2014 -- S 2318

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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: Senators Goldin, Metts, DaPonte, Pichardo, and Miller

     Date Introduced: February 12, 2014

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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

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

     44-18-18.2. Firearms and ammunition tax. – (a) There is hereby levied and imposed,

upon every purchaser of a firearm and/or ammunition, in addition to all other taxes and fees now

imposed by law, a supplemental firearms and ammunition tax upon each and every firearm and/or

any ammunition sold within the state of Rhode Island by any licensed dealer of firearms and/or

ammunition, at a rate of ten percent (10%) of the gross receipts. The tax shall be paid to the tax

administrator by the licensed dealer at the time and in the manner provided.

     (b) All sums received by the division of taxation under this section as taxes, penalties or

forfeitures, interest, costs of suit and fines shall be distributed at least quarterly, credited and paid

by the state treasurer into a special fund designated for allocation to the various police

departments throughout the state. If a city or town does not have a municipal police department,

disbursements pursuant to this section shall be made to the highest ranking municipal official.

     (c) Allocation of the funds to the various police departments or city or town officials

pursuant to subsection (b) shall be made yearly and based proportionally on the number of "total

offenses" occurring in said city or town as set forth in the prior year's uniform crime report

published by the Rhode Island state police.

     (d) Any money distributed to the various police departments or city or town officials shall

be used only for grants to nonprofit organizations whose mission includes a commitment to the

reduction of crime and violence in the community. The local police chief and/or highest ranking

municipal official of each city or town shall have discretion as to the amount of money allocated

and the groups who shall receive said funds.

     (e) The following groups and/or individuals shall be exempt from the tax imposed by this

section.

     (1) Any veterans' organization that receives firearms directly from the armed forces of the

United States for use solely at public or private ceremonies with blank ammunition; and

     (2) Any active, sworn law enforcement officer of any state, city or town purchasing

firearms for use in the course of his/her business presenting a valid law enforcement identification

card at the time of purchase.

     (f) Each licensed dealer shall maintain accurate and complete records of each and every

transaction involving the sale of firearms and ammunition. These records shall be made available

for review upon request to the tax administrator and/or the department of revenue.

     (g) This firearms and ammunition tax shall be administered by the division of taxation

and/or the department of revenue and unless provided to the contrary in this chapter, all of the

administration, collection, and other provisions of chapters 18 and 19 of title 44 apply.

     (h) The administrator of the division of taxation shall prepare and submit an annual report

to the general assembly which shall include:

     (1) The amount of funds distributed by way of grant to each municipality pursuant to this

tax; and

     (2) The initiative for which the grant was distributed.

     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 levy and impose a ten percent (10%) supplemental firearms and

ammunition tax upon the purchase and/or sale of any firearm and/or ammunition in this state with

the funds collected to be distributed to the police departments of the cities and towns or to the

highest ranking municipal official if there is no municipal police department, for allocation to

nonprofit organizations whose mission includes a commitment to the reduction of crime and

violence. Tax exemptions would be provided to certain veterans' organizations and law

enforcement officers.

     This act would take effect upon passage.

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