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US Rhode Island proposes sale tax rate cut

Package of economic support includes cut to 6.85% with more reductions to come

The Governor of Rhode Island state, Dan McKee has proposed a cut to the sales tax rate as part of a package of relief measures totalling $100 million for the 2024 fiscal year.

The rate would be cut starting this year with a reduction from 7% to 6.85% resulting in a total savings of $35 million annually. The State’s sales tax was increased during the banking crisis of the 1990s with a promise that it would be later reduced – that promise was never maintained.

Foreign sellers of goods liable to US sales tax

Since the 2018 Wayfair vs South Dakota economic nexus ruling, non-resident sellers of goods and some digital services have become liable to charging, collecting and remitting sales tax on their in-state sales. Rhode Island implemented ‘Wayfair’ in July 2019.

You can check US sales tax thresholds for the obligation to collect taxes.

US Sales Tax rates and selling thresholds

State State sales tax rate Remote seller annual thresholds Digital services taxable?
$ threshold Transactions threshold
Alabama 4.0% 1 Oct 2018 $250,000 Yes
Alaska 0% - n/a No state-wide tax
Arizona 5.6% 1 Oct 2019 $100,000 - Yes
Arkansas 6.5% 1 July 2019 $100,000 200 transactions Yes
California 6.0% 1 April 2019 $500,000 - No
Colorado 2.9% 1 Dec 2018 $100,000 - Yes
Connecticut 6.35% 1 Dec 2018 $100,000 200 transactions Yes
Delaware 0.0% - n/a No state sales tax
Florida 6.0% 1 July 2021 $100,000 - No Communications Tax. E-books exempt
Georgia 4.0% 1 Jan 2019 $100,000 200 transactions No
Hawaii 4.0% 1 July 2018 $100,000 200 transactions Yes General Excise Tax
Idaho 6.0% 1 June 2019 $100,000 Yes Software exempt
Illinois 6.25% 1 Oct 2018 $100,000 200 transactions No
Indiana 7.0% 1 Oct 2018 $100,000 - (since Jan 2024) Yes
Iowa 6.0% 1 Jan 2019 $100,000 - Yes
Kansas 6.5% 1 July 2021 $100,000 - No
Kentucky 6.0% 1 Oct 2018 $100,000 200 transactions Yes
Louisiana 4.45% 1 July 2020 $100,000 - (since Aug 2023) Yes
Maine 5.5% 1 July 2018 $100,000 - (since 2022) Yes
Maryland 6.0% 1 Oct 2018 $100,000 200 transactions Yes
Massachusetts 5.6% 1 Oct 2018 $100,000 No
Michigan 6.0% 30 Sep 2018 $100,000 200 transactions No
Minnesota 6.875% 1 Oct 2018 $100,000 200 transactions Yes
Mississippi 7.0% 1 Sep 2018 $250,000 - Yes
Missouri 4.225% 1 Jan 2023 $100,000 - No
Montana 0.0% - n/a No state sales tax
Nebraska 5.5% 1 April 2019 $100,000 200 transactions Yes
Nevada 4.6% 1 Oct 2018 $100,000 200 transactions No
New Hampshire 0.0% - n/a
New Jersey 6.625% 1 Nov 2018 $100,000 200 transactions Yes
New Mexico 5.0% 1 July 2019 $100,000 - Yes
New York 4.0% 21 July 2018 $500,000 100 transactions No
North Carolina 4.75% 1 Nov 2018 $100,000 - (since 2024) Yes
North Dakota 5.0% 1 Oct 2018 $100,000 - No
Ohio 5.75% 1 Aug 2019 $100,000 200 transactions Yes
Oklahoma 4.5% 1 Nov 2019 $100,000 - No
Oregon 0.0% - n/a No state sales tax
Pennsylvania 6.0% 1 July 2019 $100,000 Yes
Puerto Rico 10.5% 1 Jan 2021 $100,000 200 transactions Yes
Rhode Island 7.0% 1 July 2019 $100,000 200 transactions Yes
South Carolina 6.0% 1 Nov 2018 $100,000 - No
South Dakota 4.5% 1 Nov 2018 $100,000 - (since Jul 2023) Yes
Tennessee 7.0% 1 July 2019 $100,000 - Yes
Texas 6.25% 1 Oct 2019 $500,000 - Yes Only if physcial equivilaent is taxable (e.g. books)
Utah 4.7% 1 Jan 2019 $100,000 200 transactions Yes
Vermont 6.0% 1 July 2018 $100,000 200 transactions Yes
Virginia 4.3% 1 July 2019 $100,000 200 transactions Yes
Washington 6.5% 1 Oct 2018 $100,000 - Yes
Washington, DC 6.0% 1 Jan 2019 $100,000 200 transactions Yes
West Virginia 6.0% 1 Jan 2019 $100,000 200 transactions Yes Streaming services only
Wisconsin 5.0% 1 Oct 2018 $100,000 - (since 2021) Yes
Wyoming 4.0% 1 Feb 2019 $100,000 - (since 2024) Yes

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