Exemption of Sales by Writers, Composers and Artists (280-RICR-20-70-11)

The amendment to the regulation clarifies which kinds of artistic works qualify for the sales tax exemption. The goal of the amendment is to provide further structure to the statutory requirement that a work of art under this program must be “one of a kind” and for “limited production.” To qualify as an eligible work, the regulation specifies the work: must not be consumable; must not be intended for mass production or commercial production; must have a limited production of no more than 300 copies; and must not be sold through an online marketplace.  These requirements are new regulatory language, although they codify standards already utilized by the Rhode Island Division of Taxation and Rhode Island State Council on the Arts.  In addition, the 300-copy limit is in line with the definition of “work of fine art” found in R.I. Gen. Laws Ch. 5-62, titled “Works of Art – Artists’ Rights.”