Has your not-for-profit organization received correspondence from the State of Rhode Island Department of Revenue concerning your sales and use tax exemption? If so, you may be wondering what this was for, and if further action is required.
In 2017, the Rhode Island General Assembly passed a law that includes a provision in which sales and use tax exemptions for charitable, educational, and religious organizations will expire four years after the date of issuance. Under this law, all certificates of exemption issued before July 1, 2017 will expire on June 30, 2021. Previously, Rhode Island sales and use tax exemption certificates did not expire. As such, organizations with exemption certificates issued prior to July 1, 2017 must reapply for their certification.
If you discarded the original notice from the state, do not fret. At present time, the reapplication form is not yet available on the state’s website. To be notified when the form becomes available, the state is asking organizations to complete a survey with their contact information, which can be found at https://www.surveymonkey.com/r/BLCGGPW. By completing this survey, you will be added to a notification list. Once the form does become available, there will be a $25 application fee.
Citrin Cooperman has a dedicated team of Not-For-Profit Practice professionals available to assist you. If you have any questions, please reach out to your Citrin Cooperman advisor.