2016 -- S 2273

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LC004383

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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 - 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:

1

     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-

2

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

3

repealed.

4

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

5

Act".

6

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

7

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

8

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

9

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

10

erroneous return has been filed.

11

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

12

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

13

the tax administrator.

14

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

15

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

16

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

17

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

18

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

19

by the taxpayer.

 

1

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

2

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

3

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

4

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

5

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

6

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

7

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

8

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

9

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

10

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

11

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

12

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

13

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

14

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

15

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

16

by the taxpayer.

17

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

18

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

19

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

20

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

21

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

22

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

23

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

24

due date to time of payment.

25

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

26

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

27

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

28

for amnesty is filed:

29

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

30

currently under audit by the tax administrator; or

31

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

32

taxpayer.

33

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

34

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

 

LC004383 - Page 2 of 10

1

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

2

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

3

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

4

him or her of properly authenticated vouchers.

5

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

6

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

7

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

8

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

9

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

10

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

11

be accounted for separately and paid into the general fund.

12

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

13

implement the provisions of this chapter.

14

     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-

15

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

16

repealed.

17

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

18

Amnesty Act".

19

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

20

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

21

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

22

filed with the tax administrator.

23

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

24

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

25

the tax administrator.

26

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

27

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

28

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

29

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

30

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

31

the taxpayer.

32

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

33

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

34

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

 

LC004383 - Page 3 of 10

1

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

2

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

3

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

4

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

5

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

6

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

7

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

8

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

9

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

10

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

11

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

12

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

13

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

14

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

15

audit is completed but has not yet been billed.

16

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

17

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

18

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

19

state and collected by the tax administrator.

20

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

21

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

22

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

23

payment.

24

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

25

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

26

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

27

expenditures of appropriated funds.

28

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

29

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

30

be accounted for separately and paid into the general fund.

31

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

32

implement the provisions of this chapter.

33

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

34

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

 

LC004383 - Page 4 of 10

1

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

2

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

3

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

4

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

5

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

6

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

7

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

8

report for fiscal year 1996.

9

     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-

10

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

11

Amnesty Act" are hereby repealed.

12

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

13

Amnesty Act".

14

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

15

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

16

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

17

filed with the tax administrator;

18

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

19

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

20

the tax administrator.

21

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

22

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

23

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

24

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

25

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

26

the taxpayer.

27

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

28

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

29

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

30

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

31

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

32

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

33

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

34

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

 

LC004383 - Page 5 of 10

1

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

2

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

3

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

4

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

5

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

6

are satisfied by the taxpayer.

7

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

8

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

9

has been completed but has not yet been billed.

10

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

11

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

12

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

13

collected by the tax administrator.

14

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

15

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

16

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

17

the time of payment.

18

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

19

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

20

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

21

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

22

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

23

receipt by him of properly authenticated vouchers.

24

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

25

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

26

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

27

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

28

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

29

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

30

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

31

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

32

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

33

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

34

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

 

LC004383 - Page 6 of 10

1

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

2

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

3

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

4

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

5

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

6

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

7

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

8

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

9

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

10

report for fiscal year 2007.

11

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

12

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

13

     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-

14

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

15

Amnesty Act" are hereby repealed.

16

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

17

Amnesty Act".

18

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

19

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

20

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

21

filed with the tax administrator;

22

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

23

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

24

the tax administrator.

25

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

26

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

27

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

28

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

29

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

30

the taxpayer.

31

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

32

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

33

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

34

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

 

LC004383 - Page 7 of 10

1

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

2

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

3

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

4

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

5

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

6

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

7

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

8

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

9

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

10

are satisfied by the taxpayer.

11

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

12

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

13

has been completed but has not yet been billed.

14

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

15

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

16

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

17

collected by the tax administrator.

18

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

19

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

20

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

21

(25%).

22

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

23

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

24

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

25

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

26

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

27

receipt by him of properly authenticated vouchers.

28

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

29

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

30

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

31

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

32

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

33

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

34

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

 

LC004383 - Page 8 of 10

1

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

2

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

3

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

4

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

5

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

6

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

7

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

8

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

9

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

10

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

11

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

12

principles and the state's audited financial statements.

13

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

14

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

15

     SECTION 5. This act shall take effect upon passage.

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LC004383

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION - TAX AMNESTY

***

1

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

2

     This act would take effect upon passage.

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LC004383

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