Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 70 - Sales and Use Tax › Part 37 - Casual Sales Generally (280-RICR-20-70-37) › Section 280-RICR-20-70-37.6 - Casual Sales

Current through June 14, 2024
A. The tax does not
				 apply to casual sales made by a person not regularly engaged in the business of
				 selling tangible personal property. It is important to note, however, that the
				 tax applies to the sale of a motor vehicle, or trailer even though such sale is
				 a casual sale, and whether or not it is in fact registered or required to be
				 registered by the purchaser with the Registry of Motor Vehicles. Casual sales
				 of house trailers and mobile homes of the type ordinarily used for residential
				 purposes are exempt. Casual sales of all other trailers, including camping
				 trailers, are taxable.
B. Casual
				 sales include 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(s) or would be required to hold a seller's permit(s) if the activities
				 were conducted in this state. It is further provided such sale is not one of a
				 series of sales sufficient in number, scope and character (more than five (5)
				 in any twelve-month period) to constitute an activity for which the person 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.
C. Examples of Exempt Casual Sales
1. A person selling household furniture, or
				 an insurance agent selling a typewriter;
2. Sales by executors, administrators,
				 trustees, receivers, other fiduciaries and other proper officers pursuant to a
				 court order except when they continue the operation of the business of selling
				 tangible personal property at retail;
3. Legal sales, executions, etc., under court
				 order or by a proper officer;
4.
				 Sales at bazaars, fairs, picnics or similar events by nonprofit organizations
				 which 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 during each calendar year. Such organization
				 may, however, request of the tax administrator to have more than two (2) events
				 in a calendar year so long as those events do not exceed, in total, six (6)
				 days during such calendar year. Promoters of such events are required to apply
				 to the Tax Division for a promoter's permit which permit shall be issued
				 without cost to the applicant. All vendors at such events, including nonprofit
				 organizations, are required to have a valid permit to make sales at retail.
a. Provided, however, where sales are made at
				 such events by a vendor or organization holding a permit to make sales at
				 retail which is not a nonprofit organization organized for the purposes stated
				 above or by a vendor or organization which is not a nonprofit organization
				 organized for the purposes stated above and which is otherwise required to hold
				 such a permit because its selling events are in excess of the number permitted,
				 such sales constitutes sales in the regular course of business and are not
				 exempted as casual sales.
5. A transfer of a motor vehicle, or trailer
				 upon which the transferor has paid the tax, in connection with the
				 organization, reorganization, dissolution or partial liquidation of a business
				 entity where no gain or loss is recognized for income tax purposes;
				 or
6. Casual sales are exempt where
				 the transferee is the spouse, mother, father, brother or sister of the
				 transferor.
7. A bulk sale of
				 assets. However in the case of a retailer, the sale must occur after the retail
				 business for which the retailer had a permit has ceased.