280-RICR-20-70-6
A. “Clothing" means all human wearing apparel suitable for general use.
B. "Clothing accessories or equipment" means incidental items worn on the person or in conjunction with "clothing." "Clothing accessories or equipment" does not include: "clothing," "sport or recreational equipment," or "protective equipment."
D. "Protective equipment" means items for human wear and designed as protection of the wearer against injury or disease or as protections against damage or injury of other persons or property but not suitable for general use. "Protective equipment" does not include "clothing," "clothing accessories or equipment," and "sport or recreational equipment."
E. “Sales price” means:
1. The total amount of consideration, including cash, credit, property, and services, for which personal property or services are sold, leased, or rented, valued in money, whether received in money or otherwise, without any deduction for the following:
2. “Sales price” shall not include:
3. "Sales price" shall include consideration received by the seller from third parties if:
d. One of the following criteria is met:
F. "Sport or recreational equipment" means items designed for human use and worn in conjunction with an athletic or recreational activity that are not suitable for general use. "Sport or recreational equipment" does not include "clothing," "clothing accessories or equipment," and "protective equipment."
B. Effective October 1, 2012, the exemption from Rhode Island sales and use tax will apply to the sales, leases or rentals in this state of essential clothing, including footwear, intended to be worn or carried on or about the human body with a sales price of two-hundred fifty dollars ($250.00) or less per item.
C. Effective October 1, 2012, the portion of the sales price of clothing, including footwear, sold, leased or rented in this state greater than two-hundred fifty dollars ($250.00) per item is subject to the Rhode Island sales and use tax.
1. Example 1: A retailer of clothing sells a suit with a sales price of two-hundred seventy-five dollars ($275.00). The tax in this example is computed as follows:
| Suit | $275.00 |
| Sales Tax: ($275.00 - 250.00) x 7% | $1.75 |
| Total Invoice | $276.75 |
2. Example 2: A retailer of clothing sells a suit with a sales price of two-hundred twenty-five dollars ($225.00). Alterations are made to the suit to adjust the length of the sleeves and pants resulting an additional charge of sixty dollars ($60.00) bringing the total sales price to two hundred eighty-five dollars ($285.00). The tax in this example is computed as follows:
| Suit | $225.00 |
| Alterations | $60.00 |
| Subtotal | $285.00 |
| Sales Tax: Suit and Alterations ($285.00 - 250.00) x 7% | $2.45 |
| Total Invoice | $287.45 |
3. Example 3: Same facts as Example 2, and the retailer also charges twenty dollars (20.00) for delivery of the suit to the customer bringing the total sales price to three-hundred five dollars ($305.00). The tax in this example is computed as follows:
| Suit | $225.00 |
| Alterations | $60.00 |
| Delivery Charge | $20.00 |
| Subtotal | $305.00 |
| Sales Tax: Suit, alterations & delivery ($305.00 – 250.00) x 7% | $3.85 |
| Total Invoice | $308.85 |
4. Example 4: A retailer of clothing sells two suits; one suit with a sales price of five-hundred dollars ($500.00) and a second suit with a sales price of two-hundred fifty dollars ($250.00) and the retailer also charges seventy-five dollars ($75.00) for delivery of the suits to the customer bringing the total sales price to eight-hundred twenty-five dollars ($825.00). The tax in this example is computed as follows:
| Item 1 | Item 2 | Total | |
| Suit | $500.00 | $250.00 | $750.00 |
| Delivery | $50.00 | $25.00 | $75.00** |
| Subtotal | $550.00 | $275.00 | $825.00 |
| Less Threshold | (250.00) | (250.00) | (500.00) |
| Taxable Amount | $300.00 | $25.00 | $325.00 |
| Rate | x .07 | x .07 | x .07 |
| Tax | $21.00 | $1.75 | $22.75 |
5. Example 5: A customer purchases a suit with a sales price of three-hundred dollars ($300.00) and two (2) shirts with a sales price of fifty dollars ($50.00) each, and the retailer also charges twenty dollars ($20.00) for delivery of the merchandise to the customer bringing the total sales price to four-hundred twenty dollars ($420.00). The tax in this example is computed as follows:
| Item 1 | Item 2 | Item 3 | Total | |
| Suit | $300.00 | $300.00 | ||
| Shirts @ | $50 each | $50.00 | $50.00 | $100.00 |
| Delivery Charge | $15.00 | $2.50 | $2.50 | $20.00** |
| Subtotal | $315.00 | $52.50 | $52.50 | $420.00 |
| Less Threshold | (250.00) | (250.00) | (250.00) | |
| Taxable Amount | $65.00 | $0.00 | $0.00 | |
| Rate | x .07 | x .07 | x .07 | |
| Tax | $4.55 | $0.00 | $0.00 | $4.55 |
| ** Delivery Charge: If a shipment includes both taxable and exempt property, the seller should allocate the delivery charges by using a percentage based on the total sales prices of the taxable property compared to the total sales prices of all property in the shipment |
D. Articles of clothing that are normally sold as a single unit must continue to be sold in that manner; they cannot be separated and sold as individual items to qualify for the exemption.