ALERT: Scam Calls Rhode Island taxpayers are being targeting by spam/scam phone calls claiming to be from the RI Division of Taxation. These calls may appear to originate from legitimate Division of Taxation phone numbers. Call us at 401-574-8829, option #3, to confirm authenticity of any unexpected or suspicious calls. More information is available in Advisory 2024-18.
Due Date Extensions The Division of Taxation extends certain due dates to July 15, 2024 in response to the April 4, 2024 announcement from the IRS regarding federal due date extensions due to severe storms and flooding. Refer to Advisory 2024-16 and Advisory 2024-17 for further guidance regarding Rhode Island due dates.
Ruling Request No. 95-01 Declaratory Rulings Ruling Request No. 95-01 Re: Request for Ruling Regarding the Sales/Use Tax on Boats Request for Ruling On behalf of your client, ("Utility"), you request a declaratory ruling regarding the application of the sales/use tax to the purchase, use or resale of a vessel in Rhode Island Facts Utility is a regulated public utility engaged in the business of generating electricity. Utility currently contracts under a time charter with the present owner of the vessel to transport coal from ports in the mid-Atlantic states to Utility's power plants in Salem and Somerset, Massachusetts. On November 1, 1994, Utility gave notice of termination of the time charter. Pursuant to the time charter termination, Utility has entered into agreements to purchase the vessel and simultaneously resell it. The vessel is a 38,234 Long Tons total deadweight capacity Self-Unloading Bulk Carrier and is 665 feet long, 95 feet wide, 56 feet deep with a draft of 34 feet. The purpose of the purchase and simultaneous sale is to terminate the related time charter contract with the present owners of the vessel who will be replaced by the new owner. Utility acts as purchaser and seller only to facilitate the transaction. The vessel is intended to be received from the present owner and simultaneously delivered to the new owner in the State of Rhode Island. Ruling Requested Utility respectfully petitions for a declaratory ruling that neither the purchase nor the simultaneous sale of the vessel will be subject to Rhode Island sales or use taxes. Discussion Rhode Island General Law 44-18-30 (XX) entitled "Boats or vessels generally" exempts from taxation the sale, storage, use or other consumption in this state of any new or used boat. "Boat" is defined in Webster's Dictionary, second edition (unabridged), as including "ship" or "vessel." Therefore, the purchase of the vessel falls within the exemption granted by R.I.G.L. 44-18-30 (XX). Ruling Neither the purchase nor the simultaneous sale of the vessel will be subject to the Rhode Island sales or use taxes. This ruling may be relied upon by this taxpayer and shall be valid until the applicable statutory provisions are amended in a manner requiring a different result. R. Gary Clark Tax Administrator March 28, 1995