R.I. Gen. Laws § 44-18-27 — Tax on rental income to retailer

If the sole use of the property, other than retention, demonstration, or display in
the regular course of business, is the rental of the property while holding it for
sale or rental, the purchaser or lessor may elect to pay the tax as measured by the
cost of the property to him or her. The election is exercised by payment of the sales
tax to the seller or by filing the required use tax return on or before the due date.
Upon a subsequent sale of the property, the person making the sale shall include the
full amount of the selling price in his or her gross receipts and shall pay the tax
on the property.