By Catherine Welch
Providence, RI – It may be a sales tax holiday in Massachusetts this weekend, but Rhode Island's tax administrator reminds residents that they'll still need to pay the state's use tax.
Tax administrator David Sullivan says the 7-percent use tax applies when residents bring sales tax-free items back into the Ocean State. There are two ways for residents to pay the use tax, says Sullivan.
"You can file actually a use-tax return for the purchases you make that month, or you can wait and file it on your personal tax return."
Violators are usually caught through business audits, says Sullivan. And while paying the use tax hinges on the honor system, he says tens of thousands of Rhode Islanders pay what they owe.