NEW: Changes to Sales Tax Begin Saturday

NEW: Changes to Sales Tax Begin Saturday

Changes to the Rhode Island sales tax will take effect tomorrow. Starting October 1, 2011, the state’s 7 percent sales and use tax will officially apply to all of the following:

• over-the-counter drugs (also known as non-prescription drugs);
• computer software downloads – including smartphone apps; and
• certain package tours and scenic and sightseeing transportation services.

Retailers or others who must begin collecting and remitting Rhode Island sales tax because of the changes need to complete and file the state’s business application and registration form to obtain a sales tax permit. Businesses or others with questions about the changes may call the Tax Division’s excise tax section at (401) 574-8955.

The Tax Division has held public hearings throughout the state in recent weeks to explain to businesses and other taxpayers how the new provisions will work. The Tax Divisionhas also reached out directly to retailers, tour operators and others.

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