General Assembly Passes Bill to Collect Sales Taxes from Online Retailers
Wednesday, March 27, 2019
The Rhode Island General Assembly passed legislation to collect sales tax from online retailers.
The bill was introduced by Senator William Conley Jr.
“Out-of-state retailers should adhere to the state sales tax the same as every store on Main Street. It’s a question of fairness. This legislation is good news for Rhode Island’s brick-and-mortar businesses, which will now be competing on a more level playing field with their online counterparts,” said Conley.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThe bill now moves to the governor’s office.
The Legislation
The legislation would require a remote seller to register in Rhode Island for a permit to make sales at retail and collect and remit sales and use tax on all taxable sales into the state.
The act follows a U.S. Supreme Court case, South Dakota v. Wayfair, which granted states the authority to collect a sales tax on online purchases made by state residents.
In that case, the Supreme Court determined that retailers don’t have to have physical presence in the state in order for the state to collect taxes — or that physical presence can be defined in other ways, such as an online presence.
Representative Marvin Abney added, “That court decision and this legislation is a real victory for Rhode Island’s small businesses. As long as online retailers were getting away with not paying sales tax, they had an unfair market advantage. This legislation will help us to catch up with the technological realities of the marketplace.”
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