2014 -- H 7085

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LC003477

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO TAXATION - SALES AND USE TAXES - LIABILITY AND

COMPUTATION

     

     Introduced By: Representatives Ackerman, Mattiello, McNamara, Marcello, and

     Date Introduced: January 15, 2014

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 44-18-18 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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     44-18-18. Sales tax imposed. – (a) A tax is imposed upon sales at retail in this state

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including charges for rentals of living quarters in hotels as defined in section 42-63.1-2, rooming

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houses, or tourist camps, at the rate of six percent (6%) of the gross receipts of the retailer from

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the sales or rental charges; provided, that the tax imposed on charges for the rentals applies only

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to the first period of not exceeding thirty (30) consecutive calendar days of each rental; provided,

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further, that for the period commencing July 1, 1990, the tax rate is seven percent (7%). The tax is

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paid to the tax administrator by the retailer at the time and in the manner provided. Excluded from

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this tax are those living quarters in hotels, rooming houses, or tourist camps for which the

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occupant has a written lease for the living quarters which lease covers a rental period of twelve

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(12) months or more. In recognition of the work being performed by the Streamlined Sales and

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Use Tax Governing Board, upon passage any federal law which authorizes states to require

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remote sellers to collect and remit sales and use taxes, the rate imposed under section 44-18-18

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shall be reduced from seven percent (7%) to six and one-half percent (6.5%) six and one-quarter

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percent (6.25%). The six and one-half percent (6.5%) six and one-quarter percent (6.25%) rate

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shall take effect on the date that the state requires remote sellers to collect and remit sale and use

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taxes.

 

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     (b) The first twenty-five million dollars ($25,000,000) of revenue generated from the

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collection of Internet sales taxes each year pursuant to this section shall be dedicated to the Rhode

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Island highway maintenance account as set forth in § 39-18.1-4.

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     SECTION 2. This act shall take effect upon passage.

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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 that upon passage if any federal law authorizing a tax on Internet

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sales, the rate imposed would be six and one-quarter percent (6.25%). This act would further

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provide that the first twenty-five million dollars ($25,000,000) of revenue generated from Internet

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sales taxes each year would be dedicated to the Rhode Island highway maintenance account.

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     This act would take effect upon passage.

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