Section 280-RICR-20-45-2.2 - Responsibility of Hard-to-Dispose Material WholesalerA. Collection of Tax. Every hard-to-dispose material wholesaler, whether located in Rhode Island or not, is required to charge and collect a tax upon the sale of hard-to-dispose materials to retailers who are engaged in the retail sale of hard-to-dispose material in this state. The tax shall be determined in accordance with the rates specified in the table below. 1. Table Hard to Dispose Material | Tax Rate |
Lubrication Oils | Ten cents ($0.10) per quart or ten and 6/10th cents ($0.106) per liter |
Antifreeze | Twenty cents ($0.20) per gallon or five and 28/100th cents ($0.0528) per liter |
Organic Solvents | One half cent ($0.005) per gallon or one hundred thirty-two thousandths ($0.00132) per liter |
Tires | One dollar ($1.00) per tire |
B. The hard-to-dispose material wholesaler shall separately state the amount of the tax on the invoice.C. Certain Sales not Subject to Tax - No tax need be collected by the hard-to-dispose material wholesaler where the hard-to-dispose material is sold:1. To a retailer for resale or use outside this state and the wholesaler is obligated to deliver such materials to a point outside the state or to deliver them to a common carrier for transportation outside this state, or2. To a retailer not engaged in the sale of hard-to-dispose material in this state who then transports the material outside the state for the sole purpose of reselling such materials outside this state, or3. Directly to the United States Government or its agencies, or4. To another Rhode Island hard-to-dispose material wholesale tax permittee. In such case the seller must obtain a copy of the purchaser's Rhode Island hard-to-dispose material wholesale tax permit.5. Under § 2.2(C)(2) of this Part above, the hard-to-dispose wholesaler must obtain a Rhode Island exemption certificate from the purchaser.6. The wholesaler must collect the tax from retailers engaged in the sale of hard-to-dispose materials in this state on all purchases picked up by or delivered to retailers in this state, including purchases of materials earmarked by the retailer for subsequent transportation out of state for resale or use out of state.7. If a wholesaler sells hard-to-dispose materials directly to a consumer (i.e., to a manufacturer or other person using lubricating oils in its own machinery and equipment and not for resale) that sale is a retail sale of hard-to-dispose material. The wholesaler therefore becomes a "hard-to-dispose material retailer" and subject to tax for that sale. When making such sale, the wholesaler cannot charge the tax to its customer and/or separately state the tax on its customer's invoice since the law provides for the tax to be separately stated on the invoice only in the case of a sale to a hard-to-dispose material retailer.D. Application to Collect Tax 1. Each hard-to-dispose material wholesaler must apply to the tax administrator for authorization to collect the tax upon a form provided by the tax administrator. No application fee is required. Once the application is approved and processed, the wholesaler will be issued a certificate with a number which will authorize it to collect the tax.E. Returns 1. On or before the twenty-fifth (25th) day of the month, the hard-to-dispose material wholesaler must file a return along with payment for all taxes imposed under the law for the previous calendar month. Where the wholesaler has a liability for tax as a hard-to-dispose material retailer under the law, there will be no requirement to file a separate hard-to-dispose material retail tax return. In such case, the direct retail sales are to be added to the sales to retailers and entered as a total quantity on the return.2. An extension for filing a return may be granted (up to 30 days) for reasonable cause upon written request to the tax administrator.280 R.I. Code R. § 280-RICR-20-45-2.2
Amended effective 3/12/2020