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:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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published by the Rhode Island state police.

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

 

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

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

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

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and the groups who shall receive said funds.

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

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section.

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

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

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

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

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card at the time of purchase.

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

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

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

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

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

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

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

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to the general assembly which shall include:

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

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tax; and

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

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

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

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

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

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

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

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enforcement officers.

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     This act would take effect upon passage.

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