Businesses Now Exempt from RI Sales Taxes on Electricity, Gas and Heating FuelsJuly 02, 2015
The sale of electricity, gas and heating fuel are now exempt from the seven percent (7%) sales and use tax in Rhode Island.
Effective July 1, 2015, the sale of electricity, gas and heating fuel are now exempt from the seven percent (7%) sales and use tax. Rhode Island General Law 44-18-30 was amended to expand the exemption for any type of use.
Under prior law, the exemption applied only to electricity, gas and heating fuel furnished for domestic use on residential premises or used in the manufacturing & processing of goods for resale. Under the new law, the sales and use tax exemption applies to every type of use, regardless of whether residential or business.
As of July 1, 2015, suppliers of electricity, gas and heating fuel will no longer be charging RI sales tax.
Note: if you a manufacturing company and previously furnished a manufacturing exemption to your supplier(s), you will no longer be required to report and pay “use tax” on the percentage considered non-production use.
Should you have any questions, please contact us.