State of Rhode Island - Division of Taxation
Sales and Use Tax
Regulation SU 87-121 (Repealed Effective July 29, 1993)
Section 46-22-2 (b) states that a motorboat means any vessel propelled by machinery, whether or not such machinery is the principal source of propulsion.
Sections 46-22-3 and 46-22-4 provides for the registration of motorboats.
The sales and use tax law provides that any sales or use tax must be paid as a prerequisite to the registration of any article or commodity which is required to be registered.
Since a motor is an integral part of a motorboat, without which a water craft is not considered to be a motorboat, it is therefore ruled that any person who purchases a new motor for his motorboat and then seeks to register such boat must furnish evidence that the sales or use tax on such motor has been paid.
There is a basic requirement in our law that the sales of such motor or its use, storage or other consumption is taxable under our law.
Therefore, this ruling expedites the collection of the tax on such motor, while at the same time, the payment thereof as a condition precedent to the registration of the motorboat containing such motor, is in conformity with the provisions of law heretofore cited.
The fact that such person had previously paid the sales or use tax on the motorboat when he/she first registered it makes no difference, as the tax to be collected when he/she again registers such boat containing the new motor is to be measured only by the sales price of the new motor.
R. GARY CLARK
DATE: January 1, 1994
THIS REGULATION IS REPEALED AS OF JULY 29, 1993 TO COINCIDE WITH THE EFFECTIVE DATE OF THE REPEAL OF THE SALES/USE TAX ON BOATS.