2012 -- H 7725

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LC00912

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO TAXATION - SALES AND USE TAXES- LIABILITY AND

COMPUTATION

     Introduced By: Representatives Carnevale, Hull, Williams, DeSimone, and Slater

     Date Introduced: February 16, 2012

     Referred To: House Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 44-18 of the General Laws entitled "Sales and Use Taxes -

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Liability and Computation" is hereby amended by adding thereto the following section:

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     44-18-30E. Annual Sales Tax Holiday. – (a) A series of periods of sales tax holidays for

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alcoholic beverages which are not to be consumed on the premises are hereby established. During

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these periods, purchases of alcoholic beverages made by individuals for personal use and which

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are not to be consumed on the premises where the sale is made shall not be subject to Rhode

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Island sales or use taxes. The periods of sales tax holidays shall occur as follows:

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     (1) Memorial Day sales tax holiday period. In 2012, there shall be a sales tax holiday

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period commencing on Tuesday, May 22, 2012, and extending through to and including Tuesday,

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May 29, 2012. Thereafter in each succeeding calendar year there shall be a sales tax holiday

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commencing on the Tuesday before Memorial Day and extending through to and including the

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Tuesday immediately following Memorial Day.

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     (2) Fourth of July sales tax holiday period. In 2012, there shall be a sales tax holiday

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period commencing on Saturday, June 23, 2012, and extending through to and including Tuesday,

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July 3, 2012. Thereafter in each succeeding calendar year there shall be a sales tax holiday

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commencing on June 23rd and extending through to and including July 3rd.

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     (3) Labor Day sales tax holiday period. In 2012, there shall be a sales tax holiday period

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commencing on Tuesday, August 22, 2012, and extending through to and including Tuesday,

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September 4, 2012. Thereafter in each succeeding calendar year, there shall be a sales tax holiday

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commencing on the Tuesday before Labor Day and extending through to and including the

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Tuesday immediately following Labor Day.

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     (4) Thanksgiving Day sales tax holiday period. In 2012, there shall be a sales tax holiday

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period commencing on Tuesday, November 13, 2012, and extending through to and including

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Friday, November 23, 2012. Thereafter in each succeeding calendar year there shall be a sales tax

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holiday commencing nine (9) days before Thanksgiving and extending through to and including

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the Friday immediately following Thanksgiving.

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     (5) Winter holidays sales tax holiday period. In 2012, there shall be a sales tax holiday

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period commencing on Tuesday, December 11, 2012, and extending through to and including

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Monday, December 31, 2012. Thereafter in each succeeding calendar year there shall be a sales

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tax holiday commencing on December 11th and extending through to and including December

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31st.

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     (b) The exemption only applies to sales of alcoholic beverages which are not to be

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consumed on the premises where the purchase is made. As used herein, the term “alcoholic

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beverage” means any liquid which either by itself or by mixture with any other liquid or liquids is

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or may become fit for human consumption as a drink and which contains five-tenths of one

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percent (.5%) or more of alcohol by weight.

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     (c) Purchases by corporations or other businesses and purchases by individuals for

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business of alcoholic beverages use remain taxable for sales and/or use taxes.

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     (d) When the total sale price the alcoholic beverages purchased by a single purchaser is

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greater than two thousand five hundred dollars ($2,500), sales and/or use tax is due on the entire

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price charged for the items. The sale price is not reduced by the threshold amount.

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     (e) Sales tax may only be refunded to a retail customer on returns within ninety (90) days

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of the sale.

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     (f) Customers who are erroneously charged sales tax by a vendor for an exempt purchase

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should take his/her tax paid receipt to the vendor to obtain a refund. If the vendor has remitted the

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erroneously collected tax to the division of taxation, the vendor may file an application for

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abatement of the erroneously collected tax within three (3) years upon satisfactory evidence that

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the vendor has credited or refunded the tax to the purchaser.

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     (g) All Rhode Island businesses normally making sales of alcoholic beverages to

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individuals for personal use and not for consumption on the premises where the sale is made and

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that are open during the sales tax holiday must participate in the sales tax holiday.

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     (h) Notwithstanding any provisions of the general laws to the contrary, including, but not

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limited to, any prohibition on advertising, merchants shall be able to advertise and promote the

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sales tax holiday periods.

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     SECTION 2. This act shall take effect upon passage.

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LC00912

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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

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     This act would provide for several periods where there would be a sales and use tax

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holiday on the purchase of alcoholic beverages which are not to be consumed on the premises of

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the place of purchase.

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     This act would take effect upon passage.

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LC00912

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