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    dig2030's Avatar
    dig2030 Posts: 4, Reputation: 1
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    #1

    Jan 13, 2011, 08:16 PM
    I make, sell, and donate proceeds to hospice should I pay sales tax?
    I make bracelets, "sell" them to people all over the country, and donate the proceeds to Home and Hospice of RI. Should I be collecting and paying a sales tax?? I've donated approx. $2000 dollars.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Jan 14, 2011, 09:27 AM
    That depends on the sales tax laws of Rhode Island (assuming that you do in fact live in Rhode Island).

    Up to about two years ago, most states did not bother to enforce their sales tax assessments on Intyernet sales, due principally to an Congressional resolution that exempted the Internet from sales taxes.

    That resolution expired and was never renewed, and the states have become more aggressive in collecting the sales tax revenue on Internet purchases.

    Generally speaking, if Rhode Island requires you collect sales taxes on Internet sales, they WILL require you collect them even if you donate the proceeds to charity.
    dig2030's Avatar
    dig2030 Posts: 4, Reputation: 1
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    #3

    Jan 18, 2011, 07:21 AM

    I don't know how to comment!
    Thanks Atlanta tax expert.

    Can I ask, what should I do-call RI tax office? Do I have to register or something??
    Thanks again
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #4

    Jan 19, 2011, 09:36 PM
    Call the Rhode Island tax department, and ask for sales tax. They will tell you all you need to know.
    dig2030's Avatar
    dig2030 Posts: 4, Reputation: 1
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    #5

    Jan 21, 2011, 06:59 AM

    I guess posting an answer is commenting... wasn't sure if I was missing the "comment" box.

    Anyway-good to know. I will do that I guess. Is sales tax different then use tax? Is use tax for internet purchases??
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #6

    Jan 21, 2011, 07:56 AM
    Some states HAVE been using the USE tax to tax Internet transactions, so it would not surprise me if RI did the same.
    dig2030's Avatar
    dig2030 Posts: 4, Reputation: 1
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    #7

    Jan 31, 2011, 07:00 AM

    Thanks!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #8

    Jan 31, 2011, 04:36 PM
    Glad to help!
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