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Sales Tax Regulations

State of Rhode Island - Division of Taxation

Sales and Use Tax

Regulation SU 91-37 (Repealed Effective July 29, 1993)

 

Sale of Boats to Bona Fide Nonresidents

The sales tax law provides for an exemption for the sale of a boat or vessel to a bona fide nonresident of Rhode Island who shall not register such boat or vessel in Rhode Island, or document said boat or vessel with the United States Government at a home port within Rhode Island; provided that such nonresident shall transport the same outside Rhode Island within thirty (30) days after delivery by the seller for use thereafter solely outside Rhode Island. The term boat shall include any motor or engine sold together with and for that boat as a package.

Form T-338 NR (Boat Dealer Sales and Use Tax Exemption Report), must be completed IN FULL by the retailer for every sale made to a bona fide nonresident claiming exemption. Both the purchaser and the seller must sign and date the form. The third and fourth copy of the form must be forwarded to the Field Audit Section of the Division of Taxation by the retailer.

Boats purchased by nonresidents and removed from this state under the thirty (30) day removal provision may be brought back into this state without imposition of a use tax when brought into this state no earlier than the first day of October in any year and removed from this state no later than the 30th day of April next succeeding with respect to the use of any boat or vessel within this state exclusively for the following purposes:

1. delivery of such vessel to a facility in this state for storage, including dry storage and storage in water by means of operations preventing ice damage to the hull, maintenance or repair;
2. the actual process of storage, maintenance or repair of such boat or vessel;
3. storage for the purpose of selling said boat or vessel.

R. GARY CLARK
TAX ADMINISTRATOR

DATE: January 1, 1994

THIS REGULATION IS REPEALED AS OF JULY 19, 1993 TO COINCIDE WITH THE EFFECTIVE DATE OF THE REPEAL OF THE SALES/USE TAX ON BOATS.