2016 -- S 2273

========

LC004383

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

____________

A N   A C T

RELATING TO TAXATION - TAX AMNESTY

     Introduced By: Senators Pagliarini, Algiere, DiPalma, Sosnowski, and DaPonte

     Date Introduced: February 09, 2016

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 44-6.1-1, 44-6.1-2, 44-6.1-3, 44-6.1-4, 44-6.1-5, 44-6.1-6, 44-6.1-

7 and 44-6.1-8 of the General Laws in Chapter 44-6.1 entitled "Tax Amnesty" are hereby

repealed.

     44-6.1-1. Short title. -- This chapter shall be known as the "Rhode Island Tax Amnesty

Act".

     44-6.1-2. Definitions. -- As used in this chapter, the following terms have the meaning

ascribed to them in this section, except when the context clearly indicates a different meaning:

      (1) "Taxable period" means any period for which a tax return is required by law to be

filed with the tax administrator and for which no return has been previously filed or for which an

erroneous return has been filed.

      (2) "Taxpayer" means any person, corporation, or other entity subject to any tax imposed

by any law of the state of Rhode Island and payable to the state of Rhode Island and collected by

the tax administrator.

     44-6.1-3. Establishment of tax amnesty. -- (a) The tax administrator shall establish a tax

amnesty program for all taxpayers owing any tax imposed by reason of or pursuant to

authorization by any law of the state of Rhode Island and collected by the tax administrator.

Amnesty tax return forms shall be prepared by the tax administrator and shall provide for

specification by the taxpayer of the tax and the taxable period for which amnesty is being sought

by the taxpayer.

      (b) The amnesty program shall be conducted for a ninety (90) day period established by

the tax administrator in the state fiscal year 1986-1987. The amnesty program shall provide that

upon written application by any taxpayer and payment by the taxpayer of all taxes and interest

due from the taxpayer to the state of Rhode Island for any taxable period ending prior to April 1,

1986, the tax administrator shall not seek to collect any penalties which may be applicable and

shall not seek civil or criminal prosecution for any taxpayer for the taxable period for which

amnesty has been granted. Amnesty shall be granted only to those taxpayers applying for amnesty

during the amnesty period, who have paid the tax and interest due upon filing the amnesty tax

return, or who have entered into an installment payment agreement for reasons of financial

hardship upon the terms and conditions set by the tax administrator. In the case of the failure of a

taxpayer to pay any installment at the time the installment payment is due under the agreement,

the agreement shall cease to be effective and the balance of the amounts required to be paid under

this agreement shall be due immediately. Failure to pay all amounts due to the state of Rhode

Island shall invalidate any amnesty granted pursuant to this chapter. Amnesty shall be granted for

only the taxable period specified in the application and only if all amnesty conditions are satisfied

by the taxpayer.

      (c) Amnesty shall not be granted to taxpayers who are a party to any criminal

investigations or to any civil or criminal litigation which is pending in any court of the United

States or the state of Rhode Island for nonpayment, delinquency, or fraud in relation to any state

tax imposed by any law of the state and collected by the tax administrator.

     44-6.1-4. Interest under tax amnesty. -- Notwithstanding any general or specific statute

to the contrary, interest on any taxes paid for periods covered under the amnesty provisions of

this chapter shall be computed at the rate of eleven and one-half percent (11.50%) annually from

due date to time of payment.

     44-6.1-5. Amnesty provisions not applicable. -- The provisions of § 44-6.1-3 shall not

apply to the underpayment of any tax imposed by any law for the state of Rhode Island, payable

to the state of Rhode Island for any taxable period to the extent that before the written application

for amnesty is filed:

      (1) The taxable period for which a written application for amnesty has been filed is

currently under audit by the tax administrator; or

      (2) A notice of deficiency or bill with respect to the underpayment was mailed to the

taxpayer.

     44-6.1-6. Appropriation. -- There is appropriated, out of any money in the treasury not

otherwise appropriated for the fiscal year 1986-1987, the sum of one hundred thousand dollars

LC004383 - Page 2 of 10

($100,000) to the division of taxation to carry out the purposes of this chapter and the state

controller is authorized and directed to draw his or her orders upon the general treasurer for the

payment of the sum or so much of the sum as may be required from time to time upon receipt by

him or her of properly authenticated vouchers.

     44-6.1-7. Implementation. -- Notwithstanding any provision of law to the contrary, the

tax administrator may do all things necessary in order to provide for the timely implementation of

this chapter, including but not limited to procurement of printing and other services and

expenditure of appropriated funds as provided for in § 44-6.1-6.

     44-6.1-8. Disposition of monies -- Rules and regulations. -- (a) All monies collected

pursuant to any tax imposed by the state of Rhode Island under the provisions of this chapter shall

be accounted for separately and paid into the general fund.

      (b) The tax administrator shall promulgate rules and regulations as are necessary to

implement the provisions of this chapter.

     SECTION 2. Sections 44-6.2-1, 44-6.2-2, 44-6.2-3, 44-6.2-4, 44-6.2-5, 44-6.2-6 and 44-

6.2-7 of the General Laws in Chapter 44-6.2 entitled "Rhode Island Tax Amnesty Act" are hereby

repealed.

     44-6.2-1. Short title. -- This chapter shall be known as the "1996 Rhode Island Tax

Amnesty Act".

     44-6.2-2. Definitions. -- As used in this chapter, the following terms have the meaning

ascribed to them in this section, except when the context clearly indicates a different meaning:

      (1) "Taxable period" means any period for which a tax return is required by law to be

filed with the tax administrator.

      (2) "Taxpayer" means any person, corporation, or other entity subject to any tax imposed

by any law of the state of Rhode Island and payable to the state of Rhode Island and collected by

the tax administrator.

     44-6.2-3. Establishment of tax amnesty. -- (a) The tax administrator shall establish a tax

amnesty program for all taxpayers owing any tax imposed by reason of or pursuant to

authorization by any law of the state of Rhode Island and collected by the tax administrator.

Amnesty tax return forms shall be prepared by the tax administrator and shall provide for

specificity by the taxpayer of the tax and the taxable period for which amnesty is being sought by

the taxpayer.

      (b) The amnesty program shall be conducted for a seventy-five (75) day period

established by the tax administrator in the state fiscal year 1995-1996. The amnesty program shall

provide that upon written application by any taxpayer and payment by the taxpayer of all taxes

LC004383 - Page 3 of 10

and interest due from the taxpayer to the state of Rhode Island for any taxable period ending prior

to December 31, 1995, the tax administrator shall not seek civil or criminal prosecution for any

taxpayer for the taxable period for which amnesty has been granted. Amnesty shall be granted

only to those taxpayers applying for amnesty during the amnesty period, which have paid the tax

and interest due upon filing the amnesty tax return, or who has entered into an installment

payment agreement for reasons of financial hardship upon the terms and conditions set by the tax

administrator. In the case of the failure of a taxpayer to pay any installment at the time the

installment payment is due under the agreement, the agreement shall cease to be effective and the

balance of the amounts required to be paid under this agreement shall be due immediately. Failure

to pay all amounts due to the state of Rhode Island shall invalidate any amnesty granted pursuant

to this chapter. Amnesty shall be granted for only the taxable period specified in the application

and only if all amnesty conditions are satisfied by the taxpayer.

      (c) The provisions of this section shall include a taxable period for which a notice of

deficiency determination or bill has been sent to the taxpayer and/or a taxable period in which an

audit is completed but has not yet been billed.

      (d) Amnesty shall not be granted to taxpayers who are a party to any criminal

investigation or to any civil or criminal litigation which is pending in any court of the United

States or the state of Rhode Island for fraud in relation to any state tax imposed by any law of the

state and collected by the tax administrator.

     44-6.2-4. Interest under tax amnesty. -- Notwithstanding any general or specific statute

to the contrary, interest on any taxes paid for periods covered under the amnesty provisions of

this chapter shall be computed at the rate of twelve percent (12%) annually from due to time of

payment.

     44-6.2-5. Implementation. -- Notwithstanding any provision of law to the contrary, the

tax administrator may do all things necessary in order to provide for the timely implementation of

this chapter, including but not limited to procurement of printing and other services and

expenditures of appropriated funds.

     44-6.2-6. Disposition of monies -- Rules and regulations. -- (a) All monies collected

pursuant to any tax imposed by the state of Rhode Island under the provisions of this chapter shall

be accounted for separately and paid into the general fund.

      (b) The tax administrator shall promulgate rules and regulations as are necessary to

implement the provisions of this chapter.

     44-6.2-7. Analysis of amnesty program by tax administrator. -- The tax administrator

shall provide an analysis of the amnesty program to the chairpersons of the house finance

LC004383 - Page 4 of 10

committee and senate finance committee with copies to the members of the revenue estimating

conference by September 1, 1996. The report shall include an analysis of revenues received by

tax source, distinguishing between the tax collected and interest collected for each source. In

addition, the report shall further delineate the amounts that are new revenues from that already

included in the general revenue receivable taxes defined under generally accepted accounting

principles and the state's audited financial statements. The auditor general shall include review of

the analysis as part of the activities involved in preparation of the combined annual financial

report for fiscal year 1996.

     SECTION 3. Sections 44-6.3-1, 44-6.3-2, 44-6.3-3, 44-6.3-4, 44-6.3-5, 44-6.3-6, 44-6.3-

7, 44-6.3-8 and 44-6.3-9 of the General Laws in Chapter 44-6.3 entitled "2006 Rhode Island Tax

Amnesty Act" are hereby repealed.

     44-6.3-1. Short title. -- This chapter shall be known as the "2006 Rhode Island Tax

Amnesty Act".

     44-6.3-2. Definitions. -- As used in this chapter, the following terms have the meaning

ascribed to them in this section, except when the context clearly indicates a different meaning:

      (1) "Taxable period" means any period for which a tax return is required by law to be

filed with the tax administrator;

      (2) "Taxpayer" means any person, corporation, or other entity subject to any tax imposed

by any law of the state of Rhode Island and payable to the state of Rhode Island and collected by

the tax administrator.

     44-6.3-3. Establishment of tax amnesty. -- (a) The tax administrator shall establish a tax

amnesty program for all taxpayers owing any tax imposed by reason of or pursuant to

authorization by any law of the state of Rhode Island and collected by the tax administrator.

Amnesty tax return forms shall be prepared by the tax administrator and shall provide that the

taxpayer clearly specify the tax due and the taxable period for which amnesty is being sought by

the taxpayer.

      (b) The amnesty program shall be conducted for a seventy-five (75) day period ending

on September 30, 2006. The amnesty program shall provide that, upon written application by a

taxpayer and payment by the taxpayer of all taxes and interest due from the taxpayer to the state

of Rhode Island for any taxable period ending prior to December 31, 2005, the tax administrator

shall not seek to collect any penalties which may be applicable and shall not seek the civil or

criminal prosecution of any taxpayer for the taxable period for which amnesty has been granted.

Amnesty shall be granted only to those taxpayers applying for amnesty during the amnesty period

who have paid the tax and interest due upon filing the amnesty tax return, or who have entered

LC004383 - Page 5 of 10

into an installment payment agreement for reasons of financial hardship and upon terms and

conditions set by the tax administrator. In the case of the failure of a taxpayer to pay any

installment due under the agreement, such an agreement shall cease to be effective and the

balance of the amounts required to be paid thereunder shall be due immediately. Amnesty shall be

granted for only the taxable period specified in the application and only if all amnesty conditions

are satisfied by the taxpayer.

      (c) The provisions of this section shall include a taxable period for which a bill or notice

of deficiency determination has been sent to the taxpayer and a taxable period in which an audit

has been completed but has not yet been billed.

      (d) Amnesty shall not be granted to taxpayers who are under any criminal investigation

or are a party to any civil or criminal proceeding, pending in any court of the United States or the

state of Rhode Island, for fraud in relation to any state tax imposed by the law of the state and

collected by the tax administrator.

     44-6.3-4. Interest under tax amnesty. -- Notwithstanding any general or specific statute

to the contrary, interest on any taxes paid for periods covered under the amnesty provisions of

this chapter shall be computed at the rate of twelve percent (12%) annually from the due date to

the time of payment.

     44-6.3-5. Appropriation. -- There is hereby appropriated, out of any money in the

treasury not otherwise appropriated for the 2007 fiscal year, the sum of two hundred thousand

dollars ($200,000) to the division of taxation to carry out the purposes of this chapter. The state

controller is hereby authorized and directed to draw his or her orders upon the general treasurer

for the payment of the sum or so much thereof as may be required from time to time and upon

receipt by him of properly authenticated vouchers.

     44-6.3-6. Implementation. -- Notwithstanding any provision of law to the contrary, the

tax administrator may do all things necessary in order to provide for the timely implementation of

this chapter, including but not limited to procurement of printing and other services and

expenditure of appropriated funds as provided for in § 44-6.3-5.

     44-6.3-7. Disposition of monies. -- (a) Except as provided in subsection (b) within, all

monies collected pursuant to any tax imposed by the state of Rhode Island under the provisions of

this chapter shall be accounted for separately and paid into the general fund.

      (b) Monies collected for the establishment of the TDI Reserve Fund (§ 28-39-7), the

Employment Security Fund (§ 28-42-18),the Employment Security Interest Fund (§ 28-42-75),

the Job Development Fund (§ 28-42-83), and the Employment Security Reemployment Fund (§

28-42-87) shall be deposited in said respective funds.

LC004383 - Page 6 of 10

     44-6.3-8. Analysis of amnesty program by tax administrator. -- The tax administrator

shall provide an analysis of the amnesty program to the chairpersons of the house finance

committee and senate finance committee, with copies to the members of the revenue estimating

conference, by November 1, 2006. The report shall include an analysis of revenues received by

tax source, distinguishing between the tax collected and interest collected for each source. In

addition, the report shall further identify the amounts that are new revenues from those already

included in the general revenue receivable taxes defined under generally accepted accounting

principles and the state's audited financial statements. The auditor general shall include a review

of this analysis as part of the activities involved in preparation of the combined annual financial

report for fiscal year 2007.

     44-6.3-9. Rules and regulations. -- The tax administrator shall promulgate such rules

and regulations as are necessary to implement the provisions of this chapter.

     SECTION 4. Sections 44-6.4-1, 44-6.4-2, 44-6.4-3, 44-6.4-4, 44-6.4-5, 44-6.4-6, 44-6.4-

7, 44-6.4-8 and 44-6.4-9 of the General Laws in Chapter 44-6.4 entitled "Rhode Island Tax

Amnesty Act" are hereby repealed.

     44-6.4-1. Short title. -- This chapter shall be known as the "2012 Rhode Island Tax

Amnesty Act".

     44-6.4-2. Definitions. -- As used in this chapter, the following terms have the meaning

ascribed to them in this section, except when the context clearly indicates a different meaning:

      (1) "Taxable period" means any period for which a tax return is required by law to be

filed with the tax administrator;

      (2) "Taxpayer" means any person, corporation, or other entity subject to any tax imposed

by any law of the state of Rhode Island and payable to the state of Rhode Island and collected by

the tax administrator.

     44-6.4-3. Establishment of tax amnesty. -- (a) The tax administrator shall establish a tax

amnesty program for all taxpayers owing any tax imposed by reason of or pursuant to

authorization by any law of the state of Rhode Island and collected by the tax administrator.

Amnesty tax return forms shall be prepared by the tax administrator and shall provide that the

taxpayer clearly specify the tax due and the taxable period for which amnesty is being sought by

the taxpayer.

      (b) The amnesty program shall be conducted for a seventy-five (75) day period ending

on November 15, 2012. The amnesty program shall provide that, upon written application by a

taxpayer and payment by the taxpayer of all taxes and interest due from the taxpayer to the state

of Rhode Island for any taxable period ending on or prior to December 31, 2011, the tax

LC004383 - Page 7 of 10

administrator shall not seek to collect any penalties which may be applicable and shall not seek

the civil or criminal prosecution of any taxpayer for the taxable period for which amnesty has

been granted. Amnesty shall be granted only to those taxpayers applying for amnesty during the

amnesty period who have paid the tax and interest due upon filing the amnesty tax return, or who

have entered into an installment payment agreement for reasons of financial hardship and upon

terms and conditions set by the tax administrator. In the case of the failure of a taxpayer to pay

any installment due under the agreement, such an agreement shall cease to be effective and the

balance of the amounts required to be paid thereunder shall be due immediately. Amnesty shall be

granted for only the taxable period specified in the application and only if all amnesty conditions

are satisfied by the taxpayer.

      (c) The provisions of this section shall include a taxable period for which a bill or notice

of deficiency determination has been sent to the taxpayer and a taxable period in which an audit

has been completed but has not yet been billed.

      (d) Amnesty shall not be granted to taxpayers who are under any criminal investigation

or are a party to any civil or criminal proceeding, pending in any court of the United States or the

state of Rhode Island, for fraud in relation to any state tax imposed by the law of the state and

collected by the tax administrator.

     44-6.4-4. Interest under tax amnesty. -- Notwithstanding any provision of law to the

contrary, interest on any taxes paid for periods covered under the amnesty provisions of this

chapter shall be computed at the rate imposed under § 44-1-7, reduced by twenty five percent

(25%).

     44-6.4-5. Appropriation. -- There is hereby appropriated, out of any money in the

treasury not otherwise appropriated for the 2013 fiscal year, the sum of three hundred thousand

dollars ($300,000) to the division of taxation to carry out the purposes of this chapter. The state

controller is hereby authorized and directed to draw his or her orders upon the general treasurer

for the payment of the sum or so much thereof as may be required from time to time and upon

receipt by him of properly authenticated vouchers.

     44-6.4-6. Implementation. -- Notwithstanding any provision of law to the contrary, the

tax administrator may do all things necessary in order to provide for the timely implementation of

this chapter, including, but not limited to, procurement of printing and other services and

expenditure of appropriated funds as provided for in § 44-6.4-5.

     44-6.4-7. Disposition of monies. -- (a) Except as provided in subsection (b) within, all

monies collected pursuant to any tax imposed by the state of Rhode Island under the provisions of

this chapter shall be accounted for separately and paid into the general fund.

LC004383 - Page 8 of 10

      (b) Monies collected for the establishment of the TDI Reserve Fund (§ 28-39-7), the

Employment Security Fund (§ 28-42-18), the Employment Security Interest Fund (§ 28-42-75),

the Job Development Fund (§ 28-42-83), and the Employment Security Reemployment Fund (§

28-42-87) shall be deposited in said respective funds.

     44-6.4-8. Analysis of amnesty program by tax administrator. -- The tax administrator

shall provide an analysis of the amnesty program to the chairpersons of the house finance

committee and senate finance committee, with copies to the members of the revenue estimating

conference, by January 1, 2013. The report shall include an analysis of revenues received by tax

source, distinguishing between the tax collected and interest collected for each source. In

addition, the report shall further identify the amounts that are new revenues from those already

included in the general revenue receivable taxes, defined under generally accepted accounting

principles and the state's audited financial statements.

     44-6.4-9. Rules and regulations. -- The tax administrator may promulgate such rules and

regulations as are necessary to implement the provisions of this chapter.

     SECTION 5. This act shall take effect upon passage.

========

LC004383

========

LC004383 - Page 9 of 10

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION - TAX AMNESTY

***

     This act would repeal the Rhode Island Tax Amnesty Acts of 1986, 1996, 2006 and 2012.

     This act would take effect upon passage.

========

LC004383

========

LC004383 - Page 10 of 10