2016 -- H 7788 | |
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LC005116 | |
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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 - RHODE ISLAND SALES AND USE TAX REIMBURSEMENT | |
ACT | |
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Introduced By: Representatives Tobon, Amore, Carnevale, Shekarchi, and Marshall | |
Date Introduced: March 02, 2016 | |
Referred To: House Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Title 44 of the General Laws entitled "TAXATION" is hereby amended by |
2 | adding thereto the following chapter: |
3 | CHAPTER 19.1 |
4 | RHODE ISLAND SALES AND USE TAX REIMBURSEMENT ACT |
5 | 44-19.1-1. Short title. -- This chapter shall be known and may be cited as the "Rhode |
6 | Island Sales and Use Tax Reimbursement Act." |
7 | 44-19.1-2. Purpose. -- The purpose of this chapter is to provide partial relief to the |
8 | taxpayers of this state from the sales and use tax and to benefit education in the localities where |
9 | purchases subject to the sales and use tax are recorded. |
10 | 44-19.1-3. Reimbursement. -- (a) Whenever the projected revenue collected from the |
11 | sales and use tax is exceeded during any fiscal year, the tax administrator shall immediately |
12 | reduce the sales tax rate by one percent (1%) until the end of the fiscal year to encourage |
13 | taxpayers to make purchases within the state. |
14 | (b) Additionally, one percent (1%) of the amount collected in excess of the projected |
15 | revenue shall be distributed to the city or town where the purchase originated after the reduction |
16 | of the sales tax rate in subsection (a) of this section for the purpose of aid to the local public |
17 | education system. |
18 | 44-19.1-4. Statements, returns, and rules and regulations. -- Every business entity |
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1 | required to collect the sales and use tax pursuant to a sales tax permit issued by the division of |
2 | taxation shall render statements, make returns and comply with all rules and regulations as the tax |
3 | administrator, with the approval of the director of the department of revenue, may from time to |
4 | time prescribe. |
5 | SECTION 2. This act shall take effect upon passage and apply to fiscal year 2017 and |
6 | annually thereafter. |
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EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO TAXATION - RHODE ISLAND SALES AND USE TAX REIMBURSEMENT | |
ACT | |
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1 | This act would provide that in the event sales and use tax revenue exceeds projections, |
2 | then in such event the tax administrator shall reduce the sales tax rate by one percent (1%) until |
3 | the end of the fiscal year. This act would further provide that one percent (1%) of the sales and |
4 | use tax revenue collected in excess of projected revenue shall be distributed to the municipalities |
5 | after the aforementioned reduction for the purpose of aid to local school systems. |
6 | This act would take effect upon passage and would apply to fiscal year 2017 and annually |
7 | thereafter. |
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LC005116 | |
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