AN ACT RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND COMPUTATION (Imposes a sales tax on digital advertising services.)

H8198

2026 -- H 8198
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LC003713
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND
COMPUTATION

Introduced By:
Representatives Cortvriend, Tanzi, Kazarian, Boylan, Cruz, and Kislak

Date Introduced:
February 27, 2026

Referred To:
House Finance
It is enacted by the General Assembly as follows:
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SECTION 1. Chapter 44-18 of the General Laws entitled "Sales and Use Taxes — Liability
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and Computation" is hereby amended by adding thereto the following section:
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44-18-36.2. Digital advertising services tax.

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(a) There is hereby levied and imposed, upon every purchaser of digital advertising
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services, in addition to all other taxes and fees now imposed by law, a local digital advertising
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services tax upon each and every digital advertisement sold within the state of Rhode Island at a
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rate of:
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(i) Two and one-half percent (2.5%) of the assessable base for a person with global
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revenues of one hundred million dollars ($100,000,000) through one billion dollars
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($1,000,000,000);
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(ii) Five percent (5.0%) of the assessable base for a person with global revenues of one
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billion dollars ($1,000,000,000) through five billion dollars ($5,000,000,000); and
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(iii) Seven and one-half percent (7.5%) of the assessable base for a person with global
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revenues of five billion dollars ($5,000,000,000) through fifteen billion dollars ($15,000,000,000).
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(b) The tax shall be paid to the tax administrator by the retailer at the time and in the manner
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provided, pursuant to rules and regulations promulgated by the tax administration pursuant to § 44-
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1-4.
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(c) All sums received by the division of taxation under this section as taxes, penalties, or

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forfeitures, interest, costs of suit, and fines shall be distributed at least annually and credited and
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paid by the state treasurer as follows:
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(i) Ten percent (10%) to the Rhode Island public transit authority (RIPTA) general
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operating budget;
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(ii) Fifteen percent (15%) statewide climate resiliency fund;
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(iii) Five percent (5%) to the university of Rhode Island resiliency toolkit;
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(iv) Twenty percent (20%) to the housing development fund through the department of
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housing;
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(v) Ten percent (10%) to the universal lunch program statewide;
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(vi) Twenty percent (20%) to the municipal resiliency plans fund; and
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(vii) Twenty percent (20%) to the general fund.
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(d) A person who derives gross revenue from digital advertising in this state, shall not
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charge customers additional fees or surcharges specifically identified as the digital advertising tax;
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however, nothing in this section prohibits providing a separate statement or disclosure of the tax
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amount in invoices or communications to customers.
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(e) This local digital advertising services tax shall be administered and collected by the
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division of taxation, and unless provided to the contrary in this chapter, all of the administration,
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collection, and other provisions of chapters 18 and 19 of this title apply.
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SECTION 2. This act shall take effect on July 1, 2026
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND
COMPUTATION
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This act would impose a sales tax on digital advertising services.
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This act would take effect on July 1, 2026
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LC003713
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