2018 -- H 7217

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LC003279

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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A N   A C T

RELATING TO TAXATION - SALES AND USE TAXES - LIABILITY AND

COMPUTATION

     Introduced By: Representatives Canario, Edwards, Donovan, Fellela, and Azzinaro

     Date Introduced: January 18, 2018

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 44-18 of the General Laws entitled "Sales and Use Taxes –

Liability and Computation" is hereby amended by adding thereto the following section:

     44-18-18.2. Annual Sales Tax Holiday.

     (a) Notwithstanding any general or public law to the contrary, for up to two (2) dates to

be determined by the director of the department of revenue (the "director"), an excise tax shall not

be imposed upon nonbusiness sales at retail of tangible personal property. For purposes of this

section, tangible personal property shall not include telecommunications, tobacco products, gas,

steam, oil, electricity, motor vehicles, motorboats, meals or a single item the price of which is in

excess of two thousand five hundred dollars ($2,500).

     (b) Notwithstanding any general or public law to the contrary, for dates to be determined

by the director, a vendor shall not add to the sales price, or collect from a nonbusiness purchaser,

an excise upon sales at retail of tangible personal property. The director shall not require a

vendor to collect and pay excise upon sales at retail of tangible personal property purchased on

such dates. An excise erroneously or improperly collected during such dates shall be remitted to

the department of revenue.

     This section shall not apply to the sale of telecommunications, tobacco products, gas,

steam, oil, electricity, motor vehicles, motorboats, meals or a single item the price of which is in

excess of two thousand five hundred dollars ($2,500).

     (c) Reporting requirements imposed upon vendors of tangible personal property, by law

or by regulation, including, but not limited to, the requirements for filing returns required

pursuant to the general laws, shall remain in effect for sales for the dates determined by the

director pursuant to this section.

     (d) On or before December 31, 2018, the director shall certify to the comptroller the

amount of sales tax forgone, as well as new revenue raised from personal and corporate income

taxes and other sources pursuant to this section. The director shall file a report with the house

and senate finance committees detailing the distribution of revenues which would have been

deposited in each fund without this section.

     (e) The director shall issue instructions or forms, or promulgate rules or regulations, as

necessary for the implementation of this section.

     (f) Eligible sales at retail of tangible personal property under subsections (a) and (b) of

this section are restricted to those transactions occurring on the dates determined by the director

pursuant to this section. Transfer of possession of or payment in full for the property shall occur

on one of those days, and prior sales or layaway sales shall be ineligible.

     (g) This section shall expire on December 31, 2021.

     SECTION 2. This act shall take effect upon passage and shall expire on December 31,

2021.

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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 create a sales tax holiday up to two (2) dates each year, as established by

the director of the department of revenue. No excise or sales taxes would be collected on

nonbusiness sales of tangible personal property on these dates, with the exception of sales of

telecommunications, tobacco products, gas, steam, oil, electricity, motor vehicles, motorboats,

meals or a single item the price of which is in excess of two thousand five hundred dollars

($2,500).

     This act would take effect upon passage and would expire on December 31, 2021.

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