Stay up to date with sales tax: Join our mailing list!

Starting July 28, 2002 professional limited liability companies may operate in the state of Rhode Island. Prior to this amendment, LLC's were strictly prohibited from performing or rendering any professional services under the Rhode Island Limited Liability Company Act. (Ch. 205(H.B. 6757), Laws 2002, effective July 28, 2002)


A Rhode Island exemption was allowed for materials purchased in connection with an Economic Development Corporation (EDC) project. As a lessee of the EDC, the company was entitled to the same sales and use tax exemptions that the EDC has. All materials could be included as long as they were being used for the project and would have a useful life of more than one year. (Ruling Request No. 2002-01, Rhode Island Division of Taxation, September 2, 2002)


Company cars that were purchased out-of-state but used by a corporation in the state of Rhode Island are subject to Rhode Island use tax because these vehicles created a taxable presence. (Administrative Hearing Decision No. 2001-20, Rhode Island Division of Taxation, December 5, 2001)



Scroll to Top