Sales Tax Exempt Organizations

Sales Tax Exempt Organizations

R.I. Gen. Laws 44-18-30.1 allows for a qualified exempt organization to apply for a Sales Tax Exemption Certificate. This Exemption Certificate will enable the organization to make purchases at retail without paying sales tax as long as the Exemption Certificate is presented prior to the sale and the sale is a qualified purchase for the organization. In 2017, the Rhode Island General Assembly passed new legislation that established that Sales Tax Exemption Certificates are to be valid for four (4) years from the date of issuance. The legislation also established that Exemption Certificates issued on or before July 1, 2017 would expire on June 30, 2021.

 

In accordance with R.I. Gen. Laws § 44-18-30(5)(i) Charitable, educational, and religious organizations may be exempt from the sale to, as defined in this section, and from the storage, use, and other consumption in this state, or any other state of the United States of America, of tangible personal property by:

hospitals not operated for a profit; "educational institutions" as defined in subdivision (18) not operated for a profit; churches, orphanages, and other institutions or organizations operated exclusively for religious or charitable purposes; interest-free loan associations not operated for profit; nonprofit, organized sporting leagues and associations and bands for boys and girls under the age of nineteen (19) years; the following vocational student organizations that are state chapters of national vocational student organizations:

  • Distributive Education Clubs of America (DECA);
  • Future Business Leaders of America, Phi Beta Lambda (FBLA/PBL);
  • Future Farmers of America (FFA);
  • Future Homemakers of America/Home Economics Related Occupations (FHA/HERD);
  • Vocational Industrial Clubs of America (VICA); organized nonprofit golden age and senior citizens clubs for men and women; and parent-teacher associations; and from the sale, storage, use, and other consumption in this state, of and by the Industrial Foundation of Burrillville, a Rhode Island domestic nonprofit corporation.

If your organization was issued a Sales Tax Exemption Certificate on or before July 1, 2017, your certificate expired on June 30, 2021.

If your organization was issued a Sales Tax Exemption Certificate after July 1,2017, your certificate expires four (4) years after issuance.

You may renew the Sales Tax Exemption Certificate for your organization by completing the Sales & Use Exemption for an Exempt Organization Form, Form EXO-SUE, listed on the Audit Forms page.

Please mail your completed form along with your $25 fee to:
RI Division of Taxation
Audit & Investigation Unit
One Capitol Hill
Providence, RI 02908

If you have not been previously issued a Sales Tax Exemption Certificate, please use the Sales & Use Exemption for an Exempt Organization Form, Form EXO-SUE, listed on the Audit Forms page. 

Please mail your completed form along with your $25 fee to:
RI Division of Taxation
Audit & Investigation Unit
One Capitol Hill
Providence, RI 02908

Resources

Statute: R.I. Gen. Laws 44-18-30.1

 

Contact Information

Audit and Investigation Section

Email:  Tax.Audit@tax.ri.gov

Phone:  401.574.8962 

Fax:  401.574.8916