Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 70 - Sales and Use Tax › Part 25 - Use Tax Generally (280-RICR-20-70-25) › Section 280-RICR-20-70-25.11 - Credit Against the Rhode Island Use Tax for Sales or Use Tax Paid in Another Taxing Jurisdiction

Current through June 14, 2024
A. A taxpayer, when
				 computing the use tax due on an article brought into Rhode Island for use,
				 storage or other consumption therein, may credit the amount of the sales or use
				 tax which he or she was lawfully obligation to pay and paid in another taxing
				 jurisdiction on such article.
B.
				 Liability for the use tax on tangible personal property purchased outside Rhode
				 Island arises at the time such property is first stored, used or consumed in
				 this state. Even though liability for the tax on such use, storage or
				 consumption of property purchased outside Rhode Island accrues at the time
				 aforesaid, payment of said tax is not required to be made until the 20th day of
				 the month following the month during which such use, storage or consumption
				 first occurred.
C. In considering
				 the imposition of the Rhode Island use tax, the significant factor is the date
				 the property is first used, stored or consumed in Rhode Island, and not the
				 date of its purchase outside this state or the due date for the payment of such
				 tax.
D. Before any person who is
				 liable for the payment of the Rhode Island use tax can claim a credit for any
				 sales or use tax paid in another taxing jurisdiction, he or she must produce
				 proof of the payment of such tax in the other jurisdiction.
E. Accordingly, as evidence of such payment,
				 the taxpayer is required to show to the Tax Administrator or to his
				 representative either the original invoice or a duplicate copy thereof,
				 describing the article purchased, the selling price thereof, the amount of the
				 sales or use tax paid thereon, the date of purchase, the name and address of
				 the seller and the seller's sales tax permit number, and the name and address
				 of the purchaser. The invoice or copy must show that payment of the tax by the
				 purchaser has been duly receipted for by the seller.
F. Where, due to the nature of the item
				 purchased from a retailer (e.g. a motor vehicle) or because of a taxable casual
				 sale having been made (e.g. an airplane, boat, trailer or motor vehicle), the
				 purchaser is required to pay the sales or use tax imposed by another taxing
				 jurisdiction directly to the Tax Division or other governmental agency of the
				 jurisdiction, the receipt issued by such division or agency showing payment of
				 the tax on the item and the bill of sale therefore must be presented to the Tax
				 Administrator or his representative before any credit for tax payment can be
				 claimed.
G. It is emphasized that
				 no such credit can be claimed unless the sales or use tax imposed in another
				 taxing jurisdiction has actually been paid by the purchaser and the purchaser
				 was lawfully obligated to pay such tax in the other taxing jurisdiction prior
				 to the inception of his obligation to this state.