§ 44-18.1-14 - Direct mail sourcing. - Rhode Island Statutes

SECTION 44-18.1-14

   § 44-18.1-14  Direct mail sourcing. –(A) Notwithstanding § 44-18.1-11, a purchaser of direct mail that is not aholder of a direct pay permit shall provide to the seller in conjunction withthe purchase a Direct Mail Form or information to show the jurisdictions towhich the direct mail is delivered to recipients.

   (1) Upon receipt of the Direct Mail Form, the seller isrelieved of all obligations to collect, pay, or remit the applicable tax andthe purchaser is obligated to pay or remit the applicable tax on a direct paybasis. A Direct Mail Form shall remain in effect for all future sales of directmail by the seller to the purchaser until it is revoked in writing.

   (2) Upon receipt of information from the purchaser showingthe jurisdictions to which the direct mail is delivered to recipients, theseller shall collect the tax according to the delivery information provided bythe purchaser. In the absence of bad faith, the seller is relieved of anyfurther obligation to collect tax on any transaction where the seller hascollected tax pursuant to the delivery information provided by the purchaser.

   (B) If the purchaser of direct mail does not have a directpay permit and does not provide the seller with either a Direct Mail Form ordelivery information, as required by subsection (A) of this section, the sellershall collect the tax according to § 44-18.1-11, subsection (A)(5).Nothing in this paragraph shall limit a purchaser's obligation for sales or usetax to any state to which the direct mail is delivered.

   (C) If a purchaser of direct mail provides the seller withdocumentation of direct pay authority, the purchaser shall not be required toprovide a Direct Mail Form or delivery information to the seller.