PROVIDENCE – The R.I. Division of Taxation proposed a new regulation Monday establishing a statewide arts district.
The proposal draws from legislation passed in July exempting artists, composers and writers selling “original and creative works” throughout Rhode Island from sales and use tax, a change from the former policy that only exempted artists in certain areas of select Rhode Island cities.
Works that qualify as exempt include books, musical compositions, film and dance, paintings and crafts. Artists who are exempted from the sales tax must submit an annual certified accounting of the total revenue from sold works under the Division of Taxation regulation.
The statewide arts tax exemption, which would go into effect Dec. 1, is expected to result in a revenue loss of $825,000, according to a report by the R.I. House of Representatives Fiscal Office.
A public hearing on the proposed regulation will be held at 9:30 a.m. on Oct. 24 at the William E. Powers Building, One Capitol Hill.