Sales Tax Exemption Policy

The purpose of this policy is to provide departments, supervisors, and employees of Rhode Island School of Design (RISD), with specific policies and procedures regarding sales tax exemption.

The policy applies to all faculty, staff, students and others who incur expenses while engaged in RISD business.

RISD is a non-profit institution and a charitable tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code. RISD has been granted an exemption from payment of state sales tax on the goods and services it purchases in the states of Rhode Island and Massachusetts.

Payments made through purchasing or other RISD offices will, as a general matter, be entitled to the sales tax exemption.

RISD’s tax-exempt certificate(s) may only be used for legitimate college business purposes. The tax-exempt certificate cannot be used for personal purchases. Using the tax-exempt number for non-RISD business can jeopardize the College’s tax-exempt status.

Any person authorized to make purchases on behalf of the college should confirm that the vendor has been issued the correct tax exemption number.

Sales and Meals Tax

RISD is exempt from state sales and meals tax for goods and services purchased in or shipped to RI, MA, and NY. To avoid paying sales or meals tax when purchasing goods with a PCard or Travel & Entertainment (T&E) Card, cardholders must:

1. Inform the vendor at the time of purchase that the purchase is for RISD business and is exempt from state sales tax.
2. Provide the vendor with RISD’s tax exempt number. (RI: 66; MA: 746199040; NY: EX 172126).
3. Provide vendor a copy of the Certificate of Exemption (available under the Procurement and Accounts Payable forms on info.risd.edu).
4. If sales or meals tax is billed to the cardholder's account, cardholders/departments can ask the vendor to remove the tax; however, note that it is at the vendor’s discretion to honor or reject RISD’s sales tax exemption.

If you have questions about the applicability of the sales tax exemption, please contact Procurement.

As a general matter, expenses incurred for transportation (plane, rail, etc.) and hotel expenses are not exempt from sales tax. Travel expenses incurred by RISD employees for meals while traveling are also subject to sales tax.

Sales tax incurred with personal funds for RISD business travel and for business meals will be reimbursed. Sales tax incurred with personal funds when the purchase was made in or shipped to RI, MA, or NY will not be reimbursed. Requests for sales tax reimbursements for business purchases made in or shipped to other states will be reimbursed up to $20.

Non-compliance with this policy may result in disciplinary action. Actions that may be taken include, but are not limited to:

• reduction of purchasing card limits
• termination of purchasing card privileges temporarily or permanently
• removal of travel privileges temporarily or permanently, and/or
• further disciplinary action up to and including suspension without pay, or termination of employment, in accordance with applicable disciplinary procedures

Requirements before the tax exemption is granted may include:

• The exemption certificate number must be provided to the supplier when the purchase is made.
• Various forms found on the state's website must accompany the certificate at the time of purchase.
• All purchases must be billed directly to RISD and paid for by the College.

Links to the College's tax-exempt certificates can be found on the Procurement Services Tax Exemption page.

Additional notes

This policy pertains to business expenses supported by any source of RISD funds, including, but not limited to, general operating budgets, designated funds, restricted gifts, endowment income, sponsored agreements, and student organizations. Where sponsor, agency, or other regulations are more restrictive than prescribed by this policy, the sponsor, agency, or other regulations will apply.

DISCLAIMER: THIS IS A LIVING DOCUMENT. This document discusses policies/procedures meant to establish an operational reference point. As data is gathered and risks assessed, the policies/processes in this document will be revised as needed, and any and all updates will be communicated to the RISD community. We understand that no policy can account for every single scenario we may encounter. If a situation arises where an exception to the policies/procedures outlined in this manual is required, a letter of authorization from the Senior Vice President, Finance & Administration, or a delegate will be required.

Policy Sanctions

RISD reserves the right to review alleged violations of this policy in conjunction with other appropriate offices and under other applicable College policies, procedures, and collective bargaining agreements, including but not limited to those listed under Related Policies. Failure to comply with this policy and other Related Policies is subject to disciplinary action and sanctions per applicable disciplinary procedures.

This policy was created on: 7/20/2013

This policy was last reviewed/modified on: 9/2/2025

Next scheduled review: 10/21/2027

Issuing Office

Controller’s Office

Responsible Officer

Senior Vice President of Finance and Administration

Individuals/offices required for review and changes

Director of Procurement Services

Credit Card Services and Reimbursement Administrator

Controller