Budget & Taxes (Sales Tax)

SB 2028 imposes a tiered sales tax on digital advertising services sold within Rhode Island, affecting large digital advertising companies based on their global revenue (2.5% for $100M-$1B revenue, 5% for $1B-$5B, 7.5% for $5B-$15B). The tax revenue will be distributed annually to specific state funds: 10% to public transit (RIPTA), 15% to climate resiliency, 5% to university research, 20% to housing, 10% to school lunches, 20% to municipal resilience, and 20% to the general fund. The tax applies to purchases of digital ads within Rhode Island and takes effect on July 1, 2026. It does not allow companies to add the tax as a separate fee on customer invoices but requires clear disclosure of the amount.