IPCPR Legislative | Rhode Island

Rhode Island

rhode_island

Rhode Island State Contact Information

Rhode Island Department of Revenue
Division of Taxation
(401) 574-8955
donald.englert@tax.ri.gov

Rhode Island Secretary of State
Public Information
Phone: (401) 222-3983
Fax: (401) 222-1404
publicinfo@sos.ri.gov

Taxation in Rhode Island

 

Rhode Island imposes a tax on all smokeless tobacco, cigars, and pipe tobacco products sold or held for sale in the state by any person. The tax imposed on little cigars is imposed in accordance with the cigarette tax rules cited below. Any dealer or consumer who acquires untaxed tobacco products will also be liable for the tax.

 

R.I. Gen. Laws § 44-20-13.2: Tax imposed on smokeless tobacco, cigars, and pipe tobacco products

 

R.I. Gen. Laws § 44-20.2-2: Tax imposed on little cigars sold
R.I. Gen. Laws § 44-20-41: Monthly reports of distributors and dealers
R.I. Gen. Laws § 44-20-14: Return and payment of use tax

 

Division of Taxation staff reported that Rhode Island localities do not and cannot levy additional taxes on tobacco products.

The tax on tobacco products is 80% of the wholesale cost, except that the tax on snuff is $1.00 per ounce and a proportionate tax on all fractional parts, and the tax on cigars may not exceed $0.50 per cigar.  The tax on little cigars is the same rate as the tax on cigarettes.  The payment of tax is to be evidenced by stamps, the tax is at the rate of 175 mills for each cigarette.

 

R.I. Gen. Laws § 44-20-13.2: Tax imposed on smokeless tobacco, cigars, and pipe tobacco products

 

R.I. Gen. Laws § 44-20.2-2: Tax imposed on little cigars sold

 

R.I. Gen. Laws § 44-20-12: Tax imposed on cigarettes sold

On or before the 10th day of each month, distributors must file the Distributor Tobacco Products Tax Return (Form OTP-1), along with payment for taxes due. A dealer or consumer who acquires untaxed tobacco products must file a Dealer/Consumer Other Tobacco Products Return within 5 days of coming into possession of the products, along with payment for taxes due.

 

R.I. Gen. Laws § 44-20-41: Monthly reports of distributors and dealers
R.I. Gen. Laws § 44-20-14: Return and payment of use tax

Rhode Island Division of Taxation: Tobacco Products Forms
http://www.tax.ri.gov/taxforms/sales_excise/tobacco.php

 

Form OTP-1: Distributor’s Other Tobacco Products Tax Return
http://www.tax.ri.gov/forms/2014/Excise/Tobacco/OTP-1%20032014_m.pdf

 

Form OTP-4: Dealer/Consumer Other Tobacco Products Return
http://www.tax.ri.gov/forms/2014/Excise/Tobacco/OTP-4_h.pdf

Definitions in Rhode Island

 

“Smoking” means inhaling, exhaling, burning, or carrying any lighted cigar, cigarette, pipe, weed, plant, or other combustible substance in any manner or in any form. “Smoking” does not include burning during a religious ceremony.

 

R.I. Gen. Laws § 20-20.10-2(14)

 

“Distributor” means any person:

 

  • Whether located within or outside of Rhode Island, other than a dealer, who sells or distributes tobacco products within or into the state
  • Selling tobacco products directly to consumers in Rhode Island by means of at least 25 tobacco product vending machines
  • Engaged in this state in the business of manufacturing tobacco products or any person engaged in the business of selling tobacco products to dealers, or to other persons, for the purpose of resale only; provided, that 75% of all tobacco products sold by that person in Rhode Island are sold to dealers or other persons for resale and selling tobacco products directly to at least 40 dealers or other persons for resale or
  • Maintaining one or more regular places of business in this state for that purpose; provided, that 75% of the sold cigarettes are purchased directly from the manufacturer and selling cigarettes directly to at least 40 dealers or other persons for resale

 

R.I. Gen. Laws § 44-20-1(4)

 

“Dealer” means any person, whether located within or outside of this state, who sells or distributes tobacco products to a consumer in this state.

 

R.I. Gen. Laws § 44-20-1(3)

 

“Sale” or “sell” includes and applies to gifts, exchanges, and barter.

 

R.I. Gen. Laws § 44-20-1(10)

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