One of the US states that levies a sales tax on retail transactions is Rhode Island. While the state levies a 7% general sales tax, several items—including clothing—are exempt from this tax. So, in Rhode Island, are clothes tax-exempt? Yes, although there are a few exceptions.
Clothing, footwear, and accessories intended for human use are exempt from sales tax in Rhode Island. Jewelry, watches, and athletic goods are examples of non-clothing items that are taxable. Rentals of formal attire, costumes, and apparel meant for use in dangerous workplaces are all subject to tax.
You must decide if the item is regarded as clothing under state law in order to calculate the tax on clothing in Rhode Island. There is no sales tax if it is. However, the standard sales tax rate of 7% will be charged if the item is not regarded as clothes. For instance, a jacket you buy and expect to wear frequently is tax-exempt. However, if you buy a jacket that is intended for use in risky working conditions, you must pay taxes on it.
Furthermore, it’s crucial to remember that Rhode Island levies a use tax in addition to its sales tax. Items bought outside of Rhode Island but utilized inside the state are subject to use tax. Therefore, you can be liable for the use tax if you order clothing online from a merchant who does not charge Rhode Island sales tax.
In conclusion, Rhode Island does not levy sales tax on items made for human use, such as clothing, footwear, and accessories. Jewelry and athletic equipment are examples of non-clothing items that are taxable. You can get further information from the Rhode Island Division of Taxation if you’re not sure whether anything is taxed. And if you buy something from an out-of-state merchant, remember to account for the use tax to avoid any unpleasant surprises. Scarves are exempt from sales tax in Rhode Island since they are categorized as apparel.
If the item being transported is a tax-exempt item, such as apparel, Rhode Island does not impose sales tax on delivery.
Purchases made outside of Rhode Island that would have been subject to the state’s sales tax if they had been made there are liable to the use tax levied by the state. In essence, it’s a mechanism to make sure that people in Rhode Island who shop at out-of-state stores nevertheless pay taxes to the state.