Bill Sponsors
Representative Arthur J. Corvese
Committee
House Municipal Government & Housing
Summary
Select
This legislation updates the sales tax exemption rules for writers, composers, and artists in Rhode Island. Specifically, it refines the definition of a "book or other writing" eligible for tax-free status. To qualify, a book must be a limited production with sales of 1,500 copies or fewer. However, the bill explicitly states that sales made through third-party electronic platforms, bookstores, gift shops, and other retail outlets are not exempt from sales tax. Additionally, the bill establishes that exemption certificates are valid for four years and requires annual reporting of sales to the tax administrator.
Sponsor
Analysis
Pros for Progressives
- Strengthens the "State of the Arts" identity by maintaining incentives for local creators, which fosters community pride and cultural enrichment.
- Ensures a fairer tax system by closing loopholes that allowed sales through major commercial retailers and third-party platforms to go untaxed, thereby protecting potential state revenue for public services.
- Empowers the Rhode Island Council on the Arts to oversee the program and gather data, promoting evidence-based policy making regarding the arts economy.
Cons for Progressives
- Removing the exemption for third-party electronic sales disproportionately hurts lower-income creators who rely on accessible platforms like Etsy or Amazon to reach their audience.
- The 1,500 copy limit creates an arbitrary ceiling that may penalize independent authors who achieve moderate success without corporate backing.
- Taxing sales at independent bookstores and gift shops adds a financial burden to small local businesses that are already struggling to compete with corporate giants.
Pros for Conservatives
- Clarifies the tax code by strictly defining "limited production," which reduces ambiguity and prevents the abuse of tax exemptions by larger commercial entities.
- Levels the playing field for other businesses by ensuring that sales through retail outlets and third-party platforms are subject to the same taxes as other commercial goods.
- Implements stronger oversight by requiring annual reporting and limiting the validity of exemption certificates to four years, ensuring accountability.
Cons for Conservatives
- Continues the practice of government picking winners and losers by carving out special tax privileges for the "arts" sector rather than applying a flat tax policy.
- Increases the regulatory burden on private individuals by requiring them to file annual reports with the government regarding their sales and creative output.
- Expands the size of government by authorizing the Arts Council to request additional personnel and resources to manage this program.
Constitutional Concerns
None Likely
Impact Overview
Groups Affected
- Writers
- Artists
- Bookstore Owners
- Gallery Owners
- Composers
Towns Affected
All
Cost to Taxpayers
Amount unknown
Revenue Generated
Amount unknown
BillBuddy Impact Ratings
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Freedom Impact
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Public Services
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Regulatory
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Clarity of Bill Language
How clear the language of the bill is. Higher ambiguity equals a lower score.
Enforcement Provisions
Measures enforcement provisions and penalties for non-compliance (if applicable).
Environmental Impact
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Privacy Impact
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Bill Status
Current Status
Held
Comm Passed
Floor Passed
Law
History
• 01/07/2026 Introduced, referred to House Municipal Government & Housing
• 01/13/2026 Committee transferred to House Finance
• 01/13/2026 Committee transferred to House Finance
Bill Text
SECTION 1. Section 44-18-30B of the General Laws in Chapter 44-18 entitled "Sales and Use Taxes — Liability and Computation" is hereby amended to read as follows:
44-18-30B. Exemption from sales tax for sales by writers, composers, artists — Findings.
(a) The general assembly makes the following findings of facts:
(1) The arts and culture are a significant asset for Rhode Island, one that generates revenue through increased tourism and economic activity; creates jobs and economic opportunities; revitalizes communities adding to quality of life and property values; and fosters creativity, innovation, and entrepreneurship.
(2) Since 1998, the establishment of arts districts, where “one-of-a-kind, limited- production” works of art may be sold exempt from state sales tax, has resulted in an increased presence for the arts in designated cities and towns, with benefits to those communities and to the state.
(3) Since the establishment of arts districts, many communities have sought legislation to expand the program to their city or town.
(4) There is value in expanding the arts district program statewide, providing incentives for the sale and purchase of art. This is a unique opportunity for Rhode Island to shape history, and gain an advantage over other states, by becoming the first-and-only state in the country to declare a statewide sales tax exemption on art. This will strengthen Rhode Island’s identity as an arts- friendly destination and “State of the Arts.”
(b)(1) This section only applies to sales by writers, composers, and artists residing in and conducting a business within the state of Rhode Island. For the purposes of this section, a “work” means an original and creative work, whether written, composed, or executed for “one-of-a-kind, limited production” that falls into one of the following categories:
(i) A book or other writing;
(ii) A play or the performance of said play;
(iii) A musical composition or the performance of said composition;
(iv) A painting, print, photograph, or other like picture;
(v) A sculpture;
(vi) Traditional and fine crafts;
(vii) The creation of a film or the acting within the film; or
(viii) The creation of a dance or the performance of the dance.
(2) For the purposes of this section, a “work” includes any product generated as a result of any of the above categories.
(3) For the purposes of this section, a “work” does not apply to any piece or performance created or executed for industry-oriented, commercial, or related production.
(4) For the purposes of this section, a “book or other writing” means a one-of-a-kind limited production, up to the sale of one thousand five hundred (1,500) copies, regardless of the methods by which it is published or sold; provided, however, that any third-party electronic sales, and sales from bookstores, gift shops and other retail outlets, shall not be exempt from the sales tax.
(c)(1) This section applies to sales by any individual:
(i) Who is a resident of, and has a principal place of business situated in, the state of Rhode Island.
(ii) Who is determined by the tax administrator in consultation with the Rhode Island council on the arts, after consideration of any evidence he or she deems necessary or that is submitted to him or her by the individual, to have written, composed, or executed, either solely or jointly, a work or works that would fall into one of the categories listed in subsection (b)(1).
(2) This section also applies to sales by any other gallery located in the state of Rhode Island.
(3) The tax administrator shall not make a determination unless:
(i) The individual(s) concerned duly make(s) an application to the tax administrator for the sales tax exemption that applies to the works defined in this section; and LC003561 - Page 2 of 5
(ii) The individual has complied and continues to comply with any and all requests made by the tax administrator.
(d) Any individual to whom this section applies, and who makes an application to the tax administrator, is entitled to a sales tax exemption for the sale of a work or works sold from the individual’s business located in the State of Rhode Island that would, apart from this section, be subject to the tax rate imposed by the state of Rhode Island.
(e) When an individual makes a request for the exemption, the tax administrator is entitled to all books, documents, or other evidence relating to the publication, production, or creation of the works that may be deemed necessary by the tax administrator for the purposes of the exemption. The time period in which to provide this information is in the sole discretion of the tax administrator and specified in the notice.
(f) In addition to the information required in subsection (e), the tax administrator may require the individual(s) to submit an annual, certified accounting of the numbers of works sold; the type of work sold; and the date of the sale. Failure to file this report may, in the sole discretion of the tax administrator, terminate the individual’s eligibility for the exemption.
(g) Any person storing, using, or otherwise consuming in this state any work or works deemed to be exempt from the sales tax pursuant to this section is not liable for the use tax on the work or works.
(h) Notwithstanding the provisions of this section, any individual to whom this section may apply shall comply with all the administration, collection, and other provisions of chapters 18 and 19 of this title.
(i) The certificate of exemption shall be valid for four (4) years from the date of issue. All certificates issued prior to the effective date of this section shall expire four (4) years from the effective date of this section.
(j) The Rhode Island council on the arts will oversee the transition to a statewide arts district program and work with the state tourism agencies; local chambers of commerce; and advertising/marketing agencies to promote this program, and will coordinate its efforts with the city and town governments. The Rhode Island council on the arts may request, and shall receive, from any department, division, board, bureau, commission, or agency of the state any data, assistance, and resources, including additional personnel, that will enable it to properly carry out this program.
(k) The tax administrator, in cooperation with the Rhode Island council on the arts, will gather data to assess the overall impact of the statewide arts district program, and issue an annual report including, but not limited to, the impact of the tax exemption on employment, tourism, sales, LC003561 - Page 3 of 5 and spending within the arts sector and adjacent businesses, and any other factors that describe the impact of the program.
SECTION 2. This act shall take effect upon passage.
44-18-30B. Exemption from sales tax for sales by writers, composers, artists — Findings.
(a) The general assembly makes the following findings of facts:
(1) The arts and culture are a significant asset for Rhode Island, one that generates revenue through increased tourism and economic activity; creates jobs and economic opportunities; revitalizes communities adding to quality of life and property values; and fosters creativity, innovation, and entrepreneurship.
(2) Since 1998, the establishment of arts districts, where “one-of-a-kind, limited- production” works of art may be sold exempt from state sales tax, has resulted in an increased presence for the arts in designated cities and towns, with benefits to those communities and to the state.
(3) Since the establishment of arts districts, many communities have sought legislation to expand the program to their city or town.
(4) There is value in expanding the arts district program statewide, providing incentives for the sale and purchase of art. This is a unique opportunity for Rhode Island to shape history, and gain an advantage over other states, by becoming the first-and-only state in the country to declare a statewide sales tax exemption on art. This will strengthen Rhode Island’s identity as an arts- friendly destination and “State of the Arts.”
(b)(1) This section only applies to sales by writers, composers, and artists residing in and conducting a business within the state of Rhode Island. For the purposes of this section, a “work” means an original and creative work, whether written, composed, or executed for “one-of-a-kind, limited production” that falls into one of the following categories:
(i) A book or other writing;
(ii) A play or the performance of said play;
(iii) A musical composition or the performance of said composition;
(iv) A painting, print, photograph, or other like picture;
(v) A sculpture;
(vi) Traditional and fine crafts;
(vii) The creation of a film or the acting within the film; or
(viii) The creation of a dance or the performance of the dance.
(2) For the purposes of this section, a “work” includes any product generated as a result of any of the above categories.
(3) For the purposes of this section, a “work” does not apply to any piece or performance created or executed for industry-oriented, commercial, or related production.
(4) For the purposes of this section, a “book or other writing” means a one-of-a-kind limited production, up to the sale of one thousand five hundred (1,500) copies, regardless of the methods by which it is published or sold; provided, however, that any third-party electronic sales, and sales from bookstores, gift shops and other retail outlets, shall not be exempt from the sales tax.
(c)(1) This section applies to sales by any individual:
(i) Who is a resident of, and has a principal place of business situated in, the state of Rhode Island.
(ii) Who is determined by the tax administrator in consultation with the Rhode Island council on the arts, after consideration of any evidence he or she deems necessary or that is submitted to him or her by the individual, to have written, composed, or executed, either solely or jointly, a work or works that would fall into one of the categories listed in subsection (b)(1).
(2) This section also applies to sales by any other gallery located in the state of Rhode Island.
(3) The tax administrator shall not make a determination unless:
(i) The individual(s) concerned duly make(s) an application to the tax administrator for the sales tax exemption that applies to the works defined in this section; and LC003561 - Page 2 of 5
(ii) The individual has complied and continues to comply with any and all requests made by the tax administrator.
(d) Any individual to whom this section applies, and who makes an application to the tax administrator, is entitled to a sales tax exemption for the sale of a work or works sold from the individual’s business located in the State of Rhode Island that would, apart from this section, be subject to the tax rate imposed by the state of Rhode Island.
(e) When an individual makes a request for the exemption, the tax administrator is entitled to all books, documents, or other evidence relating to the publication, production, or creation of the works that may be deemed necessary by the tax administrator for the purposes of the exemption. The time period in which to provide this information is in the sole discretion of the tax administrator and specified in the notice.
(f) In addition to the information required in subsection (e), the tax administrator may require the individual(s) to submit an annual, certified accounting of the numbers of works sold; the type of work sold; and the date of the sale. Failure to file this report may, in the sole discretion of the tax administrator, terminate the individual’s eligibility for the exemption.
(g) Any person storing, using, or otherwise consuming in this state any work or works deemed to be exempt from the sales tax pursuant to this section is not liable for the use tax on the work or works.
(h) Notwithstanding the provisions of this section, any individual to whom this section may apply shall comply with all the administration, collection, and other provisions of chapters 18 and 19 of this title.
(i) The certificate of exemption shall be valid for four (4) years from the date of issue. All certificates issued prior to the effective date of this section shall expire four (4) years from the effective date of this section.
(j) The Rhode Island council on the arts will oversee the transition to a statewide arts district program and work with the state tourism agencies; local chambers of commerce; and advertising/marketing agencies to promote this program, and will coordinate its efforts with the city and town governments. The Rhode Island council on the arts may request, and shall receive, from any department, division, board, bureau, commission, or agency of the state any data, assistance, and resources, including additional personnel, that will enable it to properly carry out this program.
(k) The tax administrator, in cooperation with the Rhode Island council on the arts, will gather data to assess the overall impact of the statewide arts district program, and issue an annual report including, but not limited to, the impact of the tax exemption on employment, tourism, sales, LC003561 - Page 3 of 5 and spending within the arts sector and adjacent businesses, and any other factors that describe the impact of the program.
SECTION 2. This act shall take effect upon passage.