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Sales Tax Regulations

State of Rhode Island - Division of Taxation

Sales and Use Tax

Regulation SU 99-111

 

Trucks, Trailers and Buses -- Interstate Carriers

The purchase or rental/lease of a truck, trailer or bus by a trucking or busing company that transports goods or passengers for hire is not subject to sales and use tax provided such vehicle is to be used "exclusively in interstate commerce."

In order to qualify for the exemption, the purchaser is required to furnish a completed "Affidavit of Truck, Trailer or Bus to be Used Exclusively in Interstate Commerce" to the Registry of Motor Vehicles at the time of registration. In the case of a lease, the lessee must furnish the Affidavit form to the lessor at the time of signing the lease.

An individual who purchases a truck or bus for the purpose of driving and leasing it to a trucking or busing company to be used "exclusively in interstate commerce" qualifies for the exemption. The individual must complete the Affidavit form and furnish a signed lease from the carrier company indicating who the vehicle is being leased from, their motor carrier number and/or U.S. DOT number, and the year, make and vehicle identification number.

A truck, trailer or bus used partly or wholly in intrastate operations does not qualify for the exemption.

If a vehicle qualifies for the exemption initially and at some later time is used for purposes other than "exclusively in interstate commerce," the purchaser will immediately be required to pay a sales/use tax to the Division of Taxation. In the case of a lease, the lessee will be required to notify the lessor that the exemption no longer applies so that lease billings from that point forward change from an exempt to a taxable status.

R. GARY CLARK
TAX ADMINISTRATOR

DATE: January 1, 1999

CROSS REFERENCE: REGULATION SU 90-131

THIS REGULATION AMENDS AND SUPERCEDES REGULATION SU 87-111 PROMULGATED MAY 1, 1987, REGULATION SU 91-111 PROMULGATED JANUARY 1, 1992 AND REGULATION SU 92-111 PROMULGATED JANUARY 1, 1993.