Rhode Island H8198 imposes a sales tax on digital advertising services.

Rhode Island H8198 introduces a sales tax on digital advertising services. The tax is levied on purchasers of digital advertising services and is to be paid by the retailer. The tax rate varies based on the global revenue of the person deriving revenue from digital advertising, ranging from 2.5% to 7.5%. The revenue collected is distributed to various funds, including the Rhode Island public transit authority, the statewide climate resiliency fund, and the housing development fund. The tax is set to take effect on July 1, 2026.

Rhode Island H8198 imposes a sales tax on digital advertising services.

Rhode Island H8198 introduces a sales tax on digital advertising services. The tax is levied on purchasers of digital advertising services and is to be paid by the retailer. The tax rate varies based on the global revenue of the person deriving revenue from digital advertising, ranging from 2.5% to 7.5%. The revenue collected is distributed to various funds, including the Rhode Island public transit authority, the statewide climate resiliency fund, and the housing development fund. The tax is set to take effect on July 1, 2026.