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.