the sales tax return, a reconciliation of
				 the sales and activity of the show. Failure to submit the sales tax return or
				 the reconciliation will prevent the vendor from being able to participate in
				 future shows.