Rhode Island Tax Division Modifies ENDS Tax Violation Ruling, Imposes License Suspension

The Rhode Island Division of Taxation modified a hearing officer’s decision and imposed a five-day license suspension after finding that a taxpayer violated state electronic nicotine-delivery system (ENDS) products tax laws. The Division determined that the taxpayer possessed flavored ENDS products for which no tax had been paid, in violation of Rhode Island’s prohibition on flavored ENDS sales and statutory requirements to pay tax on ENDS products held for sale. The Division upheld the seizure of the contraband products and the assessment of tax, penalties, and interest. Although the hearing officer recommended no license suspension despite the taxpayer’s prior violations ...