AN ACT RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND COMPUTATION (Creates a sales tax holiday on August 8 and 9, 2026.)

H8199

2026 -- H 8199
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LC003350
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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 Solomon, J. Brien, and Casey

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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44-18-18.2. Annual Sales Tax Holiday.
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(a) Notwithstanding any general or public law to the contrary, for the days of August 8,
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2026 and August 9, 2026, sales tax shall not be imposed upon nonbusiness sales at retail of tangible
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personal property. For purposes of this section, tangible personal property shall not include
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telecommunications, tobacco products, gas, steam, oil, electricity, motor vehicles, motorboats,
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meals or a single item whose price exceeds two thousand five hundred dollars ($2,500).
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(b) Notwithstanding any general or public law to the contrary, for the days of August 8,
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2026 and August 9, 2026, a vendor shall not add to the sales price, or collect from a nonbusiness
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purchaser, an excise upon sales at retail of tangible personal property. The director of the
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department of revenue ("the director") shall not require a vendor to collect and pay taxes upon sales
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at retail of tangible personal property purchased on August 8, 2026 and August 9, 2026. An excise
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erroneously or improperly collected during the days of August 8, 2026 and August 9, 2026, shall
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be remitted to the department of revenue.
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This section shall not apply to the sale of telecommunications, tobacco products, gas,
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steam, oil, electricity, motor vehicles, motorboats, meals or a single item the price of which is in
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excess of two thousand five hundred dollars ($2,500).

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(c) Reporting requirements imposed upon vendors of tangible personal property, by law or
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by regulation, including, but not limited to, the requirements for filing returns required pursuant to
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the general laws, shall remain in effect for sales for the days of August 8, 2026 and August 9, 2026.
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(d) On or before December 31, 2026, the director of the department of revenue shall certify
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to the comptroller the amount of sales tax forgone, as well as new revenue raised from personal
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and corporate income taxes and other sources pursuant to this section. The director shall file a report
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with the house and senate finance committees detailing the distribution of revenues which would
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have been deposited in each fund without this section.
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(e) The director shall issue instructions or forms, or promulgate rules or regulations, as
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necessary for the implementation of this section.
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(f) Eligible sales at retail of tangible personal property under subsections (a) and (b) of this
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section are restricted to those transactions occurring on August 8, 2026 and August 9, 2026.
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Transfer of possession of or payment in full for the property shall occur on one of those days, and
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prior sales or layaway sales shall be ineligible.
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SECTION 2. This act shall take effect upon passage.
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LC003350
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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 create a sales tax holiday for the days of August 8, 2026 and August 9,
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2026, and no sales taxes would be collected on nonbusiness sales of tangible personal property,
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with the exception of sales of telecommunications, tobacco products, gas, steam, oil, electricity,
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motor vehicles, motorboats, meals or a single item whose price exceeds two thousand five hundred
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dollars ($2,500).
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This act would take effect upon passage.
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LC003350
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LC003350 - Page 3 of 3