2012 -- S 2241 SUBSTITUTE A

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LC00482/SUB A

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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 -- EXCISE ON MOTOR VEHICLES AND TRAILERS

     Introduced By: Senator William A. Walaska

     Date Introduced: January 26, 2012

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 44-18-40 of the General Laws in Chapter 44-18 entitled "Sales and

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Use Taxes - Liability and Computation" is hereby amended to read as follows:

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     44-18-40. Exemption for buses, trucks and trailers in interstate commerce. – (a)

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Notwithstanding any provision of the general laws to the contrary, the purchase, rental or lease of

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a bus, truck, or trailer by a bus or trucking company is not subject to the provisions of the sales

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and use taxes imposed by this chapter on the condition that the bus, truck and/or trailer is utilized

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exclusively in interstate commerce.

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     (b) Notwithstanding any provision of the law or regulation to the contrary, the operation

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of a bus by a bus company in interstate commerce shall not be subject to the provisions of the

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sales and use tax imposed by this chapter, on the condition that the bus is used eighty percent

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(80%) or more of the time in interstate commerce and provided that the bus company shall

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provide a properly executed affidavit attesting to the fact that the bus is used no less than eighty

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percent (80%) of the time in interstate commerce.

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     SECTION 2. Section 44-34-4.1 of the General Laws in Chapter 44-34 entitled "Excise on

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Motor Vehicles and Trailers" is hereby amended to read as follows:

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     44-34-4.1. Exemptions for buses, trucks and trailers in interstate commerce. –

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      (a) Notwithstanding any provision of the general laws to the contrary, the operation of a

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bus, truck, or trailer by a bus or trucking company in interstate commerce shall not be subject to

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the provisions of the excise tax imposed by this chapter, on the condition that the bus, truck

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and/or trailer is utilized exclusively in interstate commerce.

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     (b) Notwithstanding any provision of the law or regulation to the contrary, the operation

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of a bus by a bus company in interstate commerce shall not be subject to the provisions of the

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excise tax imposed by this chapter, on the condition that the bus is used eighty percent (80%) or

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more of the time in interstate commerce and provided that the bus company shall provide a

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properly executed affidavit attesting to the fact that the bus is used no less than eighty percent

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(80%) of the time in interstate commerce.

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     SECTION 3. This act shall take effect upon passage.

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LC00482/SUB A

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION -- EXCISE ON MOTOR VEHICLES AND TRAILERS

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     This act would provide that buses, trucks and trailers operated by a bus company or truck

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company would not be subject to an excise or sales and use tax on the condition that the bus,

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truck and/or trailer is utilized for more than eighty percent (80%) of the time in interstate

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commerce.

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     This act would take effect upon passage.

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LC00482/SUB A

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