Over-the-Counter Drugs Taxed Today

You will pay sales tax on over-the-counter drugs starting today, Oct. 1.

That’s not all. Computer software downloads, including smart phone apps, and certain package tours and scenic and sightseeing transportation services will now be taxed.

The list above is only a summary, according to the RI Division of Taxation. To find out exactly how the law will apply, read the regulation on the tax on over-the counter drugs, the regulation on computer software downloads and smartphone apps, and the regulation on certain package tours and scenic and sightseeing transportation.

The Tax Division has also posted a special notice to sales tax return filers about the changes, a regulation showing the sales tax impact on certain motor vehicle trade-ins, and a summary of legislative changes.

Retailers or others who must begin collecting and remitting Rhode Island sales tax because of the changes need to complete and file the state’s business application and registration form to obtain a sales tax permit.

If you have qustions about the changes, call the Tax Division at (401) 574-8955.