By Elizabeth Manchester and Madeline Ursini
Rhode Island nonprofits holding sales tax exemption certificates are reminded to file their renewal applications before the upcoming deadlines to maintain their tax-exempt status and comply with updated requirements. Sales tax exemption certificates issued by the Rhode Island Division of Taxation are valid for a period of four years from the date of issuance. To maintain tax-exempt status, nonprofits must file timely renewal applications before their certificates expire.
While the Division of Taxation previously sent reminder notices to nonprofits with certificates issued before 2017, it no longer provides renewal reminders. This places the onus on nonprofits to actively track their certificate expiration dates and ensure timely renewal filings to avoid lapses in exemption status and potential tax liabilities.
In addition, effective January 1, 2025, Rhode Island has eliminated the $25 application and renewal fee for sales tax exemption certificates. While this fee removal reduces the financial burden on nonprofits, it does not alter the underlying renewal and application requirements. Nonprofits must continue to comply with all filing procedures to maintain their exemption.
PSH strongly advises all Rhode Island nonprofits to verify the current status and expiration date of their sales tax exemption certificates without delay and to submit renewal applications promptly to prevent any interruption in their sales tax exemption. Engage PSH attorneys Elizabeth Manchester or Madeline Ursini to ensure you’re in compliance.
