Section 280-RICR-20-70-11.6 - Sales and Use Tax ExemptionA. The exemption from sales and use tax for sales of artistic works applies to sales by: 1. An individual who is a resident of and has a principal place of business situated in this state, and has been determined by the tax administrator, in consultation with the council, to have written, composed, or executed, either solely or jointly, a work or works, by the individual. Such determination shall be made after consideration of any evidence submitted by the individual.2. A writer, composer or artist conducting their business as a legal entity organized and registered under the laws of this state and that has its principal place of business situated in this state, and has been determined by the tax administrator, in consultation with the council, to have written, composed, or executed, either solely or jointly, a work or works. Such determination shall be made after consideration of any evidence submitted by the entity.3. Any art gallery located in the state of Rhode Island. a. Example 1. An art gallery located in Providence, RI sells a "work" for the price of $1000. Payment is made directly to the art gallery operator. This sale is not subject to sales and use tax, provided that the operator of the art gallery has submitted an "Application for Sales Tax Exemption for Artistic Works" and received an exemption number from the Division of Taxation prior to the sale, which must be written on the customer invoice.b. Example 2. A "pop-up gallery" located at a temporary location in Rhode Island sells a "work" for the price of $1000. Payment is made directly to the art gallery operator. This sale is not subject to sales and use tax provided that the operator of the art gallery has submitted an "Application for Sales Tax Exemption for Artistic Works" and received an exemption number from the Division of Taxation prior to the sale. The exemption number assigned by the Division of Taxation must be shown on the customer invoice.c. Example 3. A promoter schedules an art festival in a city or town in Rhode Island and rents out space at the event to individual vendors who will be selling "works". The promoter, upon submitting an application and in consideration of the type of art items being sold (works), will be issued a blanket "Certificate of Exemption" by the Division of Taxation. This exemption will exempt the sale of a "work" by all vendors operating at the show who have not individually filed for and received a numbered exemption certificate for the sale of artistic "works." Vendors must still obtain a temporary sales tax permit from the promoter of the show. At the conclusion of the show, vendors must file with the promoter a sales tax return with payment for any items subject to sales tax. In addition, the vendor must also fill out and submit along with the sales tax return, a reconciliation of the sales and activity of the show. Failure to submit the sales tax return or the reconciliation will prevent the vendor from being able to participate in future shows.280 R.I. Code R. § 280-RICR-20-70-11.6