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Rhode Island Introduces 7% Sales Tax on Short-term Parking Services Starting October 2025

  • Rhode Island will impose a sales tax on short-term parking services starting October 1, 2025.
  • The sales tax rate is 7 percent and applies to parking services with a duration of less than one month.
  • Examples include paid parking garages, event parking, and beach parking.
  • Businesses must list sales tax as a separate line item on receipts.
  • Businesses providing short-term parking must have a retail sales permit and file monthly sales tax returns.
  • Sales tax is a Trust Fund tax, meaning it must be collected and remitted to the state.
  • Interest on underpayments or delinquencies is 18 percent per year.
  • Notice 2025-06 provides further information on registration and filing requirements.
  • Contact the Rhode Island Division of Taxation for questions or more information.

Source: tax.ri.gov

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.



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