Tax & Accounting Blog

Rhode Island House Committee Passes Digital Goods Bill

Indirect Tax, ONESOURCE, Sales and Use Tax July 1, 2011

The Rhode Island House Finance Committee substituted and advanced a digital goods bill on June 17th that would tax items such as e-books and Netflix movies.  It proposes to expand the state sales tax to include digital downloads.  The bill is said to have support in the Senate.

HB 5894A would expand the 7% sales tax to songs, movies, pictures, video, ring tones, software or anything else digitally transferred or downloaded.  If enacted, the bill would take effect October 1, 2011.

Connecticut already levies a one-percent tax on digital downloads.

A copy of the bill can be found here: HB 5894A