H7416

	2012 -- H 7416
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	LC01147
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	STATE OF RHODE ISLAND

	IN GENERAL ASSEMBLY

	JANUARY SESSION, A.D. 2012

	____________


	A N A C T
	RELATING TO TAXATION - SALES AND USE TAXES - LIABILITY AND
	COMPUTATION - PERSONAL INCOME TAX


	Introduced By: Representatives E Coderre, Johnston, O`Neill, Messier, and San Bento

	Date Introduced: February 08, 2012

	Referred To: House Finance




	It is enacted by the General Assembly as follows:

1-1	SECTION 1. Section 44-18-30.B of the General Laws in Chapter 44-18 entitled "Sales
1-2	and Use Taxes - Liability and Computation" is hereby amended to read as follows:
1-3	44-18-30.B. Exemption from sales tax for sales by writers, composers, artists --
1-4	Findings. -- (a) The general assembly makes the following findings of facts:
1-5	(1) The downtown area of the city of Providence has been characterized by blighted
1-6	areas, and dilapidated and abandoned structures;
1-7	(2) As a result, the downtown area has been designated an economic development zone
1-8	in order to stop the deterioration and stimulate economic activity;
1-9	(3) The capitol center area of the city of Providence has become an attractive location,
1-10	especially with the construction of the Providence Place Mall;
1-11	(4) In order to promote, revitalize and redevelop the "Old Downtown" area of the city of
1-12	Providence it is necessary to provide tax exemptions to this area as it has been designated as an
1-13	economic development zone;
1-14	(5) In order to promote, revitalize, and redevelop the "Downtown or other industrial or
1-15	manufacturing buildings" located in the City of Pawtucket, it is necessary to provide tax
1-16	exemptions to this area as it has been designated as an economic development zone;
1-17	(6) The development of an active artistic community, including "artists in residence", in
1-18	this area would promote economic development, revitalization, tourism, employment
1-19	opportunities, and encourage business development by providing alternative commercial
2-1	enterprises while in Providence creating a link between the Old Downtown and the Capital Center
2-2	Area;
2-3	(7) There is a separate artistic community in the town of Westerly which is important to
2-4	preserve, promote, and revitalize, and which is distinct from that in the city of Providence;
2-5	(8) There is a separate artistic community in the city of Woonsocket which is important
2-6	to promote and revitalize and which is distinct from that in the cities of Providence and Pawtucket
2-7	and the town of Westerly;
2-8	(9) There is a separate artistic community in the city of Warwick which is important to
2-9	preserve, promote, and revitalize and which is distinct from that in the cities of Providence,
2-10	Pawtucket, Woonsocket and the town of Westerly;
2-11	(10) There are separate artistic communities in the city of Newport and in the town of
2-12	Tiverton which are important to promote and revitalize and which are distinct from those in the
2-13	cities of Providence, Pawtucket, Warwick and Woonsocket and the towns of Westerly and Little
2-14	Compton;
2-15	(11) There is a separate artistic community in the town of Warren which is important to
2-16	promote and revitalize and which is distinct from that in the cities of Providence, Pawtucket,
2-17	Newport, Warwick and Woonsocket and the towns of Westerly and Tiverton.
2-18	(b) (1) This section only applies to sales by writers, composers and artists residing in and
2-19	conducting a business within a section of the defined economic development zone in the cities of
2-20	Providence or Pawtucket, or the defined economic development zone in the town of Westerly or
2-21	the defined economic zone in the city of Woonsocket, or the defined economic zone in the city of
2-22	Warwick, or in those areas within the city of Newport, and the town of Little Compton, which are
2-23	zoned "general business," "waterfront business," or "limited business" or have been designated
2-24	by the city of Newport as part of the arts district, or in those areas of the town of Warren which
2-25	are zoned "waterfront district," "special district," "village business district," "manufacturing
2-26	district," "business district" or "Warren historic district," or in those areas of the town of Tiverton
2-27	which are zoned "business commercial," "business waterfront" or "village commercial." For the
2-28	purposes of this section, a "work" means an original and creative work, whether written,
2-29	composed or executed for "one-of-a-kind limited" production and which falls into one of the
2-30	following categories:
2-31	(i) A book or other writing;
2-32	(ii) A play or the performance of said play;
2-33	(iii) A musical composition or the performance of said composition;
3-34	(iv) A painting or other like picture;
3-35	(v) A sculpture;
3-36	(vi) Traditional and fine crafts;
3-37	(vii) The creation of a film or the acting within the film;
3-38	(viii) The creation of a dance or the performance of the dance.
3-39	(2) For the purposes of this section, a "work" includes any product generated as a result
3-40	of any of the above categories.
3-41	(3) For the purposes of this section, a "work" does not apply to any piece or performance
3-42	created or executed for industry oriented or related production.
3-43	(c) (1) This section applies to sales by any individual:
3-44	(i) Who is a resident of and has a principal place of business situated in the section of the
3-45	economic development zone designated as the arts and entertainment district in the downtown
3-46	area of the city of Providence or in the city of Pawtucket, or the defined economic development
3-47	zone in the town of Westerly or the defined economic zone in the city of Woonsocket, or the
3-48	defined economic zone in the city of Warwick, or who is a resident of and has a principal place of
3-49	business situated in those areas within the city of Newport or the town of Little Compton, which
3-50	are zoned "general business," "waterfront business," or "limited business," or have been
3-51	designated by the city of Newport as part of the arts district, or who is a resident of and has a
3-52	principal place of business situated in those areas within the town of Warren which are zoned
3-53	"waterfront district," "special district," "village business district," "manufacturing district,"
3-54	"business district" or "Warren historic district," or who is a resident or has a principal place of
3-55	business situated in those areas within the town of Tiverton which are zoned "business
3-56	commercial," "business waterfront" or "village commercial." For the purposes of this section, the
3-57	Providence arts and entertainment district in Providence is defined as the area bounded by Pine
3-58	Street to the southeast, Dorrance Street to the northeast, Sabin Street to the northwest and Empire
3-59	Street to the southwest. Said Providence arts and entertainment district also includes the area
3-60	beginning at the point of intersection of Acorn Street and Harris Avenue, then turning east onto
3-61	Atwells Avenue to Service Road 7, then turning southerly onto Service Road 7 to Westminster
3-62	Street, then turning westerly onto Westminster Street, continuing until Bridgham, then turning
3-63	south onto Bridgham to Cranston Street, then turning southwesterly onto Cranston Street, then
3-64	continuing to Messer Street, then turning north onto Messer Street to Westminster Street, turning
3-65	west onto Westminster Street to US Hwy 6 off ramp, then heading west on US Hwy 6 to Sheridan
3-66	Street, then heading northeast on Sheridan Street to Aleppo Street, then turning southeast along
3-67	Aleppo Street to Pelham Street, then heading northeast on Pelham Street to Manton Avenue, then
3-68	continuing southeast on Manton Avenue until Delaine Street, then heading northeast on Delaine
4-1	Street until Appleton Street, then continuing northwesterly on Appleton Street until Bowdoin
4-2	Street, then heading north on Bowdoin Street until Barstow Street, then heading east on Barstow
4-3	until Valley Street, then heading northeast on Valley Street to Hemlock Street, then turning
4-4	southeast on Hemlock Street until Promenade Street, then heading east on Promenade Street to
4-5	Acorn Street, then heading south on Acorn Street to the intersection of Acorn Street and Harris
4-6	Avenue. The named streets are included in the Providence district; and in Pawtucket is defined as
4-7	the area beginning at the point of intersection of Dexter Street and the Central Falls line, then east
4-8	along the Central Falls line to the Blackstone River, then north along the city boundary on the
4-9	Blackstone River to the Cumberland line, then west along the Pawtucket city boundary line to I-
4-10	95, then south along I-95 to Pine Street, then north on Pine Street to AMTRAK Right of Way,
4-11	then northwest along the AMTRAK Right of Way to Dexter Street, then north on Dexter Street to
4-12	the Central Falls line. Said Pawtucket arts and entertainment district also includes the area
4-13	beginning at a point in the intersection of Dexter Street and the Pawtucket/Central Falls city
4-14	boundary; then continuing westerly along Pawtucket/Central Falls city boundary to the
4-15	intersection of Pine Street; then continuing southerly along Pine Street to the intersection of
4-16	Conant Street; then continuing southwesterly along Conant Street to the Intersection of Weeden
4-17	Street; then continuing west along Weeden Street to the intersection of New Street; then
4-18	continuing southerly along New Street to the intersection of Fairlawn Avenue; then continuing
4-19	southerly along Fairlawn Avenue to the intersection of Mineral Spring Avenue; then continuing
4-20	east along Mineral Spring Avenue to the intersection of San Antonio Way; then continuing
4-21	southeasterly along San Antonio Way to the intersection of Grotto Avenue; then continuing east
4-22	along Grotto Avenue to the intersection with the Moshassuck River; then continuing south along
4-23	the Moshassuck River to the intersection with I-95; then continuing south along I-95 to the
4-24	intersection with the Pawtucket/Providence city boundary; then continuing east along the
4-25	Pawtucket/Providence city boundary to the intersection of the Moshassuck River; then continuing
4-26	north along the Moshassuck River to the intersection of Grenville Street; then continuing east
4-27	along Grenville Street to the intersection of Main Street; then continuing south along Main Street
4-28	to the intersection of Pawtucket Avenue; then continuing northeast along Pawtucket Avenue to
4-29	the intersection of Glenwood Avenue; then continuing northwest along Glenwood Avenue to the
4-30	intersection of West Avenue; then continuing northeast along West Avenue to the intersection of
4-31	Trenton Street; then continuing west along Trenton Street to the intersection of Main Street; then
4-32	continuing south along Main Street to a point approximately eighty-three feet (83') feet south
4-33	from the southerly line of Campbell Terrace; then west and north along the rear property lines of
4-34	those properties fronting Campbell Terrace to the intersection of Dudley Street (now abandoned);
5-1	then east along a portion of Dudley Street (now abandoned) and Dudley Street to the intersection
5-2	of Main Street; then continuing north along Main Street to the intersection of Warren Avenue;
5-3	then continuing west along Warren Avenue to the intersection of Esten Avenue; then continuing
5-4	north along Esten Avenue to the intersection of Barnes Street; then continuing northwest across I-
5-5	95 to the Providence and Worcester Railroad right-of-way; then continuing north along the
5-6	Providence Worcester Railroad right-of-way to the intersection of Mineral Spring Avenue; then
5-7	continuing east along Mineral Spring Avenue to the intersection of Pine Street; then continuing
5-8	north along Pine Street to the intersection of Goff Avenue; then continuing east along Goff
5-9	Avenue to the intersection of Dexter Street; then continuing north along Dexter Street to the
5-10	intersection with the Pawtucket/ Central Falls city boundary, also being the point and place of
5-11	beginning; excluding the Mineral Spring Avenue Cemetery that is a National Register Historic
5-12	District. The named streets are included in the district. The Westerly arts and entertainment
5-13	district is defined as assessor's plat 56, lots 1 through 24, lot 48, lots 50 through 62, and lots 71
5-14	through 82, and assessors plat 66, lots 22 through 26, and lots 29 through 36 the Woonsocket arts
5-15	and entertainment district is defined as the area beginning at a point of land on the southwest
5-16	bank of the Blackstone River abutting the bridge for the Providence & Worcester Railroad and
5-17	proceeding northerly to a point at the intersection of Worrall Street, Clinton Street and Harry S.
5-18	Truman Drive, then proceeding northwesterly along Worrall Street to its intersection with Social
5-19	Street, then turning westerly on Social Street proceeding to its intersection with Main Street,
5-20	Blackstone Street and North Main Street, then turning northwesterly and proceeding along
5-21	Blackstone Street to its intersection with River Street, then turning northerly and proceeding
5-22	along River Street to its intersection with the north/east bank of Blackstone River, then following
5-23	the riverbank southerly to the bridge at Bernon Street and turning easterly crossing the Blackstone
5-24	River via Bernon Street and proceeding to its intersection with Front Street, then turning
5-25	northeasterly on Front Street and proceeding to its intersection with Hamlet Avenue, and to
5-26	include the former courthouse on the southerly side of Front Street at its intersection with Hamlet
5-27	Avenue, then turning easterly on Hamlet Avenue and proceeding to its intersection with Manville
5-28	Road, then turning southeasterly on Manville Road and proceeding to its intersection with
5-29	Davison Avenue, then turning northeasterly on Davison Avenue and proceeding to a point on the
5-30	south/west bank of the Blackstone River, then turning northerly, following the southerly
5-31	riverbank to the point of beginning. The abovementioned streets are included in the district. The
5-32	Warwick arts district is defined as that area known as Pontiac Village, beginning on Route 5 at
5-33	the Warwick/Cranston municipal boundary, then south to the intersection of Route 5 and the
5-34	Pawtuxet River, then following the Pawtuxet River in an easterly and northerly direction to the
6-1	municipal boundary in the vicinity of Knight Street, then from the intersection of Knight Street
6-2	and the municipal boundary westerly along the Warwick/Cranston municipal boundary to the
6-3	intersection of Route 5 and Greenwich Avenue. The above named streets are included in the
6-4	district.
6-5	(ii) Who is determined by the tax administrator, after consideration of any evidence he or
6-6	she deems necessary or which is submitted to him or her by the individual, to have written,
6-7	composed, or executed, either solely or jointly, a work or works which would fall into one of the
6-8	categories listed in subsection (b)(1).
6-9	(2) This section also applies to sales by any other gallery located in the arts and
6-10	entertainment district described in subsection (c)(1)(i) as well as any other arts and entertainment
6-11	district designated by the general assembly, as well as to sales by any other gallery located in
6-12	those areas within the city of Newport, or the town of Little Compton, which are zoned "general
6-13	business," "waterfront business," or "limited business" or have been designated by the city of
6-14	Newport as part of the arts district, as well as to sales by any other gallery located in those areas
6-15	within the town of Warren which are zoned "waterfront district," "special district," "village
6-16	business district," "manufacturing district," "business district" or "Warren historic district," as
6-17	well as to sales by any other gallery located in those areas within the town of Tiverton which are
6-18	zoned "business commercial," "business waterfront" or "village commercial."
6-19	(3) The tax administrator shall not make a determination unless:
6-20	(i) The individual(s) concerned duly make(s) an application to the tax administrator for
6-21	the sales tax exemption which applies to the works defined in this section; and
6-22	(ii) The individual has complied and continues to comply with any and all requests made
6-23	by the tax administrator.
6-24	(d) Any individual to whom this section applies and who makes an application to the tax
6-25	administrator is entitled to a sales tax exemption for the sale of a work or works sold from the
6-26	individual's business located in the economic development zone which would, apart from this
6-27	section, be subject to the tax rate imposed by the state of Rhode Island.
6-28	(e) When an individual makes a request for the exemption, the tax administrator is
6-29	entitled to all books, documents, or other evidence relating to the publication, production or
6-30	creation of the works that may be deemed necessary by the tax administrator for the purposes of
6-31	the exemption. The time period in which to provide this information is in the sole discretion of
6-32	the tax administrator and specified in the notice.
6-33	(f) In addition to the information required in subsection (e), the tax administrator may
6-34	require the individual(s) to submit an annual certified accounting of the numbers of works sold,
7-1	the type of work sold, and the date of the sale. Failure to file this report may, in the sole discretion
7-2	of the tax administrator, terminate the individual's eligibility for the exemption.
7-3	(g) Any person storing, using, or otherwise consuming in this state any work or works
7-4	which is deemed to be exempt from the sales tax pursuant to this section is not liable for the use
7-5	tax on the work or works.
7-6	(h) Notwithstanding the provisions of this section, any individual to whom this section
7-7	may apply shall comply with all the administration, collection, and other provisions of chapters
7-8	18 and 19 of this title.
7-9	SECTION 2. Section 44-30-1.1 of the General Laws in Chapter 44-30 entitled "Personal
7-10	Income Tax" is hereby amended to read as follows:
7-11	44-30-1.1. Exemption from tax for writers, composers and artists. -- (a) This section
7-12	shall only apply to writers, composers and artists residing within a section of the defined
7-13	economic development zone within the city of Providence, Pawtucket, Woonsocket or Warwick,
7-14	or the economic development zone within the town of Westerly as defined in section 44-18-
7-15	30B(c)(1)(i), or within the city of Newport or within the town of Tiverton or the town of Little
7-16	Compton, or within those areas of the town of Warren which are zoned "waterfront district,"
7-17	"special district," "village business district," "manufacturing district," "business district" or
7-18	"Warren historic district", or a tax pass-through entity wholly owned by one or more such
7-19	individuals and who create such work while residing in the zone, or in the case of Newport or the
7-20	town of Little Compton, within those areas of the city or town which are zoned "general
7-21	business," "waterfront business" or "limited business" or have been designated by the city of
7-22	Newport as part of the arts district, or in the case of Warren, within those areas of the town which
7-23	are zoned "waterfront district," "special district," "village business district," "manufacturing
7-24	district," "business district" or "Warren historic district," or in the case of Tiverton with those
7-25	areas of the town which are zoned "business commercial," "business waterfront" or "village
7-26	commercial." For the purposes of this section, a "work" means an original and creative work,
7-27	whether written, composed, created or executed for "one-of-a-kind, limited" production, before or
7-28	after the passing of this section, which falls into one of the following categories: (1) a book or
7-29	other writing; (2) a play or the performance of said play; (3) a musical composition or the
7-30	performance of said composition; (4) a painting or other like picture; (5) a sculpture; (6)
7-31	traditional and fine crafts; (7) the creation of a film or the acting of said film; (8) the creation of a
7-32	dance or the performance of said dance. For purposes of this section, a "work" does not apply to
7-33	any piece or performance created or executed for industry oriented or related production.
8-34	(b) (1) This section shall apply to any individual:
8-35	(i) Who is a resident within the section of the economic development zone designated as
8-36	the arts and entertainment district in the downtown areas of the cities of Providence, Woonsocket
8-37	or Pawtucket, and deriving the income exempted from within said district while a resident of said
8-38	zone, or who is a resident within the section of the arts and entertainment district in the town of
8-39	Westerly, as defined in section 44-18-30B(c)(1)(i) and who derives the income exempted from
8-40	within said district while a resident of said zone. For the purposes of this section, the "Providence
8-41	arts and entertainment district" is defined as the area bounded by Pine Street to the southeast,
8-42	Dorrance Street to the northeast, Sabin Street to the northwest and Empire Street to the southwest.
8-43	Said Providence arts and entertainment district also includes the area beginning at the point of
8-44	intersection of Acorn Street and Harris Avenue, then turning east onto Atwells Avenue to Service
8-45	Road 7, then turning southerly onto Service Road 7 to Westminster Street, then turning westerly
8-46	onto Westminster Street, continuing until Bridgham, then turning south onto Bridgham to
8-47	Cranston Street, then turning southwesterly onto Cranston Street, then continuing to Messer
8-48	Street, then turning north onto Messer Street to Westminster Street, turning west onto
8-49	Westminster Street to US Hwy 6 off ramp, then heading west on US Hwy 6 to Sheridan Street,
8-50	then heading northeast on Sheridan Street to Aleppo Street, then turning southeast along Aleppo
8-51	Street to Pelham Street, then heading northeast on Pelham Street to Manton Avenue, then
8-52	continuing southeast on Manton Avenue until Delaine Street, then heading northeast on Delaine
8-53	Street until Appleton Street, then continuing northwesterly on Appleton Street until Bowdoin
8-54	Street, then heading north on Bowdoin Street until Barstow Street, then heading east on Barstow
8-55	until Valley Street, then heading northeast on Valley Street to Hemlock Street, then turning
8-56	southeast on Hemlock Street until Promenade Street, then heading east on Promenade Street to
8-57	Acorn Street, then heading south on Acorn Street to the intersection of Acorn Street and Harris
8-58	Avenue. The abovementioned streets shall be included in the district. The "Westerly arts and
8-59	entertainment district" is defined in section 44-18-30B(c)(1)(i). The "Pawtucket arts and
8-60	entertainment district" shall be defined as the area beginning at the point of intersection of Dexter
8-61	Street and the Central Falls line, then east along the Central Falls Line to the Blackstone River,
8-62	then north along the city boundary on the Blackstone River to the Cumberland line, then west
8-63	along the Pawtucket city boundary line to I-95, then south along I-95 to Pine Street, then north on
8-64	Pine Street to AMTRAK Right of Way, then northwest along the AMTRAK Right of Way to
8-65	Dexter Street, then north on Dexter Street to the Central Falls line. Said Pawtucket arts and
8-66	entertainment district also includes the area beginning at a point in the intersection of Dexter
8-67	Street and the Pawtucket/Central Falls city boundary; then continuing westerly along
8-68	Pawtucket/Central Falls city boundary to the intersection of Pine Street; then continuing southerly
9-1	along Pine Street to the intersection of Conant Street; then continuing southwesterly along Conant
9-2	Street to the Intersection of Weeden Street; then continuing west along Weeden Street to the
9-3	intersection of New Street; then continuing southerly along New Street to the intersection of
9-4	Fairlawn Avenue; then continuing southerly along Fairlawn Avenue to the intersection of Mineral
9-5	Spring Avenue; then continuing east along Mineral Spring Avenue to the intersection of San
9-6	Antonio Way; then continuing southeasterly along San Antonio Way to the intersection of Grotto
9-7	Avenue; then continuing east along Grotto Avenue to the intersection with the Moshassuck River;
9-8	then continuing south along the Moshassuck River to the intersection with I-95; then continuing
9-9	south along I-95 to the intersection with the Pawtucket/Providence city boundary; then continuing
9-10	east along the Pawtucket/Providence city boundary to the intersection of the Moshassuck River;
9-11	then continuing north along the Moshassuck River to the intersection of Grenville Street; then
9-12	continuing east along Grenville Street to the intersection of Main Street; then continuing south
9-13	along Main Street to the intersection of Pawtucket Avenue; then continuing northeast along
9-14	Pawtucket Avenue to the intersection of Glenwood Avenue; then continuing northwest along
9-15	Glenwood Avenue to the intersection of West Avenue; then continuing northeast along West
9-16	Avenue to the intersection of Trenton Street; then continuing west along Trenton Street to the
9-17	intersection of Main Street; then continuing south along Main Street to a point approximately
9-18	eighty-three feet (83') feet south from the southerly line of Campbell Terrace; then west and north
9-19	along the rear property lines of those properties fronting Campbell Terrace to the intersection of
9-20	Dudley Street (now abandoned); then east along a portion of Dudley Street (now abandoned) and
9-21	Dudley Street to the intersection of Main Street; then continuing north along Main Street to the
9-22	intersection of Warren Avenue; then continuing west along Warren Avenue to the intersection of
9-23	Esten Avenue; then continuing north along Esten Avenue to the intersection of Barnes Street;
9-24	then continuing northwest across I-95 to the Providence and Worcester Railroad right-of-way;
9-25	then continuing north along the Providence Worcester Railroad right-of-way to the intersection of
9-26	Mineral Spring Avenue; then continuing east along Mineral Spring Avenue to the intersection of
9-27	Pine Street; then continuing north along Pine Street to the intersection of Goff Avenue; then
9-28	continuing east along Goff Avenue to the intersection of Dexter Street; then continuing north
9-29	along Dexter Street to the intersection with the Pawtucket/ Central Falls city boundary, also being
9-30	the point and place of beginning; excluding the Mineral Spring Avenue Cemetery that is a
9-31	National Register Historic District. The abovementioned streets shall be included in the district.
9-32	The "Woonsocket arts and entertainment district" shall be defined as the area beginning at a point
9-33	of land on the southwest bank of the Blackstone River abutting the bridge for the Providence &
9-34	Worcester Railroad and proceeding northerly to a point at the intersection of Worrall Street,
10-1	Clinton Street and Harry S. Truman Drive, then proceeding northwesterly along Worrall Street to
10-2	its intersection with Social Street, then turning westerly on Social Street proceeding to its
10-3	intersection with Main Street, Blackstone Street and North Main Street, then turning
10-4	northwesterly and proceeding along Blackstone Street to its intersection with River Street, then
10-5	turning northerly and proceeding along River Street to its intersection with the northeast bank of
10-6	Blackstone River, then following the riverbank southerly to the bridge at Bernon Street and
10-7	turning easterly crossing the Blackstone River via Bernon Street and proceeding to its intersection
10-8	with Front Street, then turning northeasterly on Front Street and proceeding to its intersection
10-9	with Hamlet Avenue, and to include the former Courthouse on the southerly side of Front Street
10-10	at its intersection with Hamlet Avenue, then turning easterly on Hamlet Avenue and proceeding
10-11	to its intersection with Manville Road, then turning southeasterly on Manville Road and
10-12	proceeding to its intersection with Davison Avenue, then turning northeasterly on Davison
10-13	Avenue and proceeding to a point on the southwest bank of the Blackstone River, then turning
10-14	northerly, following the southerly riverbank to the point of beginning. The abovementioned
10-15	streets are included in the district. The Warwick arts district is defined as that area known as
10-16	Pontiac Village, beginning on Route 5 at the Warwick/Cranston municipal boundary, then south
10-17	to the intersection of Route 5 and the Pawtuxet River, then following the Pawtuxet River in an
10-18	easterly and northerly direction to the municipal boundary in the vicinity of Knight Street, then
10-19	from the intersection of Knight Street and the municipal boundary westerly along the
10-20	Warwick/Cranston municipal boundary to the intersection of Route 5 and Greenwich Avenue.
10-21	The above named streets are included in the district.
10-22	This section shall also apply to any individual who is a resident of the city of Newport or
10-23	the town of Tiverton or the town of Little Compton and whose income otherwise qualifies for an
10-24	exemption as provided for in this section.
10-25	This section shall also apply to any individual who is a resident of the town of Warren
10-26	and whose income otherwise qualifies for an exemption as provided for in this section.
10-27	(ii) Who is determined by the tax administrator, after consideration of any evidence in
10-28	relation to the matter which the individual submits to him or her and after such consultation as
10-29	may seem to him or her to be necessary with such person or body of persons as in his or her
10-30	opinion may be of assistance to him or her, to have written, composed or executed either solely or
10-31	jointly with another individual, a work or works that would fall into one of the categories listed in
10-32	subsection (a) of this section.
10-33	(c) (1) An individual to whom this section applies and who duly makes a claim to the tax
10-34	administrator in that behalf shall, subject to subdivision (2) of this subsection, be entitled to have
11-1	the profits or gains arising to him or her from the publication, production or sale of a work or
11-2	works in relation to which the tax administrator has made a determination under paragraph
11-3	(b)(1)(ii) of this section to be taken as a modification reducing federal adjusted gross income.
11-4	(2) The modification authorized by this section shall apply to the year in which the profit
11-5	or gain from the publication, production or sale of a work is realized.
11-6	(d) The tax administrator may serve on an individual who makes a claim under this
11-7	subsection a notice or notices, in writing, requiring him or her to make available within any time
11-8	that may be specified in the notice of all such books, accounts and documents in his or her
11-9	possession or power as may be requested, being books, accounts and documents relating to the
11-10	publication, production or sale of the work in respect of the profits or gains of which exemption is
11-11	claimed.
11-12	(e) For the purpose of determining the amount of profits or gains subject to modification
11-13	under this section, the tax administrator may make any apportionment of receipts and expenses
11-14	that may be necessary.
11-15	(f) Notwithstanding any other provisions of this chapter, any individual seeking relief
11-16	under this section shall file a Rhode Island personal income tax return listing the modification
11-17	reducing federal adjusted gross income relating to profits or gains realized from the works as
11-18	defined in this section.
11-19	SECTION 3. This act shall take effect upon passage.

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	LC01147
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	EXPLANATION
	BY THE LEGISLATIVE COUNCIL
	OF
	A N A C T
	RELATING TO TAXATION - SALES AND USE TAXES - LIABILITY AND
	COMPUTATION - PERSONAL INCOME TAX
	***

12-1	This act would amend the laws for tax exempt artistic communities to include certain
12-2	parts of the city of Pawtucket.
12-3	This act would take effect upon passage.

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	LC01147
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H7416