All original and limited edition works of art sold in the State of Rhode Island is exempt from state sales tax, starting December 1, 2013. The following describes what art is covered under this exemption, who may sell it, and what we mean by “limited edition” works of art.
According to the law, the following works of art are covered:
- A book or other writing;
- A play;
- A musical composition;
- A painting, print, photograph or other like picture;
- A sculpture;
- Traditional and fine crafts;
- The creation of a film;
- The creation of a dance
For sales tax purposes, the most likely art forms will be visual arts and crafts.
The focus of the law relates to fine arts only. The law specifically states, the exemption does not apply to any piece or performance “created or executed for industry oriented, commercial or related production.” So, fine art photography would qualify. Commercial photography (for example, wedding photography or photographs taken as part of a commercial assignment) would not qualify.
Crafts are defined as art objects, either utilitarian or decorative, that are made by hand. Examples of traditional and fine crafts are textile art, woodworking, basketmaking, jewelry making, furniture making, metalsmithing, ceramics and pottery, and so on.
Works of art are permanent objects, not items designed or intended as a consumable. While we thoroughly respect the artistic intent and effort that goes into making candles or soaps, these items are not tax exempt.
Who may sell these works? And where?
The law covers the sale of art in Rhode Island. That sale can take place in traditional spaces, like an art gallery or an antique shop. It can take place in less traditional places, like artist studios and coffee shops or restaurants, or in temporary spaces devoted to the sale of art or dealing in art, such as “pop-up galleries” or art festivals. The work itself can be sold by the artist or by a business in Rhode Island representing the artist.
The work must be sold in Rhode Island, but does not need to be the work of a Rhode Island artist to qualify for the sales tax exemption.
What qualifies as a “limited edition work of art”?
This law provides an exemption to works of art, and not to work that is mass produced or of a commercial nature.
An “original work of art” is defined as “the creation of a solitary work, conceived and produced by the artist and author or under their direction, not intended for multiple or mass production.”
A “limited edition” work of art is defined as “the creation of a solitary work, conceived and produced by the artist or under their direction, which is intended for limited reproduction, signed and numbered by the artist.”
The key phrase is “signed and numbered by the artist.” This implies that the work is produced “under [the] direction” of the artist—rather than mass-produced — and is a “limited reproduction”.
A common example would be giclée prints, high quality digital reproductions of original works of art. These prints would need to be created under the direction of the artist, intended for limited reproduction, and signed and numbered by the artist.
For poets and writers, the mass production and sale of their work through commercial bookstores would not be covered, but self-published and direct sales by authors would be exempt.
Is art sold in RI tax free, and do sellers have to charge for tax?
You will have to apply for a sales tax permit and go through the approval process for artist exemption. Please reach out to the State Division of Taxation audit section to obtain the requirements to qualify. The audit section general telephone number is 401-574-8962. Upon approval of the artist exemption certificate, you may not have to collect RI sales tax but we cannot exempt you from having to register, collect and remit in other states. You must check in with the state that the work is going to be delivered to on its thresholds, rules – regulations on online sales.
Sales Tax Exemption on Art update (Jan. 2022)
If you received a letter from the Division of Taxation stating that any sales tax exemption certificates have expired, it does not apply to you. You do not need to take any action.
In the past, the Division of Taxation mailed out the annual reconciliation form – Form T-204W-Annual, Writers, Composers and Artists Annual Reconciliation. This year, they did not. Please download the form, below, and submit it by January 31, 2022. Read more.
If you have additional questions, feel free to reach out to the State’s Audit & Investigation Unit at Tax.firstname.lastname@example.org or call (401) 574-8962.
To contact RISCA, or to discuss specific examples of work or definitions of “limited edition”, contact us.