Rhode Island: The Ocean State

At just over 3,000 kmĀ², Rhode Island is the smallest of all US states. The Ocean State is part of the New England region and is located on the east coast of the Atlantic Ocean. The state has only two neighboring states, Massachusetts to the north and east and Connecticut to the west. According to ehuacom, the capital Providence is the largest with almost 180,000 inhabitants. A total of over a million people live in the state.

Rhode Island’s economy is growing, average productivity has reversed its decline, and advanced sectors are expanding with positive implications for businesses across the state. Rhode Island’s burgeoning comeback is making a visible mark. For example, a new Innovation & Design District, a new co-working space in Newport, an Electric Boat’s submarine production facility in the Quonset Industrial Park or the offshore wind farm at Block Island were created.

The state has demonstrated its ability to design, fund and support a range of worthwhile projects for both businesses and workers. The Ocean State abounds with opportunities for business advancement.

Rhode Island Location Map

SMALL STATE, BIG REACH

Rhode Island’s location along Northeast Corridor I-95 means easy access to major metropolitan areas. The ideal location offers all the advantages of major business hubs, including easy access to top companies, all forms of transport and world-class universities. Boston can be reached in less than 45 minutes and New York City in less than three hours.

The Northeast is home to one-third of the Fortune 100 companies and nearly 20 percent of all national jobs are in the region. Nearby airports and shipping terminals provide easy access to Europe and other international markets. Rhode Island also offers the best broadband service in the entire United States, making it well equipped to meet the demands of today’s economy.

KEY INDUSTRIES – LIFE SCIENCES

Rhode Island is strong in biomedical innovation, advancing scientific knowledge of biological processes and systems in ways that are reshaping the diagnosis and treatment of disease. There are particularly attractive market opportunities in the areas of neuroscience therapeutics, medical devices for orthopedic, bio-sensing and neurological applications, as well as health informatics and digital innovations.

Biomedical innovations are converging with technology developments in other scientific fields, including electronics, information technology, imaging and nanoscience, providing new insights that feed into the development of biomedical products. The concentration of the health and life sciences industry in Rhode Island is 31 percent higher than the national average.

KEY INDUSTRY – IT SOFTWARE

The convergence of technologies such as wireless communications, sensing, imaging, and cyber-physical systems is creating strong and ever-evolving consumer demand. Businesses in Rhode Island are at the forefront thanks to the state’s strengths in engineering, design, data analytics, cybersecurity and computing. The collaborative environment in Rhode Island means that technological innovations are used across industries. Specific growth opportunities include cyber-physical systems and data analytics, autonomous underwater vehicles, remote medical device monitoring systems, environmental and energy monitoring, and smart grid infrastructure.

  • COUNTRYAAH: offers list of all counties in the state of Rhode Island. Also includes cities and towns within each county.

KEY INDUSTRY SHIPBUILDING AND MARITIMES

The state is home to a wide range of maritime industries, including boat building and service. A highly integrated maritime economy enhances the Ocean State’s competitive advantages. Rhode Island’s marine, materials and machinery industry concentration is 86 percent higher than the national average.

General Dynamics Electric Boat is building the next generation of submarines for the US Navy in Rhode Island. The University of Rhode Island (URI)’s most prominent research area is its world-class marine science and engineering program. Many of the world’s best talent have studied at or worked with URI. The Naval Undersea Warfare Center is a leader in underwater systems and tests unmanned vehicles in Rhode Island’s Narragansett Bay.

INCOME TAX IN RHODE ISLAND

Rhode Island charges an income tax of 3.75 – 5.99% depending on income. In addition, federal income taxes are payable.

CORPORATION TAX IN RHODE ISLAND

Rhode Island charges a 7% corporate income tax. In addition, federal corporation tax is payable.

RHODE ISLAND SALES TAX

There is no sales tax or Value Added Tax (VAT) in the USA based on the European model. Instead, in the United States, states, counties, and municipalities levy a local sales tax on the sale of products (but not services).

Sales Tax Rate in Rhode Island

The sales tax in Rhode Island is 7% at the state level. Municipalities or counties do not levy a sales tax.

Rhode Island Nexus Laws & Sales Tax

Learn more about the Economic Nexus Laws in the context of Sales Tax here.

Effective Date

July 1, 2019

Transactions included:

Gross proceeds from the sale of tangible personal property, prepackaged computer software delivered electronically or by powered load, provider hosted prepackaged computer software, specified digital products and/or taxable services delivered in the United States state

Treatment of tax-exempt transactions:

Exempted sales are included, but exempt services are not included in the threshold.

Reason:

sales or transactions

Sales/Transactions Threshold:

$100,000 or 200 transactions

Evaluation period:

The threshold applies to the previous calendar year

Extra information:

  • Registration Requirements: Rhode Island requires that a remote business register, collect and remit sales tax on January 1 of the year following the calendar year in which it crossed the Economic Nexus Threshold. Other requirements apply if the threshold was exceeded in 2018. See ADV_2019_11 formore information.
  • Remote Seller Information
  • SB 251A and HB5278A

Rhode Island Marketplace Sellers & Sales Tax

Learn more about Marketplace seller registration requirements

Effective date by the marketplace broker:

Aug 17, 2017; new requirements from July 1, 2019

Economic Nexus Threshold:

A minimum of $100,000 in gross sales or at least 200 transactions in the immediately preceding calendar year. Remote sellers should include sales made through non-collecting and collecting marketplaces when calculating the threshold. Marketplace intermediaries include all taxable sales made through the marketplace when calculating the threshold.

A notice:

Marketplace intermediaries and remote sellers who reach the Economic Nexus Threshold in Rhode Island may elect to opt out of tax reporting requirements in lieu of collecting and deducting US Sales Tax through June 30, 2019. Effective July 1, 2019, the tax reporting option for non-collectors will be removed from sellers for companies crossing the Economic Nexus Threshold.

Registration requirements:

  • Remote Multichannel Sellers: You must register with the Rhode Island Division of Taxation and collect your Rhode Island sales tax on sales not taxed by a Marketplace Agent once you have crossed the Economic Nexus Threshold.
    • You can exclude sales that were taxed by a marketplace intermediary from your tax returns.
  • Remote Marketplace Vendors: You must register once you cross the Economic Nexus Threshold Division. Contact the Rhode Island Division of Taxation for more information.
    • You can exclude sales that were taxed by a marketplace intermediary from your tax returns.
  • In-State Multichannel Sellers: You must register with the Rhode Island Division of Taxation and collect tax on sales that are not taxed by a marketplace intermediary.
    • You can exclude sales that were taxed by a marketplace intermediary from your tax returns.
  • State Marketplace Sellers: You must register. Contact the Rhode Island Division of Taxation for more information.