Signed by Governor Gina Raimondo

Vote Smart's Synopsis:

Vote to pass a bill that requires out of state retailers collect state sales tax.

Highlights:

• Requires any remote seller, marketplace seller, marketplace facilitator, and/or referrer who is not collecting and remitting sales tax to comply with that act if they have not been collection or remitting sales tax in this state and, in the immediately preceding calendar year either (Sec. 3):

• Has gross revenue from the sale of tangible personal property, prewritten computer software delivered electronically or by load and leave, vendor-hosted prewritten computer software, and/or has taxable services delivered into this state equal to or exceeding $100,000; or

• Has sold tangible personal property, prewritten computer software delivered electronically or by load and leave, vendor-hosted prewritten computer software, and/or has taxable services for delivery into this state in 200 or more separate transactions.

• Requires a remote seller, referrer, and marketplace facilitator to register in this state for a permit to make sales and retail and collect and remit sales and use tax on all taxable sales in the state (Sec. 3).

• Requires a marketplace facilitator to collect sales and use tax on all sales made through the marketplace to purchasers in this state whether or not the marketplace seller has or is required to have a permit to make sales at retail or would have been required to collect and remit sales and use tax had the sale not been made through the marketplace provider (Sec. 3).  

• Requires a marketplace facilitator to certify to its marketplace sellers that it will collect and remit sales and use tax on sales of taxable items made through the marketplace (Sec. 3).

• Requires a marketplace facilitator to be subject to audit by the tax administrator with respect to all retail sales for which it is required to collect and pay the tax imposed under Rhode Island General Laws (Sec. 3).

• Prohibits the tax administrator from auditing the marketplace seller for the same retail sales as the marketplace facilitator (Sec. 3).

• Prohibits a class action lawsuit from  being brought against a marketplace facilitator on behalf of purchasers arising from or in any way related to an overpayment of sales or use of tax collected by the marketplace facilitator, regardless of whether such action is characterized as a tax refund claim (Sec. 3).

• Defines “marketplace” as a physical or electronic place including, but not limited, to a store, booth, website, catalog, television, radio broadcast, or a dedicated sales software application where tangible individual property, prewritten computer software delivered electronically or by load and leave, vendor-hosted prewritten computer software, and/or taxable services that are sold or offered for sale for delivery in this state regardless of whether the tangible individual property, prewritten computer software delivered electronically or by load and leave, vendor-hosted prewritten computer software have a physical presence in the state (Sec. 2)

• Defines “marketplace facilitator” as any individual or individuals that contracts or otherwise agrees with a marketplace seller to facilitate for consideration, regardless of whether deducted as fees from the transaction, the sale of the marketplace seller’s products through a physical or electronic marketplace operated by the individual or individuals, and engages (Sec. 2):

• Directly or indirectly, through one or more affiliated persons in any of the following: or

• Transmitting or otherwise communicating the offer or acceptance between the buyer and seller;

• Owning or operating the infrastructure, electronic or physical, or technology that brings buyers and sellers together;

• Providing a virtual currency that buyers are allowed or required to use to purchase products from the seller; or

• Software development or research and development activities related to any of the activities, if such activities are directly related to a physical or electronic marketplace operated by the person or an affiliated person; and

• In any of the following activities with respect to the seller’s products:

• Payment processing services;

• Fulfillment or storage services;

• Listing products for sale;

• Setting prices;

• Branding sales as those of the marketplace facilitator;

• Order taking;

• Advertising or promotion;

• Providing customer service or accepting or assisting with returns or exchanges.

• Defines “marketplace seller” as an individual, not a related party to a marketplace facilitator, who has an agreement with a marketplace facilitator and makes retail sales of tangible personal property, prewritten computer software delivered electronically or by load and leave, vendor-hosted prewritten computer software, and/or taxable services through a marketplace owned, operated, or controlled by a marketplace facilitator, whether or not such individual is required to register to collect and remit sales tax (Sec. 2).

• Defines “remote seller” as any seller, other than a marketplace facilitator or referrer, who does not have a physical presence in this state and makes retail sales to purchasers (Sec. 7).

• Specifies that the effective date of this act is 90 days after the enactment of this act (Sec. 3).

Full Bill Text