Rhode Island DOR Readopts Regulation on Sales Tax Liability of Construction Contractors, Subcontractors

The Rhode Island Department of Revenue Dec. 15 readopted a regulation concerning the sales and use tax liability of construction contractors and subcontractors. The rule includes measures: 1) defining the terms “contractor,” “construction contract,” and “nonresident contractor;" 2) specifying the taxability of sales to or by construction contractors concerning fabricated tangible personal property, modular homes, and complete units of standard equipment sold and installed at retail; 3) explaining the taxability of contracts with exempt agencies, institutions, and organizations; and 4) explaining the tax liability of nonresident contractors. The regulation takes effect Jan. 4, 2022. [R.I. Dep’t of Revenue, Reg. Section ...