2016 -- H 7230

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LC003557

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO TAXATION

     Introduced By: Representatives Filippi, Blazejewski, Solomon, Reilly, and Costa

     Date Introduced: January 20, 2016

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 44-18-15 of the General Laws in Chapter 44-18 entitled "Sales and

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

     44-18-15. "Retailer" defined. -- (a) "Retailer" includes:

      (1) Every person engaged in the business of making sales at retail including prewritten

computer software delivered electronically or by load and leave, sales of services as defined in §

44-18-7.3, and sales at auction of tangible personal property owned by the person or others.

      (2) Every person making sales of tangible personal property including prewritten

computer software delivered electronically or by load and leave, or sales of services as defined in

§ 44-18-7.3, through an independent contractor or other representative, if the retailer enters into

an agreement with a resident of this state, under which the resident, for a commission or other

consideration, directly or indirectly refers potential customers, whether to the retailer, excluding

by a link on an Internet website or otherwise, to the retailer, provided the cumulative gross

receipts from sales by the retailer to customers in the state who are referred to the retailer by all

residents with this type of an agreement with the retailer, is in excess of five thousand dollars

($5,000) during the preceding four (4) quarterly periods ending on the last day of March, June,

September and December. Such retailer shall be presumed to be soliciting business through such

independent contractor or other representative, which presumption may be rebutted by proof that

the resident with whom the retailer has an agreement did not engage in any solicitation in the

state on behalf of the retailer that would satisfy the nexus requirement of the United States

Constitution during such four (4) quarterly periods.

      (3) Every person engaged in the business of making sales for storage, use, or other

consumption of: (1) tangible personal property, (ii) sales at auction of tangible personal property

owned by the person or others, prewritten computer software delivered electronically or by load

and leave, and (iv) services as defined in § 44-18-7.3.

      (4) A person conducting a horse race meeting with respect to horses, which are claimed

during the meeting.

      (5) Every person engaged in the business of renting any living quarters in any hotel as

defined in § 42-63.1-2, rooming house, or tourist camp.

      (6) Every person maintaining a business within or outside of this state who engages in

the regular or systematic solicitation of sales of tangible personal property, prewritten computer

software delivered electronically or by load and leave:

      (i) Advertising in newspapers, magazines, and other periodicals published in this state,

sold over the counter in this state or sold by subscription to residents of this state, billboards

located in this state, airborne advertising messages produced or transported in the airspace above

this state, display cards and posters on common carriers or any other means of public conveyance

incorporated or operated primarily in this state, brochures, catalogs, circulars, coupons,

pamphlets, samples, and similar advertising material mailed to, or distributed within this state to

residents of this state;

      (ii) Telephone;

      (iii) Computer assisted shopping networks; and

      (iv) Television, radio or any other electronic media, which is intended to be broadcast to

consumers located in this state.

      (b) When the tax administrator determines that it is necessary for the proper

administration of chapters 18 and 19 of this title to regard any salespersons, representatives,

truckers, peddlers, or canvassers as the agents of the dealers, distributors, supervisors, employers,

or persons under whom they operate or from whom they obtain the tangible personal property

sold by them, irrespective of whether they are making sales on their own behalf or on behalf of

the dealers, distributors, supervisors, or employers, the tax administrator may so regard them and

may regard the dealers, distributors, supervisors, or employers as retailers for purposes of

chapters 18 and 19 of this title.

     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

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     This act would clarify the statutory language defining retailers that enter into agreements

with residents who refer potential customers to retailers by links to internet sites, as it relates to

the computation of sales and use taxes.

     This act would take effect upon passage.

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LC003557

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