R.I. Gen. Laws
Rhode Island General Laws

R.I. Gen. Laws § 44-18-20 (2026)

Use tax imposed

✓ current as of July 2026
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(a) An excise tax is imposed on the storage, use, or other consumption in this state of tangible personal property; prewritten computer software delivered electronically or by load and leave; vendor-hosted prewritten computer software; specified digital products; or services as defined in § 44-18-7.3, including a motor vehicle, a boat, an airplane, or a trailer, purchased from any retailer at the rate of six percent (6%) of the sale price of the property.

(b) An excise tax is imposed on the storage, use, or other consumption in this state of a motor vehicle, a boat, an airplane, or a trailer purchased from other than a licensed motor vehicle dealer or other than a retailer of boats, airplanes, or trailers respectively, at the rate of six percent (6%) of the sale price of the motor vehicle, boat, airplane, or trailer.

(c) The word “trailer,” as used in this section and in § 44-18-21, means and includes those defined in § 31-1-5(a) — (f) and also includes boat trailers, camping trailers, house trailers, and mobile homes.

(d) Notwithstanding the provisions contained in this section and in § 44-18-21 relating to the imposition of a use tax and liability for this tax on certain casual sales, no tax is payable in any casual sale:

(1) When the transferee or purchaser is the spouse, mother, father, brother, sister, or child of the transferor or seller;

(2) When the transfer or sale is made in connection with the organization, reorganization, dissolution, or partial liquidation of a business entity, provided:

(i) The last taxable sale, transfer, or use of the article being transferred or sold was subjected to a tax imposed by this chapter;

(ii) The transferee is the business entity referred to or is a stockholder, owner, member, or partner; and

(iii) Any gain or loss to the transferor is not recognized for income tax purposes under the provisions of the federal income tax law and treasury regulations and rulings issued thereunder;

(3) When the sale or transfer is of a trailer, other than a camping trailer, of the type ordinarily used for residential purposes and commonly known as a house trailer or as a mobile home; or

(4) When the transferee or purchaser is exempt under the provisions of § 44-18-30 or other general law of this state or special act of the general assembly of this state.

(e) The term “casual” means a sale made by a person other than a retailer, provided, that in the case of a sale of a motor vehicle, the term means a sale made by a person other than a licensed motor vehicle dealer or an auctioneer at an auction sale. In no case is the tax imposed under the provisions of subsections (a) and (b) of this section on the storage, use, or other consumption in this state of a used motor vehicle less than the product obtained by multiplying the amount of the retail dollar value at the time of purchase of the motor vehicle by the applicable tax rate; provided, that where the amount of the sale price exceeds the amount of the retail dollar value, the tax is based on the sale price. The tax administrator shall use as his or her guide the retail dollar value as shown in the current issue of any nationally recognized, used-vehicle guide for appraisal purposes in this state. On request within thirty (30) days by the taxpayer after payment of the tax, if the tax administrator determines that the retail dollar value as stated in this subsection is inequitable or unreasonable, he or she shall, after affording the taxpayer reasonable opportunity to be heard, re-determine the tax.

(f) Every person making more than five (5) retail sales of tangible personal property or prewritten computer software delivered electronically or by load and leave, or vendor-hosted prewritten computer software, or specified digital products, or services as defined in § 44-18-7.3 during any twelve-month (12) period, including sales made in the capacity of assignee for the benefit of creditors or receiver or trustee in bankruptcy, is considered a retailer within the provisions of this chapter.

(g)(1) “Casual sale” includes a sale of tangible personal property not held or used by a seller in the course of activities for which the seller is required to hold a seller’s permit or permits or would be required to hold a seller’s permit or permits if the activities were conducted in this state, provided that the sale is not one of a series of sales sufficient in number, scope, and character (more than five (5) in any twelve-month (12) period) to constitute an activity for which the seller is required to hold a seller’s permit or would be required to hold a seller’s permit if the activity were conducted in this state.

(2) Casual sales also include sales made at bazaars, fairs, picnics, or similar events by nonprofit organizations, that are organized for charitable, educational, civic, religious, social, recreational, fraternal, or literary purposes during two (2) events not to exceed a total of six (6) days duration each calendar year. Each event requires the issuance of a permit by the division of taxation. Where sales are made at events by a vendor that holds a sales tax permit and is not a nonprofit organization, the sales are in the regular course of business and are not exempt as casual sales.

(h) The use tax imposed under this section for the period commencing July 1, 1990, is at the rate of seven percent (7%).

Notes of Decisions
Cited in 14 cases, 1973–2010 · leading case: Mart Realty, Inc. v. Norberg, 303 A.2d 361 (R.I. 1973).
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Mart Realty, Inc. v. Norberg, 303 A.2d 361 (R.I. 1973). · cites it 9× “On the basis of certain findings of fact made by him, he held that the excise tax imposed by §'§44-18-20 and 44-18-21 2 is a tax imposed on the use, storage or other consumption, and that in this case it was not imposed on storage or use, but on consumption.”
Hasbro Indus., Inc. v. Norberg, 487 A.2d 124 (R.I. 1985). · cites it 3× “1956 (1980 Reenactment) § 44-18-20. Section 44-18-16 defines “tangible personal property” as “property which may be seen, weighed, measured, felt, or touched, or which is in any other manner perceptible to the senses.”
Dart Indus., Inc. v. Clark, 696 A.2d 306 (R.I. 1997). · cites it 4× “The use tax, in contradistinction, is imposed on “the storage, use, or other consumption in this state of tangible personal property.”
Sportfisherman Charter, Inc. v. Norberg, 340 A.2d 143 (R.I. 1975). · cites it 8× “[6] He is therefore liable for a use tax at the rate of 5 percent of the sales price of the boat tinder § 44-18-20. [7] Finally, the taxpayer argues that the administrator is without the power to increase the amount of his determination once the taxpayer has requested an…”
WMS Gaming, Inc. v. Sullivan, 6 A.3d 1104 (R.I. 2010). · cites it 2× “” G.L.1956 § 44-18-20(a). The use tax applies *1108 "to purchases which occur out of state but which are in effect ‘substitutes' for purchases in this state in the sense that in both cases the property is used in this state.”
Statewide Multiple Listing Serv., Inc. v. Norberg, 392 A.2d 371 (R.I. 1978). “This is a case of first impression in Rhode Island. We are aware that nearly all transactions of this nature are of necessity a mixture of sales and service.”
Prospecting Unlimited, Inc. v. Norberg, 376 A.2d 702 (R.I. 1977). “1956 (1970 Reenactment) §44-18-20, as amended by P.L. 1967, eh. 179, art.”
Great Lakes Dredge & Dock Co. v. Norberg, 369 A.2d 1101 (R.I. 1977). “A use tax is imposed by §44-18-20 on the “storage, use, or other consumption in this state of tangible personal property * * * purchased from any retailer” at the rate of 5 percent of the purchase price.”
Capitol Bldg. Co. v. Langton, 221 A.2d 99 (R.I. 1981). “The authority of the administrator to assess a use tax derives from the provisions of §44-18-20, as amended, which reads in part: “An excise tax is hereby imposed on the storage, use, or other consumption in this state of tangible personal property * * * purchased from any…”
G. H. Waterman & Co. v. Norberg, 412 A.2d 1132 (R.I. 1980). “General Laws 1956 (1970 Reenactment) § 44-18-20 as amended by P.L.1977, ch. 200, art.”
B.G. Bailey Constr. Co. v. Norberg, 524 A.2d 595 (R.I. 1987). · cites it 2× “” General Laws 1956 (1980 Reenactment) § 44-18-21 imposes the use tax described in § 44-18-20 on “[ejvery person storing, using, or otherwise consuming in this state tangible personal property * * * purchased from a retailer * * *.”
Safeway Sys., Inc. v. Norberg, 341 A.2d 47 (R.I. 1975). “General Laws 1956 (1970 Re *130 enactment) §44-18-20, as amended, imposes an excise tax on the “storage, use, or other consumption in this state of tangible personal property.”
Show all 14 citing cases →
R.I. Gen. Laws § 44-18-20(a): 1 case
WMS Gaming, Inc. v. Sullivan, 6 A.3d 1104 (R.I. 2010). “” G.L.1956 § 44-18-20(a). The use tax applies *1108 "to purchases which occur out of state but which are in effect ‘substitutes' for purchases in this state in the sense that in both cases the property is used in this state.”
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