2015 -- H 5557

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO TAXATION -- SALES AND USE TAXES - LIABILITY AND

COMPUTATION

     Introduced By: Representatives Marcello, Serpa, Nunes, Jacquard, and O'Brien

     Date Introduced: February 25, 2015

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 44-18-12.1 of the General Laws in Chapter 44-18 entitled "Sales

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

     44-18-12.1. "Additional measure subject to tax". -- Also included in the measure

subject to tax under this chapter is the total amount charged for the furnishing or distributing of

electricity, natural gas, artificial gas, steam, refrigeration, water, telecommunications, telegraph,

cable, and radio message service, community antenna television, subscription television, and

cable television service; provided, that the measure of tax in regard to telecommunications service

is the total consideration received for the service as defined in § 44-18-7(9); provided, that in

order to prevent multistate taxation of all telecommunications service, any taxpayer is allowed a

credit or refund of sales tax upon presenting proof that a tax has been paid to another state to

which the tax is properly due for the identical service taxed under this chapter.; provided, further,

that for taxpayers, that who are a commercial business, the rate of tax imposed on the services

previously enumerated in this section shall be reduced according to the following schedule:

     (1) In the fiscal year July 1, 2015 to June 30, 2016, the rate shall be three and one-half

percent (3.5%);

     (2) In the fiscal year July 1, 2016 to June 30, 2017 the rate shall be two and one-half

percent (2.5%);

     (3) On and after July 1, 2017 there shall be no tax.

     Furthermore, included in the measure of tax is the total amount charged for the rental of

living quarters in any hotel, rooming house, or tourist camp.

     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 reduce and then eliminate the sales tax on utility services to businesses.

     This act would take effect upon passage.

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