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Rhode Island Nonprofits, Here’s How to Apply for the Sales Tax Exemption Renewal

July 01, 2021

Did you recently receive a notice from the DOT to renew your sales tax exemption? Applications are now due August 30, 2021. Here’s what you should know.

*Editor's Note: This blog has been updated as of July 1, 2021 for accuracy and comprehensiveness.

If you are a Rhode Island Nonprofit and received a Division of Taxation notice to renew your exemption, don’t panic. This renewal is for nonprofit organizations that currently have a sales and use tax exemption. Make note that the application deadline has been extended from June 30, 2021 to August 30, 2021. Here are the details.

What is the sales tax exemption?

The Rhode Island General Assembly passed a law in 2017 that provides for certificates of exemption under R.I. Gen. Laws§ 44-18-30(5)(i), for charitable, educational, and religious organizations, to be valid for four ( 4) years from the date of issuance. The law further provides that all certificates of exemption issued prior to July 1, 2017, the effective date of the law, expire four (4) years from July 1, 2017. This has now been extended by 60 days.

When is the application due?

As a result of the above changes, the sales and use certificate of exemptions issued prior to July 1, 2017, were originally set to expire on June 30, 2021. On Tuesday, June 29, 2021, RI Governor Daniel McKee announced that the deadline has been extended by 60 days. Applications must now be submitted on or before August 30, 2021 to continue to be exempt from sales and use tax.

The application fee for an exemption certificate remains at twenty-five dollars ($25) and can now be completed online.

Can my organization apply for Sales and Use Tax Exemption?

An organization can apply for Sales and Use Tax Exemption if they are one of these types of organizations:

  • Hospital not operated for a profit
  • Educational institution empowered to confer diplomas, educational, literary or academic degreeRIGL 44-18-30(s)
  • Church
  • Orphanage
  • Other institution or organization operated exclusively for religious or charitable purposes - 501(c)(3) determination is required
  • Interest-free loan associations not operated for profit
  • Non-profit organized sporting leagues and associations and bands exclusively for boys and girls under the age of nineteen
  • Parent-teacher associations
  • State chapter of the following national vocational student organizations: DECA; FBLA/PBL; FFA; FHA/HERD; VICA
  • Organized nonprofit Golden Age and Senior Citizens Clubs exclusively for men and women 62 years of age or older, and/or persons who are under 62 years of age who are disabled and who reside in subsidized housing

The application to apply for a new Sales and Use Tax Exemption is also online and also requires a $25 fee.

If you need assistance with the application or determining if your organization can apply for sales and use tax exemption, contact one of our team members.

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