Bill > S2028

This bill, effective July 1, 2026, imposes a new sales tax on digital advertising services in Rhode Island, with the tax rate varying based on the global revenue of the company selling the advertising. Specifically, companies with global revenues between $100 million and $1 billion will pay a 2.5% tax, those between $1 billion and $5 billion will pay 5%, and those between $5 billion and $15 billion will pay 7.5%. The collected tax revenue will be distributed among various state programs, including public transit, climate resiliency, housing development, the universal lunch program, and municipal resiliency plans, with a portion also going to the general fund. While companies cannot charge customers separate fees explicitly labeled as the digital advertising tax, they are permitted to disclose the tax amount on invoices. The bill amends Chapter 44-18 of the General Laws, which deals with sales and use taxes, and the new tax will be administered and collected by the division of taxation.

Budget and Finance

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