Article-005

=======

art.005/1

=======

ARTICLE 5

RELATING TO TAXES, REVENUES AND FEES

SECTION 1. Effective October 1, 2019, section 11-47-39 of the General Laws in Chapter

11-47 entitled "Weapons" is hereby amended to read as follows:

11-47-39. Issuance and conditions of dealer's license.

The duly constituted licensing authorities of any city, town, or political subdivision of this

state may grant licenses in form prescribed by the attorney general effective for not more than one

year from date of issue permitting the licensee to sell pistols and revolvers at retail within this state,

subject to the following conditions in addition to those specified in §§ 11-47-35 and 11-47-36, for

breach of any of which the license shall be forfeited and the licensee subject to punishment as

provided in this chapter:

(1) The business shall be carried on only in the building designated in the license.

(2) The license or a copy of it, certified by the issuing authority, shall be displayed on the

premises where it can easily be read.

(3) No pistol or revolver shall be sold in violation of any provision of this chapter, nor shall

a pistol or revolver be sold under any circumstances unless the purchaser is personally known to

the seller or shall present clear evidence of his or her identity.

(4) The fee for issuing the license shall be five dollars ($5.00). The fee charged for the

issuing of the license shall be applied for the use and benefit of the city or town.

(5) The licensee has demonstrated compliance with the division of taxation, department of

revenue, as determined by its tax administrator, carried out and defined by promulgated rules and

regulations issued by the division of taxation.

SECTION 2. Section 19-14-4 of the General Laws in Chapter 19-14 entitled "Licensed

Activities" is hereby amended to read as follows:

19-14-4. Annual fee.

(a) Each licensee shall pay an annual license fee as follows:

(1) Each small-loan lender license and each branch certificate, the sum of five hundred fifty

dollars ($550);

(2) Each loan-broker license and each branch certificate, the sum of five hundred fifty

dollars ($550);

(3) Each lender license and each branch certificate, the sum of one thousand one hundred

dollars ($1,100);

(4) Each sale of checks license, the sum of three hundred sixty dollars ($360);

(5) Each check cashing license, the sum of three hundred sixty dollars ($360);

(6) Each electronic money transfer license, the sum of three hundred sixty dollars ($360);

(7) Each registration to provide debt-management services, the sum of two hundred dollars

($200);

(8) Each mortgage-loan originator license, the sum of one four hundred dollars ($100 400);

and

(9) Each third-party loan-servicer license and each branch certificate, the sum of one

thousand one hundred dollars ($1,100).

(b) Any licensee who shall not pay the annual fee by December 31 of each year shall be

subject to a daily penalty of twenty-five dollars ($25) per day, subject to a maximum of seven

hundred fifty dollars ($750). The penalty shall be paid to the director to, and for the use of, the

state. The penalty may be waived for good cause by the director, or the director's designee, upon

written request.

SECTION 3. Section 19-14.9-12 of the General Laws in Chapter 19-14.9 entitled "Rhode

Island Fair Debt Collection Practices Act" is hereby amended to read as follows:

19-14.9-12. Registration required.

(1) After July 1, 2008, no person shall engage within this state in the business of a debt

collector, or engage in soliciting the right to collect or receive payment for another of an account,

bill, or other indebtedness, or advertise for or solicit in print the right to collect or receive payment

for another of an account, bill, or other indebtedness, without first registering with the director, or

the director's designee.

(2) The application for registration shall be in writing; shall contain information as the

director may determine; and shall be accompanied by a registration fee of one five hundred dollars

($100 500).

(3) The registration shall be for a period of one year. Each registration shall plainly state

the name of the registrant and the city or town with the name of the street and number, if any, of

the place where the business is to be carried on; provided that the business shall at all times be

conducted in the name of the registrant as it appears on the registration.

(4) No person registered to act within this state as a debt collector shall do so under any

other name or at any other place of business than that named in the registration. The registration

shall be for a single location but may, with notification to the director, be moved to a different

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 2 of 70)

location. A registration shall not be transferable or assignable.

(5) This section shall not apply:

(a) To the servicer of a debt by a mortgage; or

(b) To any debt collector located out of this state, provided that the debt collector:

(1) Is collecting debts on behalf of an out-of-state creditor for a debt that was incurred out

of state; and

(2) Only collects debts in this state using interstate communication methods, including

telephone, facsimile, or mail.

federal savings bank, federal savings and loan association, federal credit union, or any bank, trust

company, savings bank, savings and loan association, or credit union organized under the laws of

this state, or any other state of the United States, or any subsidiary of the above; but except as

provided herein, this section shall apply to a subsidiary or affiliate, as defined by the director, of an

exempted entity and of a bank holding company established in accordance with state or federal law.

SECTION 4. Sections 23-1-55, 23-1-56, 23-1-57 and 23-1-58 of the General Laws in

Chapter 23-1 entitled "Department of Health" are hereby repealed.

23-1-55. Electronic nicotine delivery system distributor, and dealer licenses required

-- Definitions.

Definitions. Whenever used in §§ 23-1-56 to 23-1-58, unless the context requires

otherwise:

(1) "Dealer" means any person, whether located within or outside of this state, who sells

or distributes electronic nicotine-delivery system products to a consumer in this state;

(2) "Distributor" means any person:

(i) Whether located within or outside of this state, other than a dealer, who sells or

distributes electronic nicotine-delivery system products within or into this state. Such term shall

not include any electronic nicotine-delivery system products manufacturer, export warehouse

proprietor, or importer with a valid permit, if such person sells or distributes electronic nicotine-

delivery system products in this state only to licensed distributors or to an export warehouse

proprietor or another manufacturer with a valid permit;

(ii) Selling electronic nicotine-delivery system products directly to consumers in this state

by means of at least twenty-five (25) electronic nicotine-delivery system product vending

machines;

(iii) Engaged in this state in the business of manufacturing electronic nicotine-delivery

system products or any person engaged in the business of selling electronic nicotine-delivery

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 3 of 70)

system products to dealers, or to other persons, for the purpose of resale only; provided that seventy-

five percent (75%) of all electronic nicotine-delivery system products sold by that person in this

state are sold to dealers or other persons for resale and selling electronic nicotine-delivery system

products directly to at least forty (40) dealers or other persons for resale; or

(iv) Maintaining one or more regular places of business in this state for that purpose;

provided, that seventy-five percent (75%) of the sold electronic nicotine-delivery system products

are purchased directly from the manufacturer and selling electronic nicotine-delivery system

products directly to at least forty (40) dealers or other persons for resale;

(3) "Electronic nicotine-delivery system" means the products as defined in § 11-9-13.4(15).

23-1-56. License.

(a) Each person engaging in the business of selling electronic nicotine-delivery system

products in the state, including any distributor or dealer, shall secure a license annually from the

department before engaging in that business or continuing to engage in it. A separate application

and license is required for each place of business operated by a distributor or dealer. If the applicant

for a license does not have a place of business in this state, the license shall be issued for such

applicant's principal place of business, wherever located. A licensee shall notify the department

within thirty (30) days in the event that it changes its principal place of business. A separate license

is required for each class of business if the applicant is engaged in more than one of the activities

required to be licensed by this section. No person shall maintain or operate, or cause to be operated,

a vending machine for electronic nicotine-delivery systems without procuring a dealer's license for

each machine.

(b) The director shall have authority to set a reasonable fee not to exceed twenty-five

dollars ($25.00) for the issuance of the license.

the license.

(d) The director shall create and maintain a website setting forth the identity of all licensed

persons under this section, itemized by type of license possessed, and shall update the site no less

frequently than six (6) times per year.

(e) A manufacturer or importer may sell or distribute electronic nicotine-delivery systems

to a person located or doing business within the state only if such person is a licensed distributor.

An importer may obtain electronic nicotine-delivery systems only from a licensed manufacturer. A

distributor may sell or distribute electronic nicotine-delivery systems to a person located or doing

business within this state only if such person is a licensed distributor or dealer. A distributor may

obtain electronic nicotine-delivery systems only from a licensed manufacturer, importer, or

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 4 of 70)

distributor. A dealer may obtain electronic nicotine-delivery systems only from a licensed

distributor.

(f)(1) No license under this chapter may be granted, maintained, or renewed if the

applicant, or any combination of persons owning directly or indirectly any interests in the applicant:

(i) Is delinquent in any tax filings for one month or more; or

(ii) Had a license under this chapter revoked within the past two (2) years.

(2) No person shall apply for a new license, or renewal of a license and no license shall be

issued or renewed for any person, unless all outstanding fines, fees, or other charges relating to any

license held by that person have been paid.

(3) No license shall be issued relating to a business at any specific location until all prior

licenses relating to that location have been officially terminated and all fines, fees, or charges

relating to the prior licenses have been paid or otherwise resolved or if the director has found that

the person applying for the new license is not acting as an agent for the prior licensee who is subject

to any such related fines, fees, or charges that are still due. Evidence of such agency status includes,

but is not limited to, a direct familial relationship and/or employment, contractual, or other formal

financial or business relationship with the prior licensee.

(4) No person shall apply for a new license pertaining to a specific location in order to

evade payment of any fines, fees, or other charges relating to a prior license for that location.

(5) No new license shall be issued for a business at a specific location for which a license

has already issued unless there is a bona fide, good-faith change in ownership of the business at

that location.

(6) No license or permit shall be issued, renewed or maintained for any person, including

the owners of the business being licensed, who has been convicted of violating any criminal law

relating to tobacco products and/or electronic nicotine-delivery system products, the payment of

taxes, or fraud, or has been ordered to pay civil fines of more than twenty-five thousand dollars

($25,000) for violations of any civil law relating to tobacco products and/or electronic nicotine-

delivery system products, the payment of taxes, or fraud.

23-1-57. Penalties for unlicensed business.

Any distributor or dealer who sells, offers for sale, or possesses with intent to sell,

electronic nicotine-delivery system products without a license as provided in § 23-1-56, shall be

fined in accordance with the provisions of, and the penalties contained in, § 23-1-58.

23-1-58. Penalty for operating without a dealer license.

(a) Any individual or business who violates this chapter by selling or conveying an

electronic nicotine-delivery system product without a retail license shall be cited for that violation

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 5 of 70)

and shall be required to appear in district court for a hearing on the citation.

(b) Any individual or business cited for a violation hereunder shall:

(1) Either post a five hundred dollar ($500) bond with the district court within ten (10) days

of the citation; or

(2) Sign and accept the citation indicating a promise to appear in court.

(1) Pay the five hundred dollar ($500) fine, either by mail or in person, within ten (10) days

after receiving the citation; or

(2) If that individual or business has posted a bond, forfeit the bond by not appearing at the

scheduled hearing. If the individual or business cited pays the five hundred dollar ($500) fine or

forfeits the bond, that individual or business is deemed to have admitted the cited violation and to

have waived the right to a hearing on the issue of commission on the violation.

(d) The court, after a hearing on a citation, shall make a determination as to whether a

violation has been committed. If it is established that the violation did occur, the court shall impose

a five hundred dollar ($500) fine in addition to any court costs or fees.

SECTION 5. Sections 28-43-8.1 and 28-43-29 of the General Laws in Chapter 28-43

entitled "Employment Security - Contributions" are hereby amended to read as follows:

28-43-8.1. Time and manner of payment of employer contributions.

Contributions and assessments required under this chapter for each year shall be paid by

each employer in the manner and at the times that the director may prescribe.

28-43-29. Liability for contributions and election of reimbursement.

(a) Any nonprofit organization or governmental entity which is or becomes subject to

chapters 42 -- 44 of this title on or after January 1, 1978, shall pay contributions under the provisions

of chapters 42 -- 44 of this title, unless it elects, in accordance with this section, to pay to the director

for the employment security fund the full amount of regular benefits paid plus the full amount of

the extended benefits paid, less any federal payments to the state under § 204 of the Federal-State

Extended Unemployment Compensation Act of 1970, that are attributable to service in the employ

of that nonprofit organization or governmental entity to individuals for weeks of unemployment

which begin during the effective period of that election; provided, that for weeks of unemployment

beginning on or after January 1, 1979, governmental entities which have elected reimbursement

shall be responsible for reimbursing the employment security fund for the full amount of extended

benefits paid that is attributable to service in the employ of those entities.

(b) Any nonprofit organization or governmental entity which is or becomes subject to

chapters 42 -- 44 of this title on January 1, 1978, may elect to become liable for payments in lieu

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 6 of 70)

of contributions for a period of not less than the 1978 tax year and the next ensuing tax year

provided it files with the director a written notice of its election within the thirty (30) day period

immediately following January 1, 1978.

42 -- 44 of this title after January 1, 1978, may elect to become liable for payments in lieu of

contributions for a period of not less than the balance of the tax year beginning with the date on

which that subjectivity begins and the next ensuing tax year by filing a written notice of its election

with the director not later than thirty (30) days immediately following the date of the determination

of that subjectivity.

(d) Any nonprofit organization or governmental entity which makes an election in

accordance with subsection (b) or (c) of this section will continue to be liable for payments in lieu

of contributions until it files with the director a written notice terminating its election not later than

thirty (30) days prior to the beginning of the tax year for which that termination shall first be

effective. The nonprofit organization or governmental entity shall thereafter be liable for the

payment of contributions for not less than that tax year and the next ensuing tax year before another

election can be exercised.

(e) Any nonprofit organization or governmental entity which has been paying contributions

under chapters 42 -- 44 of this title for a period subsequent to January 1, 1978, may change to a

reimbursable basis by filing with the director not later than thirty (30) days prior to the beginning

of any tax year a written notice of election to become liable for payments in lieu of contributions.

That election shall not be terminable by the organization or entity for that tax year and for the next

ensuing tax year.

(f) The director may for good cause extend the period within which a notice of election, or

a notice of termination, must be filed and may permit an election to be retroactive but not any earlier

than with respect to benefits paid on or after January 1, 1978.

(g) The director, in accordance with any procedures that he or she may prescribe, shall

notify each nonprofit organization or governmental entity of any determination which may be made

of its status as an employer and of the effective date of any election which it makes and of any

termination of that election. Any determination shall be conclusive on the organization or the entity

unless within fifteen (15) days after notice of the determination has been mailed or otherwise

delivered to it, an appeal is made to the board of review in writing in accordance with the provisions

of § 28-43-14.

(h) Effective January 1, 2020, notwithstanding the foregoing, any nonprofit organization,

not including governmental entities, employing not less than one thousand (1,000) employees shall

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 7 of 70)

be subject to the job development assessment as prescribed in § 28-43-8.5. The director is

authorized to promulgate regulations to administer this assessment.

SECTION 6. Section 31-3-6 of the General Laws in Chapter 31-3 entitled "Registration of

Vehicles" is hereby amended to read as follows:

31-3-6. List of vehicles on which taxes delinquent -- Denial of registration. [Effective

January 1, 2019.]

(a) On or before October 31 in each year, the collector of taxes of each city or town shall

may furnish the division of motor vehicles, with a listing showing the registration plate numbers,

names, and addresses of the taxpayers of the city or town whose personal property and/or excise

tax on motor vehicles, the assessment of which were made the prior December 31 in the case of the

property tax, and the tax levied in the current year in the case of the excise tax, remained unpaid as

of the date of the list, and shall remit to the division of motor vehicles a five-dollar ($ 5.00) fee for

each taxpayer. Subsequently, the collector of taxes in each city or town shall, at the times and in

the manner prescribed by the administrator of the division of motor vehicles, furnish to the division

of motor vehicles the names and addresses of those persons whose names appeared on that list who

have subsequently paid the personal property, and/or excise taxes on motor vehicles, and the

division shall remove from the list the names and addresses of those persons. No city or town

treasurer or tax collector shall refuse to accept personal property, and/or excise taxes on a motor

vehicle, or refuse to remove the names and addresses of the owners of the vehicle from the list

because of any other taxes owing the city or town. No person, corporation, partnership, joint stock

company, or association whose name appears on the list and whose name has not been subsequently

removed from the list shall be permitted to register any motor vehicle until all the excise and

attendant penalties have been paid in full and the payment has been certified to the division of

motor vehicles by the tax collector. The provisions of this section shall not be construed so as to

prevent the payment of taxes on motor vehicles in quarterly installments as provided in chapter 5

of title 44. The provisions of this section shall apply in all respects in the case of taxes assessed

upon motor vehicles by any fire district. The division of motor vehicles shall not add to the list the

names and addresses of taxpayers that are received from any city or town with fees payable under

this subsection that have been outstanding for more than thirty (30) days until such fees are paid in

full.

(b) The division of motor vehicles (the "division") shall provide a written notice to those

persons or other taxpayers (the "person") whose name appears on the list generated in accordance

with the provisions of subsection (a). This notice shall include:

(1) The name of the municipality or other entity providing the person's name to the division;

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 8 of 70)

and

(2) A statement that the person identified on the list shall not be permitted to register any

motor vehicle until the tax matter has been resolved and the person's name is removed from the list

as provided for under subsection (a).

SECTION 7. Effective July 1, 2019, Sections 42-63.1-3 and 42-63.1-12 of the General

Laws in Chapter 42-63.1 entitled "Tourism and Development" are hereby amended to read as

follows:

42-63.1-3. Distribution of tax.

(a) For returns and tax payments received on or before December 31, 2015, except as

provided in § 42-63.1-12, the proceeds of the hotel tax, excluding such portion of the hotel tax

collected from residential units offered for tourist or transient use through a hosting platform, shall

be distributed as follows by the division of taxation and the city of Newport:

(1) Forty-seven percent (47%) of the tax generated by the hotels in the district, except as

otherwise provided in this chapter, shall be given to the regional tourism district wherein the hotel

is located; provided, however, that from the tax generated by the hotels in the city of Warwick,

thirty-one percent (31%) of the tax shall be given to the Warwick regional tourism district

established in § 42-63.1-5(a)(5) and sixteen percent (16%) of the tax shall be given to the Greater

Providence-Warwick Convention and Visitors' Bureau established in § 42-63.1-11; and provided

further, that from the tax generated by the hotels in the city of Providence, sixteen percent (16%)

of that tax shall be given to the Greater Providence-Warwick Convention and Visitors' Bureau

established by § 42-63.1-11, and thirty-one percent (31%) of that tax shall be given to the

Convention Authority of the city of Providence established pursuant to the provisions of chapter

84 of the public laws of January, 1980; provided, however, that the receipts attributable to the

district as defined in § 42-63.1-5(a)(7) shall be deposited as general revenues, and that the receipts

attributable to the district as defined in § 42-63.1-5(a)(8) shall be given to the Rhode Island

commerce corporation as established in chapter 64 of title 42.

(2) Twenty-five percent (25%) of the hotel tax shall be given to the city or town where the

hotel, which generated the tax, is physically located, to be used for whatever purpose the city or

town decides.

(3) Twenty-one (21%) of the hotel tax shall be given to the Rhode Island commerce

corporation established in chapter 64 of title 42, and seven percent (7%) to the Greater Providence-

Warwick Convention and Visitors' Bureau.

(b) For returns and tax payments received after December 31, 2015, except as provided in

§ 42-63.1-12, the proceeds of the hotel tax, excluding such portion of the hotel tax collected from

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 9 of 70)

residential units offered for tourist or transient use through a hosting platform, shall be distributed

as follows by the division of taxation and the city of Newport:

(1) For the tax generated by the hotels in the Aquidneck Island district, as defined in § 42-

63.1-5, forty-two percent (42%) of the tax shall be given to the Aquidneck Island district, twenty-

five (25%) of the tax shall be given to the city or town where the hotel, which generated the tax, is

physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick

Convention and Visitors Bureau established in § 42-63.1-11, and twenty-eight percent (28%) of

the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of title

42.

(2) For the tax generated by the hotels in the Providence district as defined in § 42-63.1-5,

twenty eight percent (28%) of the tax shall be given to the Providence district, twenty-five percent

(25%) of the tax shall be given to the city or town where the hotel, which generated the tax, is

physically located, twenty-three (23%) of the tax shall be given to the Greater Providence-Warwick

Convention and Visitors Bureau established in § 42-63.1-11, and twenty-four (24%) of the tax shall

be given to the Rhode Island commerce corporation established in chapter 64 of title 42.

(3) For the tax generated by the hotels in the Warwick district as defined in § 42-63.1-5,

twenty-eight percent (28%) of the tax shall be given to the Warwick District, twenty-five percent

(25%) of the tax shall be given to the city or town where the hotel, which generated the tax, is

physically located, twenty-three percent (23%) of the tax shall be given to the Greater Providence-

Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-four (24%) of

the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of title

42.

(4) For the tax generated by the hotels in the Statewide district, as defined in § 42-63.1-5,

twenty-five percent (25%) of the tax shall be given to the city or town where the hotel, which

generated the tax, is physically located, five percent (5%) of the tax shall be given to the Greater

Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy

percent (70%) of the tax shall be given to the Rhode Island commerce corporation established in

chapter 64 of title 42.

(5) With respect to the tax generated by hotels in districts other than those set forth in

subdivisions (b)(1) through (b)(4), forty-two percent (42%) of the tax shall be given to the regional

tourism district, as defined in § 42-63.1-5, wherein the hotel is located, twenty-five percent (25%)

of the tax shall be given to the city or town where the hotel, which generated the tax, is physically

located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick Convention

and Visitors Bureau established in § 42-63.1-11, and twenty-eight (28%) of the tax shall be given

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 10 of 70)

to the Rhode Island commerce corporation established in chapter 64 of title 42.

transient use through a hosting platform shall be distributed as follows by the division of taxation

and the city of Newport: twenty-five percent (25%) twenty and eight tenths percent (20.8%) of the

tax shall be given to the city or town where the residential unit, which generated the tax, is

physically located, sixteen and seven tenths percent (16.7%) of the tax shall be given to general

revenue, and seventy-five percent (75%) sixty-two and one half percent (62.5%) of the tax shall be

given to the Rhode Island commerce corporation established in chapter 64 of title 42.

(d) The Rhode Island commerce corporation shall be required in each fiscal year to spend

on the promotion and marketing of Rhode Island as a destination for tourists or businesses an

amount of money of no less than the total proceeds of the hotel tax it receives pursuant to this

chapter for such fiscal year.

(e) Notwithstanding the foregoing provisions of this section, for returns and tax payments

received on or after July 1, 2016, and on or before June 30, 2017, except as provided in § 42-63.1-

12, the proceeds of the hotel tax, excluding such portion of the hotel tax collected from residential

units offered for tourist or transient use through a hosting platform, shall be distributed in

accordance with the distribution percentages established in subsections (a)(1) through (a)(3) of this

section by the division of taxation and the city of Newport.

(f) For returns and tax payments received on or after July 1, 2018 and on or before June

30, 2019, except as provided in § 42-63.1-12, the proceeds of the hotel tax, excluding such portion

of the hotel tax collected from residential units offered for tourist or transient use through a hosting

platform, shall be distributed as follows by the division of taxation and the city of Newport:

(1) For the tax generated by the hotels in the Aquidneck Island district, as defined in § 42-

63.1-5, forty-five percent (45%) of the tax shall be given to the Aquidneck Island district, twenty-

five (25%) of the tax shall be given to the city or town where the hotel, which generated the tax, is

physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick

Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five percent (25%) of the

tax shall be given to the Rhode Island commerce corporation established in chapter 64 of title 42.

(2) For the tax generated by the hotels in the Providence district as defined in § 42-63.1-5,

thirty percent (30%) of the tax shall be given to the Providence district, twenty-five percent (25%)

of the tax shall be given to the city or town where the hotel, which generated the tax, is physically

located, twenty-four (24%) of the tax shall be given to the Greater Providence-Warwick

Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one (21%) of the tax shall

be given to the Rhode Island commerce corporation established in chapter 64 of title 42.

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 11 of 70)

(3) For the tax generated by the hotels in the Warwick district as defined in § 42-63.1-5,

thirty percent (30%) of the tax shall be given to the Warwick District, twenty-five percent (25%)

of the tax shall be given to the city or town where the hotel, which generated the tax, is physically

located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick

Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one (21%) of the tax shall

be given to the Rhode Island commerce corporation established in chapter 64 of title 42.

(4) For the tax generated by the hotels in the Statewide district, as defined in § 42-63.1-5,

twenty-five percent (25%) of the tax shall be given to the city or town where the hotel, which

generated the tax, is physically located, five percent (5%) of the tax shall be given to the Greater

Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy

percent (70%) of the tax shall be given to the Rhode Island commerce corporation established in

chapter 64 of title 42.

(5) With respect to the tax generated by hotels in districts other than those set forth in

subdivisions (b)(1) through (b)(4), forty-five percent (45%) of the tax shall be given to the regional

tourism district, as defined in § 42-63.1-5, wherein the hotel is located, twenty-five percent (25%)

of the tax shall be given to the city or town where the hotel, which generated the tax, is physically

located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick Convention

and Visitors Bureau established in § 42-63.1-11, and twenty-five (25%) of the tax shall be given to

the Rhode Island commerce corporation established in chapter 64 of title 42.

(g) For returns and tax payments received on or after July 1, 2019, except as provided in §

42-63.1-12, the proceeds of the hotel tax, excluding such portion of the hotel tax collected from

residential units offered for tourist or transient use through a hosting platform, shall be distributed

as follows by the division of taxation and the city of Newport:

(1) For the tax generated by the hotels in the Aquidneck Island district, as defined in § 42-

63.1-5, thirty-seven and one half percent (37.5%) of the tax shall be given to the Aquidneck Island

district, twenty and eight tenths percent (20.8%) of the tax shall be given to the city or town where

the hotel, which generated the tax, is physically located, four and two tenths percent (4.2%) of the

tax shall be given to the Greater Providence-Warwick Convention and Visitors Bureau established

in § 42-63.1-11, sixteen and seven tenths percent (16.7%) of the tax shall be transferred to General

Revenue, and twenty and eight tenths percent (20.8%) of the tax shall be given to the Rhode Island

commerce corporation established in chapter 64 of title 42.

(2) For the tax generated by the hotels in the Providence district as defined in § 42-63.1-5,

twenty-five percent (25%) of the tax shall be given to the Providence district, twenty and eight

tenths percent (20.8%) of the tax shall be given to the city or town where the hotel, which generated

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 12 of 70)

the tax, is physically located, twenty percent (20%) of the tax shall be given to the Greater

Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, sixteen and

seven tenths percent (16.7%) of the tax shall be transferred to General Revenue, and seventeen and

one half percent (17.5%) of the tax shall be given to the Rhode Island commerce corporation

established in chapter 64 of title 42.

(3) For the tax generated by the hotels in the Warwick district as defined in § 42-63.1-5,

twenty-five percent (25%) of the tax shall be given to the Warwick District, twenty and eight tenths

percent (20.8%) of the tax shall be given to the city or town where the hotel, which generated the

tax, is physically located, twenty percent (20%) of the tax shall be given to the Greater Providence-

Warwick Convention and Visitors Bureau established in § 42-63.1-11, sixteen and seven tenths

percent (16.7%) of the tax shall be transferred to General Revenue, and seventeen and one half

percent (17.5%) of the tax shall be given to the Rhode Island commerce corporation established in

chapter 64 of title 42.

(4) For the tax generated by the hotels in the Statewide district, as defined in § 42-63.1-5,

twenty and eight tenths percent (20.8%) of the tax shall be given to the city or town where the hotel,

which generated the tax, is physically located, four and two tenths percent (4.2%) of the tax shall

be given to the Greater Providence-Warwick Convention and Visitors Bureau established in § 42-

63.1-11, sixteen and seven tenths percent (16.7%) of the tax shall be transferred to General

Revenue, and fifty-eight and three tenths(58.3%) of the tax shall be given to the Rhode Island

commerce corporation established in chapter 64 of title 42.

(5) With respect to the tax generated by hotels in districts other than those set forth in

subdivisions (g)(1) through (g)(4), thirty-seven and one half percent (37.5%) of the tax shall be

given to the regional tourism district, as defined in § 42-63.1-5, wherein the hotel is located, twenty

and eight tenths percent (20.8%) of the tax shall be given to the city or town where the hotel, which

generated the tax, is physically located, four and two tenths percent (4.2%) of the tax shall be given

to the Greater Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11,

sixteen and seven tenths percent (16.7%) of the tax shall be transferred to General Revenue, twenty

and eight tenths percent (20.8%) of the tax shall be given to the Rhode Island commerce corporation

established in chapter 64 of title 42.

42-63.1-12. Distribution of tax to Rhode Island Convention Center Authority.

(a) For returns and tax received on or before December 31, 2015, the proceeds of the hotel

tax generated by any and all hotels physically connected to the Rhode Island Convention Center

shall be distributed as follows: twenty-seven percent (27%) shall be deposited as general revenues;

thirty-one percent (31%) shall be given to the convention authority of the city of Providence; twelve

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 13 of 70)

percent (12%) shall be given to the greater Providence-Warwick convention and visitor's bureau;

thirty percent (30%) shall be given to the Rhode Island convention center authority to be used in

the furtherance of the purposes set forth in § 42-99-4.

(b) For returns and tax received after December 31, 2015, the proceeds of the hotel tax

generated by any and all hotels physically connected to the Rhode Island Convention Center shall

be distributed as follows: twenty-eight percent (28%) shall be given to the convention authority of

the city of Providence; twelve percent (12%) shall be given to the greater Providence-Warwick

convention and visitor's bureau; and sixty percent (60%) shall be given to the Rhode Island

Commerce Corporation established in chapter 64 of title 42.

into contracts with the Greater Providence-Warwick Convention and Visitors' Bureau in the

furtherance of the purposes set forth in this chapter.

(d) For returns and tax received on or after July 1, 2018 and on or before June 30, 2019,

the proceeds of the hotel tax generated by any and all hotels physically connected to the Rhode

Island Convention Center shall be distributed as follows: thirty percent (30%) shall be given to the

convention authority of the city of Providence; twenty percent (20%) shall be given to the greater

Providence-Warwick convention and visitor's bureau; and fifty percent (50%) shall be given to the

Rhode Island Commerce Corporation established in chapter 64 of title 42.

(e) For returns and tax received on or after July 1, 2019, the proceeds of the hotel tax

generated by any and all hotels physically connected to the Rhode Island Convention Center shall

be distributed as follows: twenty-five percent (25%) shall be given to the convention authority of

the city of Providence; sixteen and seven tenths percent (16.7%) shall be given to the greater

Providence-Warwick convention and visitor's bureau; sixteen and seven tenths percent (16.7%) of

the tax shall be given to General Revenue; and forty-one and six tenths percent (41.6%) shall be

given to the Rhode Island Commerce Corporation established in chapter 64 of title 42.

SECTION 8. Section 42-142-8 of the General Laws in Chapter 42-142 entitled

"Department of Revenue" is hereby amended to read as follows:

42-142-8. Collection unit.

(a) The director of the department of revenue is authorized to establish within the

department of revenue a collection unit for the purpose of assisting state agencies in the collection

of debts owed to the state. The director of the department of revenue may enter into an agreement

with any state agency(ies) to collect any delinquent debt owed to the state.

(b) The director of the department of revenue shall initially implement a pilot program to

assist the agency(ies) with the collection of delinquent debts owed to the state.

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 14 of 70)

within the department of revenue, debts owed by delinquent debtors where the nature and amount

of the debt owed has been determined and reconciled by the agency and the debt is: (i) The subject

of a written settlement agreement and/or written waiver agreement and the delinquent debtor has

failed to timely make payments under said agreement and/or waiver and is therefore in violation of

the terms of said agreement and/or waiver; (ii) The subject of a final administrative order or

decision and the debtor has not timely appealed said order or decision; (iii) The subject of final

order, judgment or decision of a court of competent jurisdiction and the debtor has not timely

appealed said order, judgment or decision. The collection unit shall not accept a referral of any

delinquent debt unless it satisfies subsection (c)(i), (ii) or (iii) of this section.

(d) Any agency(ies) entering into an agreement with the department of revenue to allow

the collection unit of the department to collect a delinquent debt owed to the state shall indemnify

the department of revenue against injuries, actions, liabilities, or proceedings arising from the

collection, or attempted collection, by the collection unit of the debt owed to the state.

(e) Before referring a delinquent debt to the collection unit, the agency(ies) must notify the

debtor of its intention to submit the debt to the collection unit for collection and of the debtor's right

to appeal that decision not less than thirty (30) days before the debt is submitted to the collection

unit.

(f) At such time as the agency(ies) refers a delinquent debt to the collection unit, the agency

shall: (i) Represent in writing to the collection unit that it has complied with all applicable state and

federal laws and regulations relating to the collection of the debt, including, but not limited to, the

requirement to provide the debtor with the notice of referral to the collection unit under subsection

(e) of this section; and (ii) Provide the collection unit personnel with all relevant supporting

documentation including, but not limited to, notices, invoices, ledgers, correspondence,

agreements, waivers, decisions, orders, and judgments necessary for the collection unit to attempt

to collect the delinquent debt.

(g) The referring agency(ies) shall assist the collection unit by providing any and all

information, expertise, and resources deemed necessary by the collection unit to collect the

delinquent debts referred to the collection unit.

(h) Upon receipt of a referral of a delinquent debt from an agency(ies), the amount of the

delinquent debt shall accrue interest at the an annual rate of interest established by law for the

referring agency or at an annual rate of 13%, whichever percentage rate is greater. with such rate

determined by adding two percent (2%) to the prime rate which was in effect on October 1 of the

preceding year; provided however, in no event shall the rate of interest exceed twenty-one percent

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 15 of 70)

(21%) per annum nor be less than eighteen percent (18%) per annum.

(i) Upon receipt of a referral of a delinquent debt from the agency(ies), the collection unit

shall provide the delinquent debtor with a "Notice of Referral" advising the debtor that:

(1) The delinquent debt has been referred to the collection unit for collection; and

(2) The collection unit will initiate, in its names, any action that is available under state law

for the collection of the delinquent debt, including, but not limited to, referring the debt to a third

party to initiate said action.

(j) Upon receipt of a referral of a delinquent debt from an agency(ies), the director of the

department of revenue shall have the authority to institute, in its name, any action(s) that are

available under state law for collection of the delinquent debt and interest, penalties, and/or fees

thereon and to, with or without suit, settle the delinquent debt.

(k) In exercising its authority under this section, the collection unit shall comply with all

state and federal laws and regulations related to the collection of debts.

(l) Upon the receipt of payment from a delinquent debtor, whether a full or partial payment,

the collection unit shall disburse/deposit the proceeds of said payment in the following order:

(1) To the appropriate federal account to reimburse the federal government funds owed to

them by the state from funds recovered; and

(2) The balance of the amount collected to the referring agency.

(m) Notwithstanding the above, the establishment of a collection unit within the department

of revenue shall be contingent upon an annual appropriation by the general assembly of amounts

necessary and sufficient to cover the costs and expenses to establish, maintain, and operate the

collection unit including, but not limited to, computer hardware and software, maintenance of the

computer system to manage the system, and personnel to perform work within the collection unit.

(n) In addition to the implementation of any pilot program, the collection unit shall comply

with the provisions of this section in the collection of all delinquent debts under this section.

(o) The department of revenue is authorized to promulgate rules and regulations as it deems

appropriate with respect to the collection unit.

(p) By September 1, 2020, and each year thereafter, the department of revenue shall

specifically assess the performance, effectiveness, and revenue impact of the collections associated

with this section, including, but not limited to, the total amounts referred and collected by each

referring agency during the previous state fiscal year to the governor, the speaker of the house of

representatives, the president of the senate, the chairpersons of the house and senate finance

committees, and the house and senate fiscal advisors. Such report shall include the net revenue

impact to the state of the collection unit.

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 16 of 70)

(q) No operations of a collection unit pursuant to this chapter shall be authorized after June

30, 2021.

SECTION 9. Sections 44-18-7, 44-18-7.1, 44-18-7.3, 44-18-8, 44-18-15, 44-18-15.2, 44-

18-20, 44-18-21, 44-18-22, 44-18-23, 44-18-25 and 44-18-30 of the General Laws in Chapter 44-

18 entitled "Sales and Use Taxes - Liability and Computation" are hereby amended to read as

follows:

44-18-7. Sales defined.

"Sales" means and includes:

(1) Any transfer of title or possession, exchange, barter, lease, or rental, conditional or

otherwise, in any manner or by any means of tangible personal property for a consideration.

"Transfer of possession", "lease", or "rental" includes transactions found by the tax administrator

to be in lieu of a transfer of title, exchange, or barter.

(2) The producing, fabricating, processing, printing, or imprinting of tangible personal

property for a consideration for consumers who furnish either directly or indirectly the materials

used in the producing, fabricating, processing, printing, or imprinting.

(3) The furnishing and distributing of tangible personal property for a consideration by

social, athletic, and similar clubs and fraternal organizations to their members or others.

(4) The furnishing, preparing, or serving for consideration of food, meals, or drinks,

including any cover, minimum, entertainment, or other charge in connection therewith.

(5) A transaction whereby the possession of tangible personal property is transferred, but

the seller retains the title as security for the payment of the price.

(6) Any withdrawal, except a withdrawal pursuant to a transaction in foreign or interstate

commerce, of tangible personal property from the place where it is located for delivery to a point

in this state for the purpose of the transfer of title or possession, exchange, barter, lease, or rental,

conditional or otherwise, in any manner or by any means whatsoever, of the property for a

consideration.

(7) A transfer for a consideration of the title or possession of tangible personal property,

which has been produced, fabricated, or printed to the special order of the customer, or any

publication.

(8) The furnishing and distributing of electricity, natural gas, artificial gas, steam,

refrigeration, and water.

(9)(i) The furnishing for consideration of intrastate, interstate, and international

telecommunications service sourced in this state in accordance with §§ 44-18.1-15 and 44-18.1-16

and all ancillary services, and any maintenance services of telecommunication equipment other

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 17 of 70)

than as provided for in § 44-18-12(b)(ii). For the purposes of chapters 18 and 19 of this title only,

telecommunication service does not include service rendered using a prepaid telephone calling

arrangement.

(ii) Notwithstanding the provisions of paragraph (i) of this subdivision, in accordance with

the Mobile Telecommunications Sourcing Act (4 U.S.C. §§ 116 -- 126), subject to the specific

exemptions described in 4 U.S.C. § 116(c), and the exemptions provided in §§ 44-18-8 and 44-18-

12, mobile telecommunications services that are deemed to be provided by the customer's home

service provider are subject to tax under this chapter if the customer's place of primary use is in this

state regardless of where the mobile telecommunications services originate, terminate, or pass

through. Mobile telecommunications services provided to a customer, the charges for which are

billed by or for the customer's home service provider, shall be deemed to be provided by the

customer's home service provider.

(10) The furnishing of service for transmission of messages by telegraph, cable, or radio

and the furnishing of community antenna television, subscription television, and cable television

services.

(11) The rental of living quarters in any hotel, rooming house, or tourist camp.

(12) The transfer for consideration of prepaid telephone calling arrangements and the

recharge of prepaid telephone calling arrangements sourced to this state in accordance with §§ 44-

18.1-11 and 44-18.1-15. "Prepaid telephone calling arrangement" means and includes prepaid

calling service and prepaid wireless calling service.

(13) The sale, storage, use, or other consumption of over-the-counter drugs as defined in §

44-18-7.1(h)(ii).

(14) The sale, storage, use, or other consumption of prewritten computer software delivered

electronically or by load and leave as defined in § 44-18-7.1(g)(v).

(15) The sale, storage, use, or other consumption of vendor-hosted prewritten computer

software as defined in § 44-18-7.1(g)(vii).

(16) The sale, storage, use, or other consumption of specified digital products as defined in

44-18-7.1(x).

(176) The sale, storage, use, or other consumption of medical marijuana as defined in § 21-

28.6-3.

(187) The furnishing of services in this state as defined in § 44-18-7.3.

44-18-7.1. Additional definitions.

(a) "Agreement" means the streamlined sales and use tax agreement.

(b) "Alcoholic beverages" means beverages that are suitable for human consumption and

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 18 of 70)

contain one-half of one percent (.5%) or more of alcohol by volume.

and services to real property, where (1) The products are otherwise distinct and identifiable, and

(2) The products are sold for one non-itemized price. A "bundled transaction" does not include the

sale of any products in which the "sales price" varies, or is negotiable, based on the selection by

the purchaser of the products included in the transaction.

(i) "Distinct and identifiable products" does not include:

(A) Packaging -- such as containers, boxes, sacks, bags, and bottles -- or other materials --

such as wrapping, labels, tags, and instruction guides -- that accompany the "retail sale" of the

products and are incidental or immaterial to the "retail sale" thereof. Examples of packaging that

are incidental or immaterial include grocery sacks, shoeboxes, dry cleaning garment bags, and

express delivery envelopes and boxes.

(B) A product provided free of charge with the required purchase of another product. A

product is "provided free of charge" if the "sales price" of the product purchased does not vary

depending on the inclusion of the products "provided free of charge."

C of the agreement.

(ii) The term "one non-itemized price" does not include a price that is separately identified

by product on binding sales or other supporting sales-related documentation made available to the

customer in paper or electronic form including, but not limited to, an invoice, bill of sale, receipt,

contract, service agreement, lease agreement, periodic notice of rates and services, rate card, or

price list.

(iii) A transaction that otherwise meets the definition of a "bundled transaction" as defined

above, is not a "bundled transaction" if it is:

(A) The "retail sale" of tangible personal property and a service where the tangible personal

property is essential to the use of the service, and is provided exclusively in connection with the

service, and the true object of the transaction is the service; or

(B) The "retail sale" of services where one service is provided that is essential to the use or

receipt of a second service and the first service is provided exclusively in connection with the

second service and the true object of the transaction is the second service; or

price" or "sales price" of the taxable products is de minimis.

1. De minimis means the seller's "purchase price" or "sales price" of the taxable products

is ten percent (10%) or less of the total "purchase price" or "sales price" of the bundled products.

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 19 of 70)

2. Sellers shall use either the "purchase price" or the "sales price" of the products to

determine if the taxable products are de minimis. Sellers may not use a combination of the

"purchase price" and "sales price" of the products to determine if the taxable products are de

minimis.

3. Sellers shall use the full term of a service contract to determine if the taxable products

are de minimis; or

(D) The "retail sale" of exempt tangible personal property and taxable tangible personal

property where:

1. The transaction includes "food and food ingredients", "drugs", "durable medical

equipment", "mobility enhancing equipment", "over-the-counter drugs", "prosthetic devices" (all

as defined in this section) or medical supplies; and

2. Where the seller's "purchase price" or "sales price" of the taxable tangible personal

property is fifty percent (50%) or less of the total "purchase price" or "sales price" of the bundled

tangible personal property. Sellers may not use a combination of the "purchase price" and "sales

price" of the tangible personal property when making the fifty percent (50%) determination for a

transaction.

(d) "Certified automated system (CAS)" means software certified under the agreement to

calculate the tax imposed by each jurisdiction on a transaction, determine the amount of tax to remit

to the appropriate state, and maintain a record of the transaction.

(e) "Certified service provider (CSP)" means an agent certified under the agreement to

perform all the seller's sales and use tax functions, other than the seller's obligation to remit tax on

its own purchases.

(f) Clothing and related items.

(i) "Clothing" means all human wearing apparel suitable for general use.

(ii) "Clothing accessories or equipment" means incidental items worn on the person or in

conjunction with "clothing." "Clothing accessories or equipment" does not include "clothing",

"sport or recreational equipment", or "protective equipment."

(iii) "Protective equipment" means items for human wear and designed as protection of the

wearer against injury or disease or as protections against damage or injury of other persons or

property but not suitable for general use. "Protective equipment" does not include "clothing",

"clothing accessories or equipment", and "sport or recreational equipment."

(iv) "Sport or recreational equipment" means items designed for human use and worn in

conjunction with an athletic or recreational activity that are not suitable for general use. "Sport or

recreational equipment" does not include "clothing", "clothing accessories or equipment", and

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 20 of 70)

"protective equipment."

(g) Computer and related items.

(i) "Computer" means an electronic device that accepts information in digital or similar

form and manipulates it for a result based on a sequence of instructions.

(ii) "Computer software" means a set of coded instructions designed to cause a "computer"

or automatic data processing equipment to perform a task.

(iii) "Delivered electronically" means delivered to the purchaser by means other than

tangible storage media.

(iv) "Electronic" means relating to technology having electrical, digital, magnetic, wireless,

optical, electromagnetic, or similar capabilities.

(v) "Load and leave" means delivery to the purchaser by use of a tangible storage media

where the tangible storage media is not physically transferred to the purchaser.

(vi) "Prewritten computer software" means "computer software," including prewritten

upgrades, that is not designed and developed by the author or other creator to the specifications of

a specific purchaser. The combining of two (2) or more "prewritten computer software" programs

or prewritten portions thereof does not cause the combination to be other than "prewritten computer

software." "Prewritten computer software" includes software designed and developed by the author

or other creator to the specifications of a specific purchaser when it is sold to a person other than

the specific purchaser. Where a person modifies or enhances "computer software" of which the

person is not the author or creator, the person shall be deemed to be the author or creator only of

such person's modifications or enhancements. "Prewritten computer software" or a prewritten

portion thereof that is modified or enhanced to any degree, where such modification or

enhancement is designed and developed to the specifications of a specific purchaser, remains

"prewritten computer software"; provided, however, that where there is a reasonable, separately

stated charge or an invoice or other statement of the price given to the purchaser for such

modification or enhancement, such modification or enhancement shall not constitute "prewritten

computer software."

(vii) "Vendor-hosted prewritten computer software" means prewritten computer software

that is accessed through the internet and/or a vendor-hosted server regardless of whether the access

is permanent or temporary and regardless of whether any downloading occurs.

(h) Drugs and related items.

(i) "Drug" means a compound, substance, or preparation, and any component of a

compound, substance, or preparation, other than "food and food ingredients," "dietary

supplements" or "alcoholic beverages":

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 21 of 70)

(A) Recognized in the official United States Pharmacopoeia, official Homeopathic

Pharmacopoeia of the United States, or official National Formulary, and supplement to any of them;

(B) Intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease;

"Drug" shall also include insulin and medical oxygen whether or not sold on prescription.

(ii) "Over-the-counter drug" means a drug that contains a label that identifies the product

as a drug as required by 21 C.F.R. § 201.66. The "over-the-counter drug" label includes:

(A) A "Drug Facts" panel; or

(B) A statement of the "active ingredient(s)" with a list of those ingredients contained in

the compound, substance, or preparation.

"Over-the-counter drug" shall not include "grooming and hygiene products."

(iii) "Grooming and hygiene products" are soaps and cleaning solutions, shampoo,

toothpaste, mouthwash, antiperspirants, and suntan lotions and screens, regardless of whether the

items meet the definition of "over-the-counter drugs."

(iv) "Prescription" means an order, formula, or recipe issued in any form of oral, written,

electronic, or other means of transmission by a duly licensed practitioner authorized by the laws of

the member state.

(i) "Delivery charges" means charges by the seller of personal property or services for

preparation and delivery to a location designated by the purchaser of personal property or services

including, but not limited to: transportation, shipping, postage, handling, crating, and packing.

"Delivery charges" shall not include the charges for delivery of "direct mail" if the charges

are separately stated on an invoice or similar billing document given to the purchaser.

(j) "Direct mail" means printed material delivered or distributed by United States mail or

other delivery service to a mass audience or to addressees on a mailing list provided by the

purchaser or at the direction of the purchaser when the cost of the items are not billed directly to

the recipients. "Direct mail" includes tangible personal property supplied directly or indirectly by

the purchaser to the direct mail seller for inclusion in the package containing the printed material.

"Direct mail" does not include multiple items of printed material delivered to a single address.

(k) "Durable medical equipment" means equipment including repair and replacement parts

for same which:

(i) Can withstand repeated use; and

(ii) Is primarily and customarily used to serve a medical purpose; and

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 22 of 70)

(iii) Generally is not useful to a person in the absence of illness or injury; and

(iv) Is not worn in or on the body.

Durable medical equipment does not include mobility enhancing equipment.

(l) Food and related items.

(i) "Food and food ingredients" means substances, whether in liquid, concentrated, solid,

frozen, dried, or dehydrated form, that are sold for ingestion or chewing by humans and are

consumed for their taste or nutritional value. "Food and food ingredients" does not include

"alcoholic beverages", "tobacco", "candy", "dietary supplements", and "soft drinks."

(ii) "Prepared food" means:

(A) Food sold in a heated state or heated by the seller;

(B) Two (2) or more food ingredients mixed or combined by the seller for sale as a single

item; or

spoons, glasses, cups, napkins, or straws. A plate does not include a container or packaging used

to transport the food.

"Prepared food" in (B) does not include food that is only cut, repackaged, or pasteurized

by the seller, and eggs, fish, meat, poultry, and foods containing these raw animal foods requiring

cooking by the consumer as recommended by the Food and Drug Administration in chapter 3, part

401.11 of its Food Code so as to prevent food borne illnesses.

(iii) "Candy" means a preparation of sugar, honey, or other natural or artificial sweeteners

in combination with chocolate, fruits, nuts, or other ingredients or flavorings in the form of bars,

drops, or pieces. "Candy" shall not include any preparation containing flour and shall require no

refrigeration.

(iv) "Soft drinks" means non-alcoholic beverages that contain natural or artificial

sweeteners. "Soft drinks" do not include beverages that contain milk or milk products, soy, rice,

or similar milk substitutes, or greater than fifty percent (50%) of vegetable or fruit juice by volume.

(v) "Dietary supplement" means any product, other than "tobacco", intended to supplement

the diet that:

(A) Contains one or more of the following dietary ingredients:

1. A vitamin;

2. A mineral;

3. An herb or other botanical;

4. An amino acid;

5. A dietary substance for use by humans to supplement the diet by increasing the total

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 23 of 70)

dietary intake; or

6. A concentrate, metabolite, constituent, extract, or combination of any ingredient

described above; and

(B) Is intended for ingestion in tablet, capsule, powder, softgel, gelcap, or liquid form, or

if not intended for ingestion in such a form, is not represented as conventional food and is not

represented for use as a sole item of a meal or of the diet; and

facts" box found on the label and as required pursuant to 21 C.F.R. § 101.36.

(m) "Food sold through vending machines" means food dispensed from a machine or other

mechanical device that accepts payment.

(n) "Hotel" means every building or other structure kept, used, maintained, advertised as,

or held out to the public to be a place where living quarters are supplied for pay to transient or

permanent guests and tenants and includes a motel.

(i) "Living quarters" means sleeping rooms, sleeping or housekeeping accommodations, or

any other room or accommodation in any part of the hotel, rooming house, or tourist camp that is

available for or rented out for hire in the lodging of guests.

(ii) "Rooming house" means every house, boat, vehicle, motor court, or other structure

kept, used, maintained, advertised, or held out to the public to be a place where living quarters are

supplied for pay to transient or permanent guests or tenants, whether in one or adjoining buildings.

(iii) "Tourist camp" means a place where tents or tent houses, or camp cottages, or cabins

or other structures are located and offered to the public or any segment thereof for human

habitation.

(o) "Lease or rental" means any transfer of possession or control of tangible personal

property for a fixed or indeterminate term for consideration. A lease or rental may include future

options to purchase or extend. Lease or rental does not include:

(i) A transfer of possession or control of property under a security agreement or deferred

payment plan that requires the transfer of title upon completion of the required payments;

(ii) A transfer of possession or control of property under an agreement that requires the

transfer of title upon completion of required payments and payment of an option price does not

exceed the greater of one hundred dollars ($100) or one percent of the total required payments; or

(iii) Providing tangible personal property along with an operator for a fixed or

indeterminate period of time. A condition of this exclusion is that the operator is necessary for the

equipment to perform as designed. For the purpose of this subsection, an operator must do more

than maintain, inspect, or set-up the tangible personal property.

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 24 of 70)

(iv) Lease or rental does include agreements covering motor vehicles and trailers where the

amount of consideration may be increased or decreased by reference to the amount realized upon

sale or disposition of the property as defined in 26 U.S.C. § 7701(h)(1).

(v) This definition shall be used for sales and use tax purposes regardless if a transaction

is characterized as a lease or rental under generally accepted accounting principles, the Internal

Revenue Code, the Uniform Commercial Code, or other provisions of federal, state, or local law.

(vi) This definition will be applied only prospectively from the date of adoption and will

have no retroactive impact on existing leases or rentals. This definition shall neither impact any

existing sale-leaseback exemption or exclusions that a state may have, nor preclude a state from

adopting a sale-leaseback exemption or exclusion after the effective date of the agreement.

(p) "Mobility enhancing equipment" means equipment, including repair and replacement

parts to same, that:

(i) Is primarily and customarily used to provide or increase the ability to move from one

place to another and that is appropriate for use either in a home or a motor vehicle; and

(ii) Is not generally used by persons with normal mobility; and

(iii) Does not include any motor vehicle or equipment on a motor vehicle normally

provided by a motor vehicle manufacturer.

Mobility enhancing equipment does not include durable medical equipment.

(q) "Model 1 Seller" means a seller that has selected a CSP as its agent to perform all the

seller's sales and use tax functions, other than the seller's obligation to remit tax on its own

purchases.

(r) "Model 2 Seller" means a seller that has selected a CAS to perform part of its sales and

use tax functions, but retains responsibility for remitting the tax.

(s) "Model 3 Seller" means a seller that has sales in at least five member states, has total

annual sales revenue of at least five hundred million dollars ($500,000,000), has a proprietary

system that calculates the amount of tax due each jurisdiction, and has entered into a performance

agreement with the member states that establishes a tax performance standard for the seller. As

used in this definition, a seller includes an affiliated group of sellers using the same proprietary

system.

(t) "Prosthetic device" means a replacement, corrective, or supportive device including

repair and replacement parts for same worn on or in the body to:

(i) Artificially replace a missing portion of the body;

(ii) Prevent or correct physical deformity or malfunction; or

(iii) Support a weak or deformed portion of the body.

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 25 of 70)

(u) "Purchaser" means a person to whom a sale of personal property is made or to whom a

service is furnished.

(v) "Purchase price" applies to the measure subject to use tax and has the same meaning as

sales price.

(w) "Seller" means a person making sales, leases, or rentals of personal property or

services.

(x) Specified Digital Products

(i) “Specified digital products” means electronically transferred:

(A) “Digital Audio-Visual Works” which means a series of related images which, when

shown in succession, impart an impression of motion, together with accompanying sounds, if any;

(B) “Digital Audio Works” which means works that result from the fixation of a series of

musical, spoken, or other sounds, including ringtones, and/or;

usual sense as “books”.

(ii) For purposes of the definition of “digital audio works”, “ringtones” means digitized

sound files that are downloaded onto a device and that may be used to alert the customer with

respect to a communication.

(iii) For purposes of the definitions of “specified digital products”, “transferred

electronically” means obtained by the purchaser by means other than tangible storage media.

(xy) "State" means any state of the United States and the District of Columbia.

(yz) "Telecommunications" tax base/exemption terms.

(i) Telecommunication terms shall be defined as follows:

(A) "Ancillary services" means services that are associated with or incidental to the

provision of "telecommunications services", including, but not limited to, "detailed

telecommunications billing", "directory assistance", "vertical service", and "voice mail services".

(B) "Conference bridging service" means an "ancillary service" that links two (2) or more

participants of an audio or video conference call and may include the provision of a telephone

number. "Conference bridging service" does not include the "telecommunications services" used

to reach the conference bridge.

separately stating information pertaining to individual calls on a customer's billing statement.

(D) "Directory assistance" means an "ancillary service" of providing telephone number

information, and/or address information.

(E) "Vertical service" means an "ancillary service" that is offered in connection with one

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 26 of 70)

or more "telecommunications services", which offers advanced calling features that allow

customers to identify callers and to manage multiple calls and call connections, including

"conference bridging services".

(F) "Voice mail service" means an "ancillary service" that enables the customer to store,

send, or receive recorded messages. "Voice mail service" does not include any "vertical services"

that the customer may be required to have in order to utilize the "voice mail service".

(G) "Telecommunications service" means the electronic transmission, conveyance, or

routing of voice, data, audio, video, or any other information or signals to a point, or between or

among points. The term "telecommunications service" includes such transmission, conveyance, or

routing in which computer processing applications are used to act on the form, code, or protocol of

the content for purposes of transmission, conveyance, or routing without regard to whether such

service is referred to as voice over internet protocol services or is classified by the Federal

Communications Commission as enhanced or value added. "Telecommunications service" does

not include:

(1) Data processing and information services that allow data to be generated, acquired,

stored, processed, or retrieved and delivered by an electronic transmission to a purchaser where

such purchaser's primary purpose for the underlying transaction is the processed data or

information;

(2) Installation or maintenance of wiring or equipment on a customer's premises;

(3) Tangible personal property;

(4) Advertising, including, but not limited to, directory advertising;

(5) Billing and collection services provided to third parties;

(6) Internet access service;

(7) Radio and television audio and video programming services, regardless of the medium,

including the furnishing of transmission, conveyance, and routing of such services by the

programming service provider. Radio and television audio and video programming services shall

include, but not be limited to, cable service as defined in 47 U.S.C. § 522(6) and audio and video

programming services delivered by commercial mobile radio service providers as defined in 47

C.F.R. § 20.3;

(8) "Ancillary services"; or

(9) Digital products "delivered electronically", including, but not limited to: software,

music, video, reading materials, or ring tones.

(H) "800 service" means a "telecommunications service" that allows a caller to dial a toll-

free number without incurring a charge for the call. The service is typically marketed under the

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 27 of 70)

name "800", "855", "866", "877", and "888" toll-free calling, and any subsequent numbers

designated by the Federal Communications Commission.

(I) "900 service" means an inbound toll "telecommunications service" purchased by a

subscriber that allows the subscriber's customers to call in to the subscriber's prerecorded

announcement or live service. "900 service" does not include the charge for: collection services

provided by the seller of the "telecommunications services" to the subscriber, or service or product

sold by the subscriber to the subscriber's customer. The service is typically marketed under the

name "900 service," and any subsequent numbers designated by the Federal Communications

Commission.

(J) "Fixed wireless service" means a "telecommunications service" that provides radio

communication between fixed points.

(K) "Mobile wireless service" means a "telecommunications service" that is transmitted,

conveyed, or routed regardless of the technology used, whereby the origination and/or termination

points of the transmission, conveyance, or routing are not fixed, including, by way of example only,

"telecommunications services" that are provided by a commercial mobile radio service provider.

(L) "Paging service" means a "telecommunications service" that provides transmission of

coded radio signals for the purpose of activating specific pagers; such transmissions may include

messages and/or sounds.

(M) "Prepaid calling service" means the right to access exclusively "telecommunications

services", which must be paid for in advance and that enables the origination of calls using an

access number or authorization code, whether manually or electronically dialed, and that is sold in

predetermined units or dollars of which the number declines with use in a known amount.

(N) "Prepaid wireless calling service" means a "telecommunications service" that provides

the right to utilize "mobile wireless service", as well as other non-telecommunications services,

including the download of digital products "delivered electronically", content and "ancillary

services" which must be paid for in advance that is sold in predetermined units of dollars of which

the number declines with use in a known amount.

(O) "Private communications service" means a telecommunications service that entitles the

customer to exclusive or priority use of a communications channel or group of channels between

or among termination points, regardless of the manner in which such channel or channels are

connected, and includes switching capacity, extension lines, stations, and any other associated

services that are provided in connection with the use of such channel or channels.

(P) "Value-added non-voice data service" means a service that otherwise meets the

definition of "telecommunications services" in which computer processing applications are used to

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 28 of 70)

act on the form, content, code, or protocol of the information or data primarily for a purpose other

than transmission, conveyance, or routing.

(ii) "Modifiers of Sales Tax Base/Exemption Terms" -- the following terms can be used to

further delineate the type of "telecommunications service" to be taxed or exempted. The terms

would be used with the broader terms and subcategories delineated above.

(A) "Coin-operated telephone service" means a "telecommunications service" paid for by

inserting money into a telephone accepting direct deposits of money to operate.

(B) "International" means a "telecommunications service" that originates or terminates in

the United States and terminates or originates outside the United States, respectively. United States

includes the District of Columbia or a U.S. territory or possession.

state, or a United States territory or possession, and terminates in a different United States state or

a United States territory or possession.

(D) "Intrastate" means a "telecommunications service" that originates in one United States

state or a United States territory or possession, and terminates in the same United States state or a

United States territory or possession.

(E) "Pay telephone service" means a "telecommunications service" provided through any

pay telephone.

(F) "Residential telecommunications service" means a "telecommunications service" or

"ancillary services" provided to an individual for personal use at a residential address, including an

individual dwelling unit such as an apartment. In the case of institutions where individuals reside,

such as schools or nursing homes, "telecommunications service" is considered residential if it is

provided to and paid for by an individual resident rather than the institution.

The terms "ancillary services" and "telecommunications service" are defined as a broad

range of services. The terms "ancillary services" and "telecommunications service" are broader

than the sum of the subcategories. Definitions of subcategories of "ancillary services" and

"telecommunications service" can be used by a member state alone or in combination with other

subcategories to define a narrower tax base than the definitions of "ancillary services" and

"telecommunications service" would imply. The subcategories can also be used by a member state

to provide exemptions for certain subcategories of the more broadly defined terms.

A member state that specifically imposes tax on, or exempts from tax, local telephone or

local telecommunications service may define "local service" in any manner in accordance with §

44-18.1-28, except as limited by other sections of this Agreement.

(zaa) "Tobacco" means cigarettes, cigars, chewing, or pipe tobacco, or any other item that

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 29 of 70)

contains tobacco.

44-18-7.3. Services defined.

(a) "Services" means all activities engaged in for other persons for a fee, retainer,

commission, or other monetary charge, which activities involve the performance of a service in this

state as distinguished from selling property.

(b) “Service charges” means

(i) the amount paid for the right or privilege to have access to a place or location where any

of the services referenced below are provided; or

(ii) dues paid to any association, club, or organization regardless of the purpose for which

the dues are paid; and/or

(iii) any charges for privileges or facilities, or any initiation fees, defined as any payment,

contribution or loan required as a condition precedent to membership in any association, club or

organization that facilitate the provision of the services noted below above whether or not any such

payment, contribution or loan is evidenced by a certificate of interest or indebtedness or share of

stock.

(bc) The following businesses and services performed in this state, along with the

applicable 2007 2017 North American Industrial Classification System (NAICS) codes, are

included, but not limited to in the definition of services and/or service charges:

(1) Taxicab and limousine services including but not limited to:

(i) Taxicab services including taxi dispatchers (485310); and

(ii) Limousine services (485320).

(2) Other road transportation service including but not limited to:

(i) Charter bus service (485510);

(ii) "Transportation network companies" (TNC) defined as an entity that uses a digital

network to connect transportation network company riders to transportation network operators who

provide prearranged rides. Any TNC operating in this state is a retailer as provided in § 44-18-15

and is required to file a business application and registration form and obtain a permit to make sales

at retail with the tax administrator, to charge, collect, and remit Rhode Island sales and use tax; and

(iii) All other transit and ground passenger transportation (485999).

(3) Pet care services (812910) except veterinary and testing laboratories services.

(4)(i) "Room reseller" or "reseller" means any person, except a tour operator as defined in

§ 42-63.1-2, having any right, permission, license, or other authority from or through a hotel as

defined in § 42-63.1-2, to reserve, or arrange the transfer of occupancy of, accommodations the

reservation or transfer of which is subject to this chapter, such that the occupant pays all or a portion

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 30 of 70)

of the rental and other fees to the room reseller or reseller. Room reseller or reseller shall include,

but not be limited to, sellers of travel packages as defined in this section. Notwithstanding the

provisions of any other law, where said reservation or transfer of occupancy is done using a room

reseller or reseller, the application of the sales and use tax under §§ 44-18-18 and 44-18-20, and

the hotel tax under § 44-18-36.1 shall be as follows: The room reseller or reseller is required to

with said taxes being calculated upon the amount of rental and other fees paid by the occupant to

the room reseller or reseller, less the amount of any rental and other fees paid by the room reseller

or reseller to the hotel. The hotel shall collect and pay to the tax administrator said taxes upon the

amount of rental and other fees paid to the hotel by the room reseller or reseller and/or the occupant.

No assessment shall be made by the tax administrator against a hotel because of an incorrect

remittance of the taxes under this chapter by a room reseller or reseller. No assessment shall be

made by the tax administrator against a room reseller or reseller because of an incorrect remittance

of the taxes under this chapter by a hotel. If the hotel has paid the taxes imposed under this chapter,

the occupant and/or room reseller or reseller, as applicable, shall reimburse the hotel for said taxes.

If the room reseller or reseller has paid said taxes, the occupant shall reimburse the room reseller

or reseller for said taxes. Each hotel and room reseller or reseller shall add and collect, from the

occupant or the room reseller or the reseller, the full amount of the taxes imposed on the rental and

other fees. When added to the rental and other fees, the taxes shall be a debt owed by the occupant

to the hotel or room reseller or reseller, as applicable, and shall be recoverable at law in the same

manner as other debts. The amount of the taxes collected by the hotel and/or room reseller or

reseller from the occupant under this chapter shall be stated and charged separately from the rental

and other fees, and shall be shown separately on all records thereof, whether made at the time the

transfer of occupancy occurs, or on any evidence of the transfer issued or used by the hotel or the

room reseller or the reseller. A room reseller or reseller shall not be required to disclose to the

occupant the amount of tax charged by the hotel; provided, however, the room reseller or reseller

shall represent to the occupant that the separately stated taxes charged by the room reseller or

reseller include taxes charged by the hotel. No person shall operate a hotel in this state, or act as a

room reseller or reseller for any hotel in the state, unless the tax administrator has issued a permit

pursuant to § 44-19-1.

(ii) "Travel package" means a room, or rooms, bundled with one or more other, separate

components of travel such as air transportation, car rental, or similar items, which travel package

is charged to the customer or occupant for a single, retail price. When the room occupancy is

bundled for a single consideration, with other property, services, amusement charges, or any other

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 31 of 70)

items, the separate sale of which would not otherwise be subject to tax under this chapter, the entire

single consideration shall be treated as the rental or other fees for room occupancy subject to tax

under this chapter; provided, however, that where the amount of the rental, or other fees for room

occupancy is stated separately from the price of such other property, services, amusement charges,

or other items, on any sales slip, invoice, receipt, or other statement given the occupant, and such

rental and other fees are determined by the tax administrator to be reasonable in relation to the

value of such other property, services, amusement charges, or other items, only such separately

stated rental and other fees will be subject to tax under this chapter. The value of the transfer of any

room, or rooms, bundled as part of a travel package may be determined by the tax administrator

from the room reseller's and/or reseller's and/or hotel's books and records that are kept in the regular

course of business.

(5) Investigation, Guard, and Armored Car Services (56161 561611, 561612 & 561613).

(6) Hunting, Trapping, and Shooting Services (114210 & 713990).

(i) Exception: Special assessments, as a service charge, that are made for the construction

or reconstruction of any capital addition to any such facility are exempt from the sales and use tax

except that, in the case of any such amount which is not expended for such construction or

reconstruction within three years after the date of payment of the special assessment, the entity that

levied the special assessment, including any successors thereto, shall be liable for the sales and use

tax owed on the unexpended amount.

(7) Lobbying Services as defined in § 42-139.1-3(a)(3) (541820)

(i) Lobbying services do not include such activities when directed at the government of

the United States, another state of the United States other than Rhode Island, or political subdivision

of any other state, or another country.

(8) Interior Design Services (541410)

(9) Commercial Buildings Services (561710, 561720, 561730, 561740, 561790)

(i) “Residential, also referred to as residential unit or dwelling” means a room or rooms,

including a condominium or a room or a dwelling unit that forms part of a single, joint or shared

tenant arrangement in any building, or portion thereof, which is designed, built, and leased to be

occupied for non-commercial use.

(ii) Any entity operating in this state, providing services to real property zoned for and

occupied by both residential and non-residential tenants, is a retailer as provided in §44-18-15 and

is required to file a business application and registration form and obtain a permit to make sales at

retail with the tax administrator, and to charge, collect, and remit Rhode Island sales and use tax

on service charges if more than half of the square footage of the property is used for commercial

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 32 of 70)

purposes.

(iii) Building and dwelling services provided to real property exclusively zoned for and

occupied solely by residential tenants, including home offices, shall be exempt from sales tax.

(cd) All services as defined herein are required to file a business application and registration

form and obtain a permit to make sales at retail with the tax administrator, to charge, collect, and

remit Rhode Island sales and use tax.

(de) The tax administrator is authorized to promulgate rules and regulations in accordance

with the provisions of chapter 35 of title 42 to carry out the provisions, policies, and purposes of

this chapter.

44-18-8. Retail sale or sale at retail defined.

A "retail sale" or "sale at retail" means any sale, lease, or rentals of tangible personal

property, prewritten computer software delivered electronically or by load and leave, vendor-hosted

prewritten computer software, specified digital products, or services as defined in § 44-18-7.3 for

any purpose other than resale, sublease, or subrent in the regular course of business. The sale of

tangible personal property to be used for purposes of rental in the regular course of business is

considered to be a sale for resale. In regard to telecommunications service as defined in § 44-18-

7(9), retail sale does not include the purchase of telecommunications service by a

telecommunications provider from another telecommunication provider for resale to the ultimate

consumer; provided, that the purchaser submits to the seller a certificate attesting to the

applicability of this exclusion, upon receipt of which the seller is relieved of any tax liability for

the sale.

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, vendor-hosted prewritten

computer software, specified digital products, 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 vendor-hosted prewritten computer

software or specified digital products, 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 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

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 33 of 70)

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

owned by the person or others, (iii) prewritten computer software delivered electronically or by

load and leave, (iv) vendor-hosted prewritten computer software, (v) specified digital products, and

(vvi) 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, vendor-hosted prewritten computer

software, and/or specified digital products in this State by means of:

(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

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 34 of 70)

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.

44-18-15.2. "Remote seller" and "remote sale" defined -- Collection of sales and use

tax by remote seller.

(a) As used in this section:

(1) "Remote seller" means a person who makes remote sales in this state. any seller, other

than a marketplace facilitator or referrer, who does not have a physical presence in this state and

makes retail sales to purchasers.

(2) "Remote sale" means a sale into this state for which the seller would not legally be

required to pay, collect, or remit state or local sales and use taxes unless provided by federal law.

(b) Upon passage of any federal law authorizing states to require remote sellers to collect

and remit sales and use taxes, this state will require a remote seller making remote sales in the state

to pay, collect, and remit sales and use taxes at the rate imposed under § 44-18-18, and in

accordance with the provisions of this article, chapters 18.1 and 19 of this title, and applicable

federal law.

44-18-20. Use tax imposed.

(a) An excise tax is imposed on the storage, use, or other consumption in this state of

tangible personal property; prewritten computer software delivered electronically or by load and

leave; vendor-hosted prewritten computer software; specified digital products; or services as

defined in § 44-18-7.3, including a motor vehicle, a boat, an airplane, or a trailer, purchased from

any retailer at the rate of six percent (6%) of the sale price of the property.

(b) An excise tax is imposed on the storage, use, or other consumption in this state of a

motor vehicle, a boat, an airplane, or a trailer purchased from other than a licensed motor vehicle

dealer or other than a retailer of boats, airplanes, or trailers respectively, at the rate of six percent

(6%) of the sale price of the motor vehicle, boat, airplane, or trailer.

defined in § 31-1-5(a) -- (f) and also includes boat trailers, camping trailers, house trailers, and

mobile homes.

(d) Notwithstanding the provisions contained in this section and in § 44-18-21 relating to

the imposition of a use tax and liability for this tax on certain casual sales, no tax is payable in any

casual sale:

(1) When the transferee or purchaser is the spouse, mother, father, brother, sister, or child

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 35 of 70)

of the transferor or seller;

(2) When the transfer or sale is made in connection with the organization, reorganization,

dissolution, or partial liquidation of a business entity, provided:

(i) The last taxable sale, transfer, or use of the article being transferred or sold was subjected

to a tax imposed by this chapter;

(ii) The transferee is the business entity referred to or is a stockholder, owner, member, or

partner; and

(iii) Any gain or loss to the transferor is not recognized for income tax purposes under the

provisions of the federal income tax law and treasury regulations and rulings issued thereunder;

(3) When the sale or transfer is of a trailer, other than a camping trailer, of the type

ordinarily used for residential purposes and commonly known as a house trailer or as a mobile

home; or

(4) When the transferee or purchaser is exempt under the provisions of § 44-18-30 or other

general law of this state or special act of the general assembly of this state.

(e) The term "casual" means a sale made by a person other than a retailer, provided, that in

the case of a sale of a motor vehicle, the term means a sale made by a person other than a licensed

motor vehicle dealer or an auctioneer at an auction sale. In no case is the tax imposed under the

provisions of subsections (a) and (b) of this section on the storage, use, or other consumption in

this state of a used motor vehicle less than the product obtained by multiplying the amount of the

retail dollar value at the time of purchase of the motor vehicle by the applicable tax rate; provided,

that where the amount of the sale price exceeds the amount of the retail dollar value, the tax is

based on the sale price. The tax administrator shall use as his or her guide the retail dollar value as

shown in the current issue of any nationally recognized, used-vehicle guide for appraisal purposes

in this state. On request within thirty (30) days by the taxpayer after payment of the tax, if the tax

administrator determines that the retail dollar value as stated in this subsection is inequitable or

unreasonable, he or she shall, after affording the taxpayer reasonable opportunity to be heard, re-

determine the tax.

(f) Every person making more than five (5) retail sales of tangible personal property or

prewritten computer software delivered electronically or by load and leave, or vendor-hosted

prewritten computer software, or specified digital products, or services as defined in § 44-18-7.3

during any twelve-month (12) period, including sales made in the capacity of assignee for the

benefit of creditors or receiver or trustee in bankruptcy, is considered a retailer within the provisions

of this chapter.

(g)(1) "Casual sale" includes a sale of tangible personal property not held or used by a

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 36 of 70)

seller in the course of activities for which the seller is required to hold a seller's permit or permits

or would be required to hold a seller's permit or permits if the activities were conducted in this

state, provided that the sale is not one of a series of sales sufficient in number, scope, and character

(more than five (5) in any twelve-month (12) period) to constitute an activity for which the seller

is required to hold a seller's permit or would be required to hold a seller's permit if the activity were

conducted in this state.

(2) Casual sales also include sales made at bazaars, fairs, picnics, or similar events by

nonprofit organizations, that are organized for charitable, educational, civic, religious, social,

recreational, fraternal, or literary purposes during two (2) events not to exceed a total of six (6)

days duration each calendar year. Each event requires the issuance of a permit by the division of

taxation. Where sales are made at events by a vendor that holds a sales tax permit and is not a

nonprofit organization, the sales are in the regular course of business and are not exempt as casual

sales.

(h) The use tax imposed under this section for the period commencing July 1, 1990, is at

the rate of seven percent (7%). In recognition of the work being performed by the streamlined sales

and use tax governing board, upon passage of any federal law that authorizes states to require

remote sellers to collect and remit sales and use taxes, effective the first (1st) day of the first (1st)

state fiscal quarter following the change, the rate imposed under § 44-18-18 shall be reduced from

seven percent (7.0%) to six and one-half percent (6.5%). The six and one- half percent (6.5%) rate

shall take effect on the date that the state requires remote sellers to collect and remit sales and use

taxes.

44-18-21. Liability for use tax.

(a) Every person storing, using, or consuming in this state tangible personal property,

including a motor vehicle, boat, airplane, or trailer, purchased from a retailer, and a motor vehicle,

boat, airplane, or trailer, purchased from other than a licensed motor vehicle dealer or other than a

retailer of boats, airplanes, or trailers respectively; or storing, using or consuming specified

prewritten computer software delivered electronically or by load and leave, or vendor-hosted

prewritten computer software, or specified digital products, or services as defined in § 44-18-7.3 is

liable for the use tax. The person's liability is not extinguished until the tax has been paid to this

state, except that a receipt from a retailer engaging in business in this state or from a retailer who

is authorized by the tax administrator to collect the tax under rules and regulations that he or she

may prescribe, given to the purchaser pursuant to the provisions of § 44-18-22, is sufficient to

relieve the purchaser from further liability for the tax to which the receipt refers.

(b) Each person before obtaining an original or transferral registration for any article or

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 37 of 70)

commodity in this state, which article or commodity is required to be licensed or registered in the

state, shall furnish satisfactory evidence to the tax administrator that any tax due under this chapter

with reference to the article or commodity has been paid, and for the purpose of effecting

compliance, the tax administrator, in addition to any other powers granted to him or her, may invoke

the provisions of § 31-3-4 in the case of a motor vehicle. The tax administrator, when he or she

deems it to be for the convenience of the general public, may authorize any agency of the state

concerned with the licensing or registering of these articles or commodities to collect the use tax

on any articles or commodities which the purchaser is required by this chapter to pay before

receiving an original or transferral registration. The general assembly shall annually appropriate a

sum that it deems necessary to carry out the purposes of this section. Notwithstanding the

provisions of §§ 44-18-19, 44-18-22, and 44-18-24, the sales or use tax on any motor vehicle and/or

recreational vehicle requiring registration by the administrator of the division of motor vehicles

shall not be added by the retailer to the sale price or charge but shall be paid directly by the

purchaser to the tax administrator, or his or her authorized deputy or agent as provided in this

section.

hundred twenty (120) days from the date of purchase and upon which the purchaser has paid the

use tax, the amount of the tax constitutes an overpayment. The amount of the overpayment may be

credited against the amount of use tax on any subsequent vehicle which the owner acquires to

replace the lost or destroyed vehicle or may be refunded, in whole or in part.

44-18-22. Collection of use tax by retailer.

Every retailer engaging in business in this state and making sales of tangible personal

property or prewritten computer software delivered electronically or by load and leave, or vendor-

hosted prewritten computer software, or specified digital products, or services as defined in § 44-

18-7.3, for storage, use, or other consumption in this state, not exempted under this chapter shall,

at the time of making the sales, or if the storage, use, or other consumption of the tangible personal

property, prewritten computer software delivered electronically or by load and leave, vendor-hosted

prewritten computer software, or specified digital products, or services as defined in § 44-18-7.3,

is not then taxable under this chapter, at the time the storage, use, or other consumption becomes

taxable, collect the tax from the purchaser and give to the purchaser a receipt in the manner and

form prescribed by the tax administrator.

44-18-23. "Engaging in business" defined.

As used in §§ 44-18-21 and 44-18-22 the term "engaging in business in this state" means

the selling or delivering in this state, or any activity in this state related to the selling or delivering

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 38 of 70)

in this state of tangible personal property or prewritten computer software delivered electronically

or by load and leave, or vendor-hosted prewritten computer software, or specified digital products,

for storage, use, or other consumption in this state; or services as defined in § 44-18-7.3 in this

state. This term includes, but is not limited to, the following acts or methods of transacting business:

(1) Maintaining, occupying, or using in this state permanently or temporarily, directly or

indirectly or through a subsidiary, representative, or agent by whatever name called and whether or

not qualified to do business in this state, any office, place of distribution, sales or sample room or

place, warehouse or storage place, or other place of business;

(2) Having any subsidiary, representative, agent, salesperson, canvasser, or solicitor

permanently or temporarily, and whether or not the subsidiary, representative, or agent is qualified

to do business in this state, operate in this state for the purpose of selling, delivering, or the taking

of orders for any tangible personal property, or prewritten computer software delivered

electronically or by load and leave, or vendor-hosted prewritten computer software, or specified

digital products, or services as defined in § 44-18-7.3;

(3) The regular or systematic solicitation of sales of tangible personal property, or

prewritten computer software delivered electronically or by load and leave, or vendor-hosted

prewritten computer software, or specified digital products, or services as defined in § 44-18-7.3,

in this state by means of:

(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 air space above this state,

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

incorporated or operating 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.

44-18-25. Presumption that sale is for storage, use, or consumption -- Resale

certificate.

It is presumed that all gross receipts are subject to the sales tax, and that the use of all

tangible personal property, or prewritten computer software delivered electronically or by load and

leave, or vendor-hosted prewritten computer software, or specified digital products, or services as

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 39 of 70)

defined in § 44-18-7.3, are subject to the use tax, and that all tangible personal property, or

prewritten computer software delivered electronically or by load and leave, or vendor-hosted

prewritten computer software, or specified digital products, or services as defined in § 44-18-7.3,

sold or in processing or intended for delivery or delivered in this state is sold or delivered for

storage, use, or other consumption in this state, until the contrary is established to the satisfaction

of the tax administrator. The burden of proving the contrary is upon the person who makes the sale

and the purchaser, unless the person who makes the sale takes from the purchaser a certificate to

the effect that the purchase was for resale. The certificate shall contain any information and be in

the form that the tax administrator may require.

SECTION 10. Section 44-18-36.1 of the General Laws in Chapter 44-18 entitled "Sales

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

44-18-36.1. Hotel tax.

(a) There is imposed a hotel tax of five percent (5%) six percent (6%) upon the total

consideration charged for occupancy of any space furnished by any hotel, travel packages, or room

reseller or reseller as defined in § 44-18-7.3(b) in this state. A house, condominium, or other

resident dwelling shall be exempt from the five percent (5%) six percent (6%) hotel tax under this

subsection if the house, condominium, or other resident dwelling is rented in its entirety. The hotel

tax is in addition to any sales tax imposed. This hotel tax is administered and collected by the

division of taxation and unless provided to the contrary in this chapter, all the administration,

collection, and other provisions of chapters 18 and 19 of this title apply. Nothing in this chapter

shall be construed to limit the powers of the convention authority of the city of Providence

established pursuant to the provisions of chapter 84 of the public laws of 1980, except that

distribution of hotel tax receipts shall be made pursuant to chapter 63.1 of title 42 rather than chapter

84 of the public laws of 1980.

(b) There is hereby levied and imposed, upon the total consideration charged for occupancy

of any space furnished by any hotel in this state, in addition to all other taxes and fees now imposed

by law, a local hotel tax at a rate of one percent (1%). The local hotel tax shall be administered and

collected in accordance with subsection (a).

forfeitures, interest, costs of suit and fines shall be distributed at least quarterly, credited and paid

by the state treasurer to the city or town where the space for occupancy that is furnished by the

hotel is located. Unless provided to the contrary in this chapter, all of the administration, collection,

and other provisions of chapters 18 and 19 of this title shall apply.

(d) Notwithstanding the provisions of subsection (a) of this section, the city of Newport

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 40 of 70)

shall have the authority to collect from hotels located in the city of Newport the tax imposed by

subsection (a) of this section.

(1) Within ten (10) days of collection of the tax, the city of Newport shall distribute the tax

as provided in § 42-63.1-3. No later than the first day of March and the first day of September in

each year in which the tax is collected, the city of Newport shall submit to the division of taxation

a report of the tax collected and distributed during the six (6) month period ending thirty (30) days

prior to the reporting date.

(2) The city of Newport shall have the same authority as the division of taxation to recover

delinquent hotel taxes pursuant to chapter 44-19, and the amount of any hotel tax, penalty and

interest imposed by the city of Newport until collected constitutes a lien on the real property of the

taxpayer.

In recognition of the work being performed by the Streamlined Sales and Use Tax

Governing Board, upon any federal law which requires remote sellers to collect and remit taxes,

effective the first (1st) day of the first (1st) state fiscal quarter following the change, the rate

imposed under § 44-18-36.1(b) shall be one and one-half percent (1.5%).

SECTION 11. Effective upon passage unless otherwise specified herein, the title of

Chapter 44-18.2 of the General Laws entitled “Sales and Use Tax – Non-Collecting Retailers,

Referrers, and Retail Sale Facilitators Act” and Sections 44-18.2-2, 44-18.2-3, 44-18.2-4, 44-18.2-

5, and 44-18.2-6 of the General Laws in Chapter 44-18.2 entitled “Sales and Use Tax – Non-

Collecting Retailers, Referrers, and Retail Sale Facilitators Act” is hereby amended to read as

follows: are hereby amended to read as follows:

CHAPTER 44-18.2

Sales and Use Tax – Non-Collecting Retailers, Referrers, and Retail Sale Facilitators Act

CHAPTER 44-18.2

SALES AND USE TAXES – REMOTE SELLERS, REFERRERS, AND

MARKETPLACE FACILITATORS ACT

44-18.2-2. Definitions.

For the purposes of this chapter:

(1) "Division of taxation" means the Rhode Island department of revenue, division of

taxation. The division may also be referred to in this chapter as the "division of taxation", "tax

division", or "division."

(2) "In-state customer" means a person or persons who makes a purchase of tangible

personal property, prewritten computer software delivered electronically or by load and leave as

defined in § 44-18-7.1(g)(v), vendor-hosted prewritten computer software, specified digital

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 41 of 70)

products, and/or taxable services as defined under § 44-18-1 et seq. for use, storage, and/or other

consumption in this state.

(3) "In-state software" means software used by in-state customers on their computers,

smartphones, and other electronic and/or communication devices, including information or

software such as cached files, cached software, or "cookies", or other data tracking tools, that are

stored on property in this state or distributed within this state, for the purpose of purchasing tangible

personal property, prewritten computer software delivered electronically or by load and leave,

vendor-hosted prewritten computer software, specified digital products, and/or taxable services.

(4) “Marketplace” means a physical or electronic place including, but not limited to, a store,

booth, Internet website, catalog, television or radio broadcast, or a dedicated sales software

application where tangible personal property, prewritten computer software delivered

electronically or by load and leave, vendor-hosted prewritten computer software, specified digital

products, and/or taxable services is/are sold or offered for sale for delivery in this state regardless

of whether the tangible personal property, prewritten computer software delivered electronically or

by load and leave, vendor-hosted prewritten computer software, or specified digital products have

a physical presence in the state.

(5) “Marketplace facilitator” means any person or persons that contracts or otherwise

agrees with a marketplace seller to facilitate for consideration, regardless of whether deducted as

fees from the transaction, the sale of the marketplace seller’s products through a physical or

electronic marketplace operated by the person or persons, and engages:

(a) Directly or indirectly, through one or more affiliated persons in any of the following:

(i) Transmitting or otherwise communicating the offer or acceptance between the buyer

and seller;

(ii) Owning or operating the infrastructure, electronic or physical, or technology that brings

buyers and sellers together;

(iii) Providing a virtual currency that buyers are allowed or required to use to purchase

products from the seller; or

(iv) Software development or research and development activities related to any of the

activities described in (b) of this subsection (5), if such activities are directly related to a physical

or electronic marketplace operated by the person or an affiliated person; and

(b) In any of the following activities with respect to the seller’s products:

(i) Payment processing services;

(ii) Fulfillment or storage services;

(iii) Listing products for sale;

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 42 of 70)

(iv) Setting prices;

(v) Branding sales as those of the marketplace facilitator;

(vi) Order taking;

(vii) Advertising or promotion; or

(viii) Providing customer service or accepting or assisting with returns or exchanges.

(6) “Marketplace seller” means a person, not a related party to a marketplace facilitator,

who has an agreement with a marketplace facilitator and makes retail sales of tangible personal

property, prewritten computer software delivered electronically or by load and leave, vendor-hosted

prewritten computer software, specified digital products, and/or taxable services through a

marketplace owned, operated, or controlled by a marketplace facilitator, whether or not such person

is required to register to collect and remit sales tax.

(47) "Non-collecting retailer" means any person or persons who meets at least one of the

following criteria:

(A) Uses in-state software to make sales at retail of tangible personal property, prewritten

computer software delivered electronically or by load and leave, and/or taxable services; or

(B) Sells, leases, or delivers in this state, or participates in any activity in this state in

connection with the selling, leasing, or delivering in this state, of tangible personal property,

prewritten computer software delivered electronically or by load and leave, and/or taxable services

for use, storage, distribution, or consumption within this state. This includes, but shall not be limited

to, any of the following acts or methods of transacting business:

(i) Engaging in, either directly or indirectly through a referrer, retail sale facilitator, or other

third party, direct response marketing targeted at in-state customers. For purposes of this

subsection, direct response marketing includes, but is not limited to, sending, transmitting, or

broadcasting via flyers, newsletters, telephone calls, targeted electronic mail, text messages, social

media messages, targeted mailings; collecting, analyzing and utilizing individual data on in-state

customers; using information or software, including cached files, cached software, or "cookies", or

other data tracking tools, that are stored on property in or distributed within this state; or taking any

other action(s) that use persons, tangible property, intangible property, digital files or information,

or software in this state in an effort to enhance the probability that the person's contacts with a

potential in-state customer will result in a sale to that in-state customer;

(ii) Entering into one or more agreements under which a person or persons who has

physical presence in this state refers, either directly or indirectly, potential in-state customers of

tangible personal property, prewritten computer software delivered electronically or by load and

leave, and/or taxable services to the non-collecting retailer for a fee, commission, or other

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 43 of 70)

consideration whether by an internet-based link or an internet website, or otherwise. An agreement

under which a non-collecting retailer purchases advertisements from a person or persons in this

state to be delivered in this state on television, radio, in print, on the internet or by any other medium

in this state, shall not be considered an agreement under this subsection (ii), unless the

advertisement revenue or a portion thereof paid to the person or persons in this state consists of a

fee, commission, or other consideration that is based in whole or in part upon sales of tangible

personal property, prewritten computer software delivered electronically or by load and leave,

and/or taxable services; or

(iii) Using a retail sale facilitator to sell, lease, or deliver in this state, or participate in any

activity in this state in connection with the selling, leasing, or delivering in this state, of tangible

personal property, prewritten computer software delivered electronically or by load and leave,

and/or taxable services for use, storage, or consumption in this state.

property, prewritten computer software delivered electronically or by load and leave, and/or taxable

services for sale, soliciting, processing orders, fulfilling orders, providing customer service and/or

accepting or assisting with returns or exchanges occurring in this state, regardless of whether that

part of the process has been subcontracted to an affiliate or third party. The sales process for which

the in-state customer is charged not more than the basic charge for shipping and handling as used

in this subsection shall not include shipping via a common carrier or the United States mail;

(D) Offers its tangible personal property, prewritten computer software delivered

electronically or by load and leave, and/or taxable services for sale through one or more retail sale

facilitators that has physical presence in this state;

(E) Is related to a person that has physical presence in this state, and such related person

with a physical presence in this state:

(i) Sells tangible personal property, prewritten computer software delivered electronically

or by load and leave, and/or taxable services that are the same or substantially similar to that sold

by a non-collecting retailer under a business name that is the same or substantially similar to that

of the non-collecting retailer;

(ii) Maintains an office, distribution facility, salesroom, warehouse, storage place, or other

similar place of business in this state to facilitate the delivery of tangible personal property,

prewritten computer software delivered electronically or by load and leave, and/or taxable services

sold by the non-collecting retailer;

(iii) Uses, with consent or knowledge of the non-collecting retailer, trademarks, service

marks, or trade names in this state that are the same or substantially similar to those used by the

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 44 of 70)

non-collecting retailer;

(iv) Delivers or has delivered (except for delivery by common carrier or United States mail

for which the in-state customer is charged not more than the basic charge for shipping and

handling), installs, or assembles tangible personal property in this state, or performs maintenance

or repair services on tangible personal property in this state, which tangible personal property is

sold to in-state customers by the non-collecting retailer;

(v) Facilitates the delivery of tangible personal property purchased from a non-collecting

retailer but delivered in this state by allowing an in-state customer to pick up the tangible personal

property at an office distribution facility, salesroom, warehouse, storage place, or other similar

place of business maintained in this state; or

(vi) Shares management, business systems, business practices, computer resources,

communication systems, payroll, personnel, or other such business resources and activities with

the non-collecting retailer, and/or engages in intercompany transactions with the non-collecting

retailer, either or both of which relate to the activities that establish or maintain the non-collecting

retailer's market in this state.

(F) Any person or persons who meets at least one of the criteria in subsections (47)(A) --

(47)(E) above shall be presumed to be a non-collecting retailer.

(G) The term “non-collecting retailer” will no longer apply to any entity that meets the

definition of this subsection on or after July 1, 2019, at which time such entity shall be classified

as a “remote seller” as referenced in R.I. Gen. Laws § 44-18-15.2.

(58) "Person" means person as defined in § 44-18-6.

(69) "Referrer" means every person who:

(A) Contracts or otherwise agrees with a retailer to list and/or advertise for sale in this state

tangible personal property, prewritten computer software delivered electronically or by load and

leave, vendor-hosted prewritten computer software, specified digital products, and/or taxable

services in any forum, including, but not limited to, a catalog or internet website;

(B) Receives a fee, commission, and/or other consideration from a retailer for the listing

and/or advertisement;

retailer or the retailer's employee, affiliate, or website to complete a purchase; and

(D) Does not collect payments from the in-state customer for the transaction.

(E) A person or persons who engages in the activity set forth in all of the activities set forth

in subsections (69)(A) -- (69)(D) above shall be presumed to be a referrer.

(710) "Related" means:

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 45 of 70)

(A) Having a relationship with the non-collecting retailer within the meaning of the internal

revenue code of 1986 as amended; or

(B) Having one or more ownership relationships and a purpose of having the ownership

relationship is to avoid the application of this chapter.

(811) A "retail sale" or "sale at retail" means any retail sale or sale at retail as defined in §

44-18-8.

(912) "Retail sale facilitator" means any person or persons that facilitates a sale by a retailer

by engaging in the following types of activities:

(A) Using in-state software to make sales at retail of tangible personal property, prewritten

computer software delivered electronically or by load and leave, and/or taxable services; or

(B) Contracting or otherwise agreeing with a retailer to list and/or advertise for sale

tangible personal property, prewritten computer software delivered electronically or by load and

leave, and/or taxable services in any forum, including, but not limited to, a catalog or internet

website; and

collecting payments from the in-state customer and transmitting those payments to a retailer. A

person or persons may be a retail sale facilitator regardless of whether they deduct any fees from

the transaction. The division may define in regulation circumstances under which a retail sale

facilitator shall be deemed to facilitate a retail sale.

(D) A person or persons who engages in the type of activity set forth in subsection (912)(A)

above or both of the types of activities set forth in subsections (912)(B) and (912)(C) above shall

be presumed to be a retail sale facilitator.

(E) The term “retail sale facilitator” will no longer apply to any entity that meets the

definition of this subsection on or after July 1, 2019, at which time such entity shall be classified

as a “marketplace facilitator” as referenced above in R.I. Gen. Laws § 44-18.2-2(5).

(130) A "retailer" means retailer as defined in § 44-18-15.

(14) “Specified digital products” refers to the same term as defined in R.I. Gen. Laws § 44-

18-7.1(x) effective July 1, 2019.

(151) "State" means the State of Rhode Island and Providence Plantations.

(162) "Streamlined agreement" means the Streamlined Sales and Use Tax Agreement as

referenced in § 44-18.1-1 et seq.

(17) “Vendor-hosted prewritten computer software” refers to the same term as defined in

R.I. Gen. Laws § 44-18-7.1(g)(vii) effective October 1, 2018.

44-18.2-3. Requirements for non-collecting retailers, referrers, and retail sale

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 46 of 70)

facilitators.

(A) Except as otherwise provided below in § 44-18.2-4, beginning on the later of July 15,

2017, or two (2) weeks after the enactment of this chapter, and for each tax year thereafter prior to

July 1, 2019, or the effective date of the amendment of this chapter, any non-collecting retailer,

referrer, or retail sale facilitator, as defined in this chapter, that in the immediately preceding

calendar year either:

(i) Has gross revenue from the sale of tangible personal property, prewritten computer

software delivered electronically or by load and leave, and/or has taxable services delivered into

this state equal to or exceeding one hundred thousand dollars ($100,000); or

(ii) Has sold tangible personal property, prewritten computer software delivered

electronically or by load and leave, and/or taxable services for delivery into this state in two

hundred (200) or more separate transactions shall comply with the requirements in subsections

(EF), (FG), and (GH) as applicable.

(B) A non-collecting retailer, as defined in this chapter, shall comply with subsection (EF)

below if it meets the criteria of either subsection (A)(i) or (A)(ii) above.

meets the criteria of either subsection (A)(i) or (A)(ii) above.

(D) A retail sale facilitator, as defined in this chapter, shall comply with subsection (GH)

below if it meets the criteria of either subsection (A)(i) or (A)(ii) above.

(E) Any noncollecting retailer, retail sale facilitator, and/or referrer that is collecting and

remitting sales tax into this state prior to the enactment of this amended chapter, date to be inserted

after enactment, shall be deemed a remote seller and/or a marketplace seller and/or marketplace

facilitator and/or referrer upon amendment of this chapter and shall continue to collect and remit

sales tax. Beginning on ninety (90) days after the enactment of this amended chapter, date to be

inserted after enactment, any remote seller, marketplace seller, marketplace facilitator, and/or

referrer, as defined in this chapter, who is not collecting and remitting sales tax shall comply with

the requirements in subsection (I) if that remote seller, marketplace seller, marketplace facilitator,

and/or referrer, as defined in this chapter has not been collecting or remitting sales tax in this state

and, in the immediately preceding calendar year either:

(i) Has gross revenue from the sale of tangible personal property, prewritten computer

software delivered electronically or by load and leave, vendor-hosted prewritten computer

software, specified digital products, and/or has taxable services delivered into this state equal to or

exceeding one hundred thousand dollars ($100,000); or

(ii) Has sold tangible personal property, prewritten computer software delivered

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 47 of 70)

electronically or by load and leave, vendor-hosted prewritten computer software, specified digital

products, and/or taxable services for delivery into this state in two hundred (200) or more separate

transactions shall comply with the requirements in subsection (I).

(EF) Non-collecting retailer. A non-collecting retailer shall either register in this state for

a permit to make sales at retail and collect and remit sales and use tax on all taxable sales into the

state or:

(1) Post a conspicuous notice on its website that informs in-state customers that sales or

use tax is due on certain purchases made from the non-collecting retailer and that this state requires

the in-state customer to file a sales or use tax return;

(2) At the time of purchase, notify in-state customers that sales or use tax is due on taxable

purchases made from the non-collecting retailer and that the state of Rhode Island requires the in-

state customer to file a sales or use tax return;

(3) Within forty-eight (48) hours of the time of purchase, notify in-state customers in

writing that sales or use tax is due on taxable purchases made from the non-collecting retailer and

that this state requires the in-state customer to file a sales or use tax return reflecting said purchase;

(4) On or before January 31 of each year, including January 31, 2018, for purchases made

in calendar year 2017, send a written notice to all in-state customers who have cumulative annual

taxable purchases from the non-collecting retailer totaling one hundred dollars ($100) or more for

the prior calendar year. The notification shall show the name of the non-collecting retailer, the total

amount paid by the in-state customer to the non-collecting retailer in the previous calendar year,

and, if available, the dates of purchases, the dollar amount of each purchase, and the category or

type of the purchase, including, whether the purchase is exempt or not exempt from taxation in

Rhode Island. The notification shall include such other information as the division may require by

rule and regulation. The notification shall state that the state of Rhode Island requires a sales or use

tax return to be filed and sales or use tax to be paid on certain categories or types of purchases made

by the in-state customer from the non-collecting retailer. The notification shall be sent separately

to all in-state customers by first-class mail and shall not be included with any other shipments or

mailings. The notification shall include the words "Important Tax Document Enclosed" on the

exterior of the mailing; and

(5) Beginning on February 15, 2018, and not later than each February 15 thereafter, a non-

collecting retailer that has not registered in this state for a permit to make sales at retail and collect

and remit sales and use tax on all taxable sales into the state for any portion of the prior calendar

year, shall file with the division on such form and/or in such format as the division prescribes an

attestation that the non-collecting retailer has complied with the requirements of subsections

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 48 of 70)

(EF)(1) – (EF)(4) herein.

(GF) Referrer. At such time during any calendar year, or any portion thereof, that a referrer

receives more than ten thousand dollars ($10,000) from fees, commissions, and/or other

compensation paid to it by retailers with whom it has a contract or agreement to list and/or advertise

for sale tangible personal property, prewritten computer software delivered electronically or by

load and leave, and/or taxable services, said referrer shall within thirty (30) days provide written

notice to all such retailers that the retailers' sales may be subject to this state's sales and use tax.

(GH) Retail sale facilitator. Beginning January 15, 2018, and each year thereafter, a retail

sale facilitator shall provide the division of taxation with:

(i) A list of names and addresses of the retailers for whom during the prior calendar year

the retail sale facilitator collected Rhode Island sales and use tax; and

(ii) A list of names and addresses of the retailers who during the prior calendar year used

the retail sale facilitator to serve in-state customers but for whom the retail sale facilitator did not

collect Rhode Island sales and use tax.

(I) Remote sellers, referrers, and marketplace facilitators. A remote seller, referrer, and

marketplace facilitator shall register in this state for a permit to make sales at retail and collect and

remit sales and use tax on all taxable sales into the state.

(i) A marketplace facilitator shall collect sales and use tax on all sales made through the

marketplace to purchasers in this state whether or not the marketplace seller (1) has or is required

to have a permit to make sales at retail or (2) would have been required to collect and remit sales

and use tax had the sale not been made through the marketplace provider.

(ii) A marketplace facilitator shall certify to its marketplace sellers that it will collect and

remit sales and use tax on sales of taxable items made through the marketplace. A marketplace

seller that accepts a marketplace provider’s collection certificate in good faith may exclude sales

made through the marketplace from the marketplace seller’s returns under Chapters 18 and 19 of

Title 44 of the Rhode Island General Laws.

(iii) A marketplace facilitator with respect to a sale of tangible personal property it

facilitates:

(A) shall have all the obligations and rights of a retailer under Chapters 18 and 19 of Title

44 of the Rhode Island General Laws and under any regulations adopted pursuant thereto,

including, but not limited to, the duty to obtain a certificate of authority, to collect tax, file returns,

remit tax, and the right to accept a certificate or other documentation from a customer substantiating

an exemption or exclusion from tax, the right to receive a refund or credit allowed by law; and (B)

shall keep such records and information and cooperate with the tax administrator to ensure the

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 49 of 70)

proper collection and remittance of tax imposed, collected, or required to be collected under

Chapters 18 and 19 of Title 44 of the Rhode Island General Laws.

(iv) A marketplace facilitator shall be subject to audit by the tax administrator with respect

to all retail sales for which it is required to collect and pay the tax imposed under Chapters 18 and

19 of Title 44 of the Rhode Island General Laws. Where the tax administrator audits the

marketplace facilitator, the tax administrator is prohibited from auditing the marketplace seller for

the same retail sales unless the marketplace facilitator seeks relief under this subsection (iv).

(v) If the marketplace facilitator demonstrates to the tax administrator’s satisfaction that

the marketplace facilitator has made a reasonable effort to obtain accurate information from the

marketplace seller about a retail sale and that the failure to collect and pay the correct amount of

tax imposed under Chapters 18 and 19 of Title 44 of the Rhode Island General Laws was due to

incorrect information provided to the marketplace facilitator by the marketplace seller, then the

marketplace facilitator shall be relieved of liability of the tax for that retail sale. This subsection (v)

does not apply with regard to a retail sale for which the marketplace facilitator is the seller or if the

marketplace facilitator and seller are affiliates. Where the marketplace facilitator is relieved under

this subsection (v), the seller is liable for the tax imposed under Chapters 18 and 19 of Title 44 of

the Rhode Island General Laws.

(vi) A class action may not be brought against a marketplace facilitator on behalf of

purchasers arising from or in any way related to an overpayment of sales or use tax collected by

the marketplace facilitator, regardless of whether such action is characterized as a tax refund claim.

Nothing in this subsection (vi) shall affect a purchaser's right to seek a refund as otherwise allowed

by law.

(HJ) Any person or entity that engages in any activity or activities of a non-collecting

retailer, referrer, and/or retail sale facilitator as defined herein shall be presumed to be a non-

collecting retailer, referrer, and/or retail sale facilitator as applicable even if referred to by another

name or designation. Said person or entity shall be subject to the terms and conditions set forth in

this chapter.

44-18.2-4. Exceptions for referrers and retail sale facilitators.

(A)(i) Notwithstanding the provisions of § 44-18.2-3, no retail sale facilitator shall be

required to comply with the provisions of § 44-18.2-3(GH), for any sale where the retail sale

facilitator within ninety (90) days of the date of the sale has been provided either:

(1) A copy of the retailer's Rhode Island sales tax permit to make sales at retail in this state

or its resale certificate as applicable; or

(2) Evidence of a fully completed Rhode Island or Streamlined agreement sales and use

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 50 of 70)

tax exemption certificate.

(ii) Notwithstanding the provisions of § 44-18.2-3, no referrer shall be required to comply

with the provisions of § 44-18.2-3(FG) for any referral where the referrer within ninety (90) days

of the date of the sale has been provided either:

(1) A copy of the retailer's Rhode Island sales tax permit to make sales at retail in this state

or its resale certificate as applicable; or

(2) Evidence of a fully completed Rhode Island or Streamlined agreement sales and use

tax exemption certificate.

(B) Nothing in this section shall be construed to interfere with the ability of a non-collecting

retailer, referrer, or retail sale facilitator and a retailer to enter into agreements with each other;

provided, however, the terms of said agreements shall not in any way be inconsistent with or

contravene the requirements of this chapter.

2019 or the effective date of the amendment of this chapter.

44-18.2-5. Penalties.

Prior to the effective date of the enactment of the amendment of this chapter, date to be

inserted upon enactment, Aany non-collecting retailer, referrer, or retail sale facilitator that fails to

comply with any of the requirements of this chapter shall be subject to a penalty of ten dollars

($10.00) for each such failure, but not moreless than a total penalty of ten thousand dollars

($10,000) per calendar year. As of July 1, 2019, or prior to the effective date of the enactment of

the amendment of this chapter, date to be inserted upon enactment, any remote seller, referrer, or

marketplace facilitator that fails to comply with any of the requirements of this chapter shall be

subject to a penalty of ten dollars ($10.00) for each such failure, but not less than a total penalty of

ten thousand dollars ($10,000) per calendar year. Each instance of failing to comply with the

requirements of this chapter shall constitute a separate violation for purposes of calculating the

penalty under this section. This penalty shall be in addition to any other applicable penalties under

title 44.

44-18.2-6. Other obligations.

(A) Nothing in this section affects the obligation of any in-state customer to remit use tax

as to any applicable transaction in which the seller, non-collecting retailer, or retail sale facilitator,

remote seller, marketplace seller, marketplace facilitator or referrer has not collected and remitted

the sales tax for said transaction.

(B) Nothing in this chapter shall be construed as relieving any other person or entity

otherwise required to collect and remit sales and use tax under applicable Rhode Island law from

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 51 of 70)

continuing to do so.

person, persons, or entity shall have a cause of action against the person that collected and remitted

the sales and use tax pursuant to this chapter.

SECTION 12. Effective October 1, 2019, Section 44-19-7 of the General Laws in Chapter

44-19 entitled "Sales and Use Taxes - Enforcement and Collection" is hereby amended to read as

follows:

44-19-7. Registration of retailers.

Every retailer selling tangible personal property or prewritten computer software delivered

electronically or by load and leave or vendor-hosted prewritten computer software or specified

digital products for storage, use, or other consumption in this state, as well as services as defined

in § 44-18-7.3, in this state, or renting living quarters in any hotel as defined in § 42-63.1-2, rooming

house, or tourist camp in this state must register with the tax administrator and give the name and

address of all agents operating in this state, the location of all distribution or sales houses or offices,

or of any hotel as defined in § 42-63.1-2, rooming house, or tourist camp or other places of business

in this state, and other information that the tax administrator may require.

SECTION 13. The title and Sections 44-20-1, 44-20-2, 44-20-3, 44-20-4, 44-20-5, and 44-

20-8.2 of the General Laws in Chapter 44-20 entitled “Cigarette and Other Tobacco Products Tax”

are hereby amended to read as follows:

CHAPTER 20

CIGARETTE, OTHER TOBACCO PRODUCTS, AND E-LIQUID PRODUCTS TAX

44-20-1. Definitions.

Whenever used in this chapter, unless the context requires otherwise:

(1) "Administrator" means the tax administrator;

(2) "Cigarettes" means and includes any cigarettes suitable for smoking in cigarette form,

and each sheet of cigarette rolling paper, including but not limited to, paper made into a hollow

cylinder or cone, made with paper or any other material, with or without a filter suitable for use in

making cigarettes;

(3) "Dealer" means any person whether located within or outside of this state, who sells or

distributes cigarettes and/or other tobacco products and/or electronic nicotine-delivery system

products to a consumer in this state;

(4) “E-liquid” and “e-liquid products” mean: any liquid or substance placed in or sold for

use in an electronic nicotine-delivery system which generally utilizes a heating element that

vaporizes or combusts a liquid or other substance containing nicotine or nicotine derivative:

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 52 of 70)

(a) whether the liquid or substance contains nicotine or a nicotine derivative; or,

(b) whether sold separately or sold in combination with a personal vaporizer, electronic

nicotine delivery system or an electronic inhaler.

(5) "Electronic nicotine-delivery system products" means an electronic device that may be

used to simulate smoking in the delivery of nicotine or other substance to a person inhaling from

the device, and includes, but is not limited to, an electronic cigarette, electronic cigar, electronic

cigarillo, electronic pipe, electronic hookah, or e-liquid, or any related device or any cartridge or

other component of such device. Electronic nicotine-delivery system products shall not include

Hemp-derived consumable CBD products as defined in 44-49.1-2.

(46) "Distributor" means any person:

(A) Whether located within or outside of this state, other than a dealer, who sells or

distributes cigarettes and/or other tobacco products and/or electronic nicotine-delivery system

products within or into this state. Such term shall not include any cigarette or other tobacco product

manufacturer, export warehouse proprietor, or importer with a valid permit under 26 U.S.C. § 5712,

if such person sells or distributes cigarettes and/or other tobacco products and/or electronic

nicotine-delivery system products in this state only to licensed distributors, or to an export

warehouse proprietor or another manufacturer with a valid permit under 26 U.S.C. § 5712;

(B) Selling cigarettes and/or other tobacco products and/or electronic nicotine-delivery

system products directly to consumers in this state by means of at least twenty-five (25) vending

machines;

products and/or electronic nicotine-delivery system products and/or any person engaged in the

business of selling cigarettes and/or other tobacco products and/or electronic nicotine-delivery

system products to dealers, or to other persons, for the purpose of resale only; provided, that

seventy-five percent (75%) of all cigarettes and/or other tobacco products and/or electronic

nicotine-delivery system products sold by that person in this state are sold to dealers or other

persons for resale and selling cigarettes and/or other tobacco products and/or electronic nicotine-

delivery system products directly to at least forty (40) dealers or other persons for resale; or

(D) Maintaining one or more regular places of business in this state for that purpose;

provided, that seventy-five percent (75%) of the sold cigarettes and/or other tobacco products

and/or electronic nicotine-delivery system products are purchased directly from the manufacturer

and selling cigarettes and/or other tobacco products and/or electronic nicotine-delivery system

products directly to at least forty (40) dealers or other persons for resale;

(57) "Importer" means any person who imports into the United States, either directly or

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 53 of 70)

indirectly, a finished cigarette or other tobacco product and/or electronic nicotine-delivery system

product for sale or distribution;

(68) "Licensed", when used with reference to a manufacturer, importer, distributor or

dealer, means only those persons who hold a valid and current license issued under § 44-20-2 for

the type of business being engaged in. When the term "licensed" is used before a list of entities,

such as "licensed manufacturer, importer, wholesale dealer, or retailer dealer," such term shall be

deemed to apply to each entity in such list;

(79) "Manufacturer" means any person who manufactures, fabricates, assembles,

processes, or labels a finished cigarette and/or other tobacco products and/or electronic nicotine-

delivery system products;

(810) "Other tobacco products" (OTP) means any cigars (excluding Little Cigars, as

defined in § 44-20.2-1, which are subject to cigarette tax), cheroots, stogies, smoking tobacco

(including granulated, plug cut, crimp cut, ready rubbed and any other kinds and forms of tobacco

suitable for smoking in a pipe or otherwise), chewing tobacco (including Cavendish, twist, plug,

scrap and any other kinds and forms of tobacco suitable for chewing), any and all forms of hookah,

shisha and "mu'assel" tobacco, snuff, and shall include any other articles or products made of or

containing tobacco, in whole or in part, or any tobacco substitute, except cigarettes;

(911) "Person" means any individual, including an employee or agent, firm, fiduciary,

partnership, corporation, trust, or association, however formed;

(1012) "Pipe" means an apparatus made of any material used to burn or vaporize products

so that the smoke or vapors can be inhaled or ingested by the user;

(1113) "Place of business" means any location where cigarettes and/or other tobacco

products and/or electronic nicotine-delivery system products are sold, stored, or kept, including,

but not limited to; any storage room, attic, basement, garage or other facility immediately adjacent

to the location. It also includes any receptacle, hide, vessel, vehicle, airplane, train, or vending

machine;

(1214) "Sale" or "sell" means gifts, exchanges, and barter of cigarettes and/or other tobacco

products and/or electronic nicotine-delivery system products. The act of holding, storing, or

keeping cigarettes and/or other tobacco products and/or electronic nicotine-delivery system

products at a place of business for any purpose shall be presumed to be holding the cigarettes and/or

other tobacco products and/or electronic nicotine-delivery system products for sale. Furthermore,

any sale of cigarettes and/or other tobacco products and/or electronic nicotine-delivery system

products by the servants, employees, or agents of the licensed dealer during business hours at the

place of business shall be presumed to be a sale by the licensee;

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 54 of 70)

(1315) "Stamp" means the impression, device, stamp, label, or print manufactured, printed,

or made as prescribed by the administrator to be affixed to packages of cigarettes, as evidence of

the payment of the tax provided by this chapter or to indicate that the cigarettes are intended for a

sale or distribution in this state that is exempt from state tax under the provisions of state law; and

also includes impressions made by metering machines authorized to be used under the provisions

of this chapter.

44-20-2. Importer, distributor, and dealer licenses required -- Licenses required.

Each person engaging in the business of selling cigarette and/or any tobacco products

and/or any electronic nicotine-delivery system products in this state, including any distributor or

dealer, shall secure a license from the administrator before engaging in that business, or continuing

to engage in it. A separate application and license is required for each place of business operated

by a distributor or dealer; provided, that an operator of vending machines for cigarette products is

not required to obtain a distributor's license for each machine. If the applicant for a license does not

have a place of business in this state, the license shall be issued for such applicant's principal place

of business, wherever located. A licensee shall notify the administrator within thirty (30) days in

the event that it changes its principal place of business. A separate license is required for each class

of business if the applicant is engaged in more than one of the activities required to be licensed by

this section. No person shall maintain or operate or cause to be operated a vending machine for

cigarette products without procuring a dealer's license for each machine.

44-20-3. Penalties for unlicensed business.

Any distributor or dealer who sells, offers for sale, or possesses with intent to sell, cigarettes

and/or any other tobacco products and/or any electronic nicotine-delivery system products without

a license as provided in § 44-20-2, shall be guilty of a misdemeanor, and shall be fined not more

than ten thousand dollars ($10,000) for each offense, or be imprisoned for a term not to exceed one

(1) year, or be punished by both a fine and imprisonment. Any electronic nicotine-delivery system

products distributor or dealer licensed by the Department of Health pursuant to Chapter 1 of Title

23 of the Rhode Island General Laws as of the effective date of the transfer of licensing of electronic

nicotine-delivery system products distributors and dealers under this chapter shall be considered

licensed for purposes of compliance with this chapter until the renewal of that license immediately

following the enactment of this chapter.

44-20-4. Application for license -- Display.

All licenses are issued by the tax administrator upon approval of application, stating, on

forms prescribed by the tax administrator, the information he or she may require for the proper

administration of this chapter. Each application for an importer's, or distributor's license shall be

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 55 of 70)

accompanied by a fee of one thousand dollars ($1,000); provided, that for a distributor who does

not affix stamps, the fee shall be one two hundred fifty dollars ($100250.00); each application for

a dealer's license shall be accompanied by an application fee of twenty-seventy-five dollars

($275.00) and a license fee of two-hundred and fifty dollars ($250.00). Each issued license shall

be prominently displayed on the premises within this state, if any, covered by the license. In the

instance of an application for a distributor's license, the administrator shall require, in addition to

other information as may be deemed necessary, the filing of affidavits from three (3) cigarette

manufacturers with national distribution stating that the manufacturer will supply the distributor if

the applicant is granted a license.

44-20-5. Duration of importer's and dealer's licenses -- Renewal.

(a) Any importer license and any license issued by the tax administrator authorizing a

dealer to sell cigarettes and/or other tobacco products and/or electronic nicotine-delivery system

products in this state shall expire at midnight on June 30 next succeeding the date of issuance unless

(1) suspended or revoked by the tax administrator, (2) the business with respect to which the license

was issued changes ownership, (3) the importer or dealer ceases to transact the business for which

the license was issued, or (4) after a period of time set by the administrator; provided such period

of time shall not be longer than three (3) years, in any of which cases the license shall expire and

terminate and the holder shall immediately return the license to the tax administrator.

(b) Every holder of a dealer's license shall annually, on or before February 1 of each year,

renew its license by filing an application for renewal along with twenty-five two hundred fifty

dollars ($25.00) ($250.00) renewal fee. The renewal license is valid for the period July 1 of that

calendar year through June 30 of the subsequent calendar year.

44-20-8.2. Transactions only with licensed manufacturers, importers, distributors,

and dealers.

A manufacturer or importer may sell or distribute cigarettes and/or other tobacco products,

electronic nicotine-delivery system products and/or e-liquid products to a person located or doing

business within this state, only if such person is a licensed importer or distributor. An importer may

obtain cigarettes and/or other tobacco products and/or e-liquid products only from a licensed

manufacturer. A distributor may sell or distribute cigarettes and/or other tobacco products and/or

e-liquid products to a person located or doing business within this state, only if such person is a

licensed distributor or dealer. A distributor may obtain cigarettes and/or other tobacco products

and/or e-liquid products only from a licensed manufacturer, importer, or distributor. A dealer may

obtain cigarettes and/or other tobacco products and/or e-liquid products only from a licensed

distributor. Any smoking bar as defined in 23-20.10-2(20) shall be exempt from the requirement in

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 56 of 70)

this section only with respect to other tobacco products.

SECTION 14. Effective August 1, 2019, Sections 44-20-12, 44-20-12.7, and, 44-20-13 of

the General Laws in Chapter 44-20 entitled "Cigarette and Other Tobacco Products Tax" are hereby

amended to read as follows:

44-20-12. Tax imposed on cigarettes sold.

A tax is imposed on all cigarettes sold or held for sale in the state. The payment of the tax

to be evidenced by stamps, which may be affixed only by licensed distributors to the packages

containing such cigarettes. Any cigarettes on which the proper amount of tax provided for in this

chapter has been paid, payment being evidenced by the stamp, is not subject to a further tax under

this chapter. The tax is at the rate of two hundred twelve and one-half (212.5) two hundred twenty-

five (225) mills for each cigarette.

44-20-12.7. Floor stock tax on cigarettes and stamps.

(a) Each person engaging in the business of selling cigarettes at retail in this state shall pay

a tax or excise to the state for the privilege of engaging in that business during any part of the

calendar year 2019. In calendar year 2019, the tax shall be measured by the number of cigarettes

held by the person in this state at 12:01 a.m. on August 1, 2019 and is computed at the rate of twelve

and one half (12.5) mills for each cigarette on August 1, 2019.

(b) Each distributor licensed to do business in this state pursuant to this chapter shall pay a

tax or excise to the state for the privilege of engaging in that business during any part of the calendar

year 2019. The tax is measured by the number of stamps, whether affixed or to be affixed to

packages of cigarettes, as required by § 44-20-28. In calendar year 2019 the tax is measured by the

number of stamps, whether affixed or to be affixed, held by the distributor at 12:01 a.m. on August

1, 2019, and is computed at the rate of twelve and one half (12.5) mills per cigarette in the package

to which the stamps are affixed or to be affixed.

August 15, 2019, file a return, under oath or certified under the penalties of perjury, with the tax

administrator on forms furnished by him or her, showing the amount of cigarettes and the number

of stamps in that person's possession in this state at 12:01 a.m. on August 1, 2019, as described in

this section above, and the amount of tax due, and shall at the time of filing the return pay the tax

to the tax administrator. Failure to obtain forms shall not be an excuse for the failure to make a

return containing the information required by the tax administrator.

(d) The tax administrator may prescribe rules and regulations, not inconsistent with law

regarding the assessment and collection of the tax imposed by this section.

44-20-13. Tax imposed on unstamped cigarettes.

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 57 of 70)

A tax is imposed at the rate of two hundred twelve and one-half (212.5) two hundred

twenty-five (225) mills for each cigarette upon the storage or use within this state of any cigarettes

not stamped in accordance with the provisions of this chapter in the possession of any consumer

within this state.

SECTION 15. Effective August 1, 2019 unless otherwise specified herein, Section 44-20-

13.2 of the General Laws in Chapter 44-20 entitled "Cigarette and Other Tobacco Products Tax" is

hereby amended to read as follows:

44-20-13.2. Tax imposed on other tobacco products, smokeless tobacco, cigars, and

pipe tobacco products, and e-liquid products.

(a) A tax is imposed on all other tobacco products, smokeless tobacco, cigars, and pipe

tobacco products, and e-liquid products sold, or held for sale in the state by any person, the payment

of the tax to be accomplished according to a mechanism established by the administrator, division

of taxation, department of revenue. The tax imposed by this section shall be as follows:

(1) At the rate of eighty percent (80%) of the wholesale cost of other tobacco products,

cigars, pipe tobacco products, and smokeless tobacco other than snuff.

(2) Notwithstanding the eighty percent (80%) rate in subsection (a) above, in the case of

cigars, the tax shall not exceed fifty eighty cents ($.850) for each cigar.

(3) At the rate of one dollar ($1.00) per ounce of snuff, and a proportionate tax at the like

rate on all fractional parts of an ounce thereof. Such tax shall be computed based on the net weight

as listed by the manufacturer; provided, however, that any product listed by the manufacturer as

having a net weight of less than 1.2 ounces shall be taxed as if the product has a net weight of 1.2

ounces.

(4) Effective September 1, 2019, at the rate of forty percent (40%) of the wholesale cost of

e-liquid products as defined herein.

(b) Any dealer having in his or her possession any other tobacco products with respect to

the storage or use of which a tax is imposed by this section shall, within five (5) days after coming

into possession of the other tobacco products in this state, file a return with the tax administrator in

a form prescribed by the tax administrator. The return shall be accompanied by a payment of the

amount of the tax shown on the form to be due. Any smoking bar as defined in 23-20.10-2(20)

having in his or her possession any other tobacco products with respect to the storage or use of

which a tax is imposed by this section shall, within five (5) days after coming into possession of

the other tobacco products in this state, file a return with the tax administrator in a form prescribed

by the tax administrator. The return shall be accompanied by a payment of the amount of the tax

shown on the form to be due. Records required under this section shall be preserved on the premises

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 58 of 70)

described in the relevant license in such a manner as to ensure permanency and accessibility for

inspection at reasonable hours by authorized personnel of the administrator.

SECTION 16. Effective September 1, 2019, Sections 44-20-15, 44-20-33, 44-20-35, 44-

20-40, 44-20-40.1, 44-20-43, 44-20-45, 44-20-47 and 44-20-51.1 of the General Laws in Chapter

44-20 entitled "Cigarette and Other Tobacco Products Tax" are hereby amended to read as follows:

44-20-15. Confiscation of contraband cigarettes, other tobacco products, e-liquid

products, and other property.

(a) All cigarettes, and other tobacco products, and/or e-liquid products that are held for sale

or distribution within the borders of this state in violation of the requirements of this chapter are

declared to be contraband goods and may be seized by the tax administrator or his or her agents, or

employees, or by any sheriff, or his or her deputy, or any police officer when directed by the tax

administrator to do so, without a warrant. All contraband goods seized by the state under this

chapter shall be destroyed.

(b) All fixtures, equipment, and all other materials and personal property on the premises

of any distributor or dealer who, with the intent to defraud the state, fails to keep or make any

record, return, report, or inventory; keeps or makes any false or fraudulent record, return, report, or

inventory required by this chapter; refuses to pay any tax imposed by this chapter; or attempts in

any manner to evade or defeat the requirements of this chapter shall be forfeited to the state.

44-20-33. Sale of contraband cigarettes, or contraband other tobacco products or

contraband e-liquid products prohibited.

No distributor shall sell, and no other person shall sell, offer for sale, display for sale, or

possess with intent to sell any contraband other tobacco products without written record of the

payment of tax imposed by this chapter, or contraband e-liquid products without written record of

the payment of tax imposed by this chapter or contraband cigarettes, the packages or boxes of which

do not bear stamps evidencing the payment of the tax imposed by this chapter.

44-20-35. Penalties for violations as to unstamped contraband cigarettes, or

contraband other tobacco products, or contraband e-liquid products..

(a) Any person who violates any provision of §§ 44-20-33 and 44-20-34 shall be fined or

imprisoned, or both fined and imprisoned, as follows:

(1) For a first offense in a twenty-four-month (24) period, fined not more than ten (10)

times the retail value of the contraband cigarettes, contraband e-liquid products and/or contraband

other tobacco products, or be imprisoned not more than one (1) year, or be both fined and

imprisoned;

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 59 of 70)

(2) For a second or subsequent offense in a twenty-four-month (24) period, fined not more

than twenty-five (25) times the retail value of the contraband cigarettes, contraband e-liquid

products and/or contraband other tobacco products, or be imprisoned not more than three (3) years,

or be both fined and imprisoned.

(b) When determining the amount of a fine sought or imposed under this section, evidence

of mitigating factors, including history, severity, and intent shall be considered.

44-20-40. Records -- Investigation and inspection of books, premises and stock.

(a) Each manufacturer, importer, distributor, and dealer shall maintain copies of invoices

or equivalent documentation for, or itemized for, each of its facilities for each transaction (other

than a retail transaction with a consumer) involving the sale, purchase, transfer, consignment, or

receipt of cigarettes, other tobacco products and e-liquid products. The invoices or documentation

shall show the name and address of the other party and the quantity by brand style of the cigarettes,

other tobacco products and contraband e-liquid products involved in the transaction. All records

and invoices required under this section must be safely preserved for three (3) years in a manner to

insure permanency and accessibility for inspection by the administrator or his or her authorized

agents.

(b) Records required under this section shall be preserved on the premises described in the

relevant license in such a manner as to ensure permanency and accessibility for inspection at

reasonable hours by authorized personnel of the administrator. With the administrator's permission,

persons with multiple places of business may retain centralized records, but shall transmit

duplicates of the invoices or the equivalent documentation to each place of business within twenty-

four (24) hours upon the request of the administrator or his or her designee.

reports and records of any manufacturer, importer, distributor or dealer in this state for the purpose

of determining whether taxes imposed by this chapter have been fully paid, and may investigate

the stock of cigarettes, other tobacco products and/or electronic nicotine-delivery system products

in or upon any premises for the purpose of determining whether the provisions of this chapter are

being obeyed. The administrator in his or her sole discretion may share the records and reports

required by such sections with law enforcement officials of the federal government or other states.

44-20-40.1. Inspections.

(a) The administrator or his or her duly authorized agent shall have authority to enter and

inspect, without a warrant during normal business hours, and with a warrant during nonbusiness

hours, the facilities and records of any manufacturer, importer, distributor, or dealer.

(b) In any case where the administrator or his or her duly authorized agent, or any police

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 60 of 70)

officer of this state, has knowledge or reasonable grounds to believe that any vehicle is transporting

cigarettes, or other tobacco products or contraband e-liquid products in violation of this chapter,

the administrator, such agent, or such police officer, is authorized to stop such vehicle and to inspect

the same for contraband cigarettes, or contraband other tobacco products or contraband e-liquid

products.

44-20-43. Violations as to reports and records.

Any person who fails to submit the reports required in this chapter or by the tax

administrator under this chapter, or who makes any incomplete, false, or fraudulent report, or who

refuses to permit the tax administrator or his or her authorized agent to examine any books, records,

papers, or stocks of cigarettes, or other tobacco products or electronic nicotine-delivery system

products as provided in this chapter, or who refuses to supply the tax administrator with any other

information which the tax administrator requests for the reasonable and proper enforcement of the

provisions of this chapter, shall be guilty of a misdemeanor punishable by imprisonment up to one

(1) year, or a fine of not more than five thousand dollars ($5,000), or both, for the first offense, and

for each subsequent offense, shall be fined not more than ten thousand dollars ($10,000), or be

imprisoned not more than five (5) years, or both.

44-20-45. Importation of cigarettes, and/or other tobacco products, and/or e-liquid

products with intent to evade tax.

Any person, firm, corporation, club, or association of persons who or that orders any

cigarettes, and/or other tobacco products, and/or electronic nicotine-delivery system products for

another; or pools orders for cigarettes, and/or other tobacco products, and/or electronic nicotine-

delivery system products from any persons; or conspires with others for pooling orders; or receives

in this state any shipment of contraband cigarettes, and/or contraband other tobacco products,

and/or contraband e-liquid products on which the tax imposed by this chapter has not been paid,

for the purpose and intention of violating the provisions of this chapter or to avoid payment of the

tax imposed in this chapter, is guilty of a felony and shall be fined one hundred thousand dollars

($100,000) or five (5) times the retail value of the cigarettes, other tobacco products, and/or e-liquid

products involved, whichever is greater, or imprisoned not more than fifteen (15) years, or both.

44-20-47. Hearings by tax administrator.

Any person aggrieved by any action under this chapter of the tax administrator or his or

her authorized agent for which a hearing is not elsewhere provided may apply to the tax

administrator, in writing, within thirty (30) days of the action for a hearing, stating the reasons why

the hearing should be granted and the manner of relief sought. The tax administrator shall notify

the applicant of the time and place fixed for the hearing. After the hearing, the tax administrator

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 61 of 70)

may make the order in the premises as may appear to the tax administrator just and lawful and shall

furnish a copy of the order to the applicant. The tax administrator may, by notice in writing, at any

time, order a hearing on his or her own initiative and require the taxpayer or any other individual

whom the tax administrator believes to be in possession of information concerning any

manufacture, importation, or sale of; cigarettes, other tobacco products, and/or e-liquid products to

appear before the tax administrator or his or her authorized agent with any specific books of

account, papers, or other documents, for examination relative to the hearing.

44-20-51.1. Civil penalties.

(a) Whoever omits, neglects, or refuses to comply with any duty imposed upon him/her by

this chapter, or to do, or cause to be done, any of the things required by this chapter, or does

anything prohibited by this chapter, shall, in addition to any other penalty provided in this chapter,

be liable as follows:

(1) For a first offense in a twenty-four-month (24) period, a penalty of not more than ten

(10) times the retail value of the cigarettes, and/or other tobacco products and/or e-liquid products

involved; and

(2) For a second or subsequent offense in a twenty-four-month (24) period, a penalty of

not more than twenty-five (25) times the retail value of the cigarettes, and/or other tobacco products

and/or contraband e-liquid products involved.

(b) Whoever fails to pay any tax imposed by this chapter at the time prescribed by law or

regulations, shall, in addition to any other penalty provided in this chapter, be liable for a penalty

of one thousand dollars ($1,000) or not more than five (5) times the tax due but unpaid, whichever

is greater.

evidence of mitigating or aggravating factors, including history, severity, and intent, shall be

considered.

SECTION 17. Sections 44-44-3 and 44-44-3.7 of the General Laws in Chapter 44-44

entitled "Taxation of Beverage Containers, Hard-to-Dispose Material and Litter Control

Participation Permittee" are hereby amended to read as follows:

44-44-3. Imposition of tax on beverage containers.

There shall be levied and imposed a tax of four cents ($0.04) eight cents ($0.08) on each

case of beverage containers sold by a beverage wholesaler to a beverage retailer or consumer within

this state. The tax shall be collected by the beverage wholesaler. The tax provided for in this section

shall not be levied, imposed, or collected on reusable and refillable beverage containers.

44-44-3.7. Imposition of tax on hard-to-dispose material.

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 62 of 70)

(a) There shall be levied and imposed a tax of five cents ($0.05) ten cents ($0.10) per quart

(32 oz.) or five and 3/10th cents ($0.053) ten and 6/10 cents ($0.106) per liter on lubricating oils,

ten cents ($0.10) twenty cents ($0.20) per gallon or two and 64/100th cents ($0.0264) five and

28/100th cents ($0.0528) per liter on antifreeze, one fourth of one cent ($.0025) one half cent

($0.005) per gallon or 66/10,000ths cents ($.00066) one hundred thirty two thousandths ($0.00132)

per liter on organic solvents, and fifty cents ($.50) one dollar ($1.00) per tire as defined above. The

tax shall be separately stated and collected upon the sale by the hard-to-dispose material

wholesalers to a hard-to-dispose material retailer. In the case of new motor vehicles, a fee of three

dollars ($3.00) six dollars ($6.00) per vehicle shall be levied and paid to the division of motor

vehicles in conjunction with titling of the vehicle. Every hard-to-dispose material retailer selling,

using, or otherwise consuming in this state any hard-to-dispose material is liable for the tax imposed

by this section. Its liability is not extinguished until the tax has been paid to the state, except that a

receipt from a hard-to-dispose material wholesaler engaging in business in this state or from a hard-

to-dispose material wholesaler who is authorized by the tax administrator to collect the tax under

rules and regulations that he or she may prescribe given to the hard-to-dispose material retailer is

sufficient to relieve the hard-to-dispose material retailer from further liability for the tax to which

the receipt refers.

(b) In the event that a person purchases hard-to-dispose material for its own use or

consumption and not for resale from a hard-to-dispose material wholesaler or retailer not engaged

in business in this state or not authorized by the tax administrator to collect the tax, that person

shall be liable for the tax imposed by this section.

SECTION 18. Effective October 1, 2019, Title 44 of the General Laws entitled

"TAXATION" is hereby amended by adding thereto the following chapter:

CHAPTER 70

FIREARMS AND FIREARM AMMUNITION EXCISE TAX

44-70-1. Short title.

Chapter 70 of this title may be known and cited as the "Firearm and Firearm Ammunition

Excise Tax Act".

44-70-2. Definitions.

The following words, terms, and phrases, when used in this chapter, shall have the

meanings ascribed to them in this Section, except where the context clearly indicates a different

meaning:

(a) “Firearm” shall have the same meaning as set forth in 18 U.S. Code § 921(a)(3).

(b) “Firearm ammunition” shall have the same meaning as “Ammunition” as set forth in

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 63 of 70)

18 U.S. Code § 921(a)(17)(A).

(d) Tax Administrator means the tax administrator within the department of revenue for

the State

(e) "Person" means person as defined in § 44-18-6.

(f) “Purchaser” means any person who purchases a firearm or firearm ammunition in a

retail purchase in the State of Rhode Island.

(g) “Retail dealer” or “retailer” means any person who engages in the business of selling

firearms or firearm ammunition on a retail level in the State or to a person in the State, as defined

in § 44-18-15

(h) “Retail purchase” means any transaction in which a person in the State acquires

ownership by tendering consideration on a retail level.

44-70-3. Rules and Regulations.

The tax administrator may promulgate rules and regulations, not inconsistent with law, to

carry into effect the provisions of this chapter.

44-70-4. Collection of tax by retailer.

Every retailer engaging in business in this state and making sales of Firearms or Firearm

Ammunition, for storage, use, or other consumption in this state, not exempted under this chapter

shall, at the time of making the sales, or if the storage, use, or other consumption of the tangible

personal property is not then taxable under this chapter, at the time the storage, use, or other

consumption becomes taxable, collect the tax from the purchaser and give to the purchaser a receipt

in the manner and form prescribed by the tax administrator.

44-70-5. Exemptions.

(a) Notwithstanding any other provision of this chapter, in accordance with rules that may

be promulgated by the tax administrator in regard to tax exempt purchases, retail dealers shall not

collect the firearms or firearm ammunition tax when the firearms and/or firearm ammunition is

being sold to the following:

(1) An office, division, or agency of the United States, the State of Rhode Island, or any

municipal corporation or political subdivision, including the Armed Forces of the United States or

National Guard.

(2) A bona fide veterans’ organization which receive firearms and/or firearm ammunition

directly from the Armed Forces of the United States and uses said firearms and/or firearm

ammunition strictly and solely for ceremonial purposes with blank ammunition.

(3) Any active sworn law enforcement officer purchasing a firearm and/or firearm

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 64 of 70)

ammunition for official or training related purposes presenting an official law enforcement

identification card at the time of purchase.

(b) In accordance with rules to be promulgated by the tax administrator, an active member

of the Armed Forces of the United States, National Guard or deputized law enforcement officer

may apply for a refund from the department for the tax paid on a firearm and/or firearm ammunition

that was purchased for official use or training related purposes.

be promulgated by the tax administrator in regard to tax-exempt purchases, retail dealers shall not

collect firearm ammunition tax on blank ammunition.

44-70-6. Tax Imposed.

The retailer shall add the tax imposed by this chapter to the sale price or charge, and when

added the tax constitutes a part of the price or charge, is a debt from the consumer or user to the

retailer, and is recoverable at law in the same manner as other debts; provided, that the amount of

tax that the retailer collects from the consumer or user is as follows:

Amount of Fair Market Value, as Tax

$0.01 to $ .09 inclusive No Tax

.10 to .19 inclusive .01

.20 to .29 inclusive .02

.30 to .39 inclusive .03

.40 to .49 inclusive .04

.50 to .59 inclusive .05

.60 to .69 inclusive .06

.70 to .79 inclusive .07

.80 to .89 inclusive .08

.90 to .99 inclusive .09

.100 to .109 inclusive .10

and where the amount of the sale is more than one dollar and nine cents ($1.09) the amount

of the tax is computed at the rate of ten percent (10%)

Tax Included in Sales Price.

It shall be deemed a violation of this chapter for a retail dealer to fail to separately state the

tax imposed in this chapter and instead include it in the sale price of firearms and/or firearm

ammunition. The tax levied in this article shall be imposed in addition to all other taxes imposed

by the State, or any municipal corporation or political subdivision of any of the foregoing.

(b) Any person who shall receive firearms or firearm ammunition in any form and under

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 65 of 70)

any circumstances that shall preclude the collection of the tax provided for in this chapter, and shall

then sell or use the firearm or Firearm ammunition in any manner and under any circumstances that

shall render the sale or use subject to the tax, shall use the same form, pay the same taxes, and be

subject to all other provisions of this chapter relating to tax.

44-70-7. Tax Collection.

(a) Tax Collection.

Any retail dealer shall collect the taxes imposed by this chapter from any purchaser to

whom the sale of said firearms or firearm ammunition is made within the State and shall remit to

the State the tax levied by this chapter.

(b) Tax Remittance.

It shall be the duty of every retail dealer to remit the tax due on the sales of firearms or

firearm ammunition purchased in the State, on forms prescribed by the tax administrator, on or

before the 20th day of the month following the month in which the firearm or firearm ammunition

sale occurred on a form and in the manner required by the tax administrator.

purchaser, the purchaser shall file a return and pay the tax directly to the State, on or before the

date required by Subsection (b) of this Section.

44-70-8. Penalties.

(a) Failure to file tax returns or to pay tax. In the case of failure:

(1) To file the tax return on or before the prescribed date, unless it is shown that the failure

is due to reasonable cause and not due to willful neglect, an addition to tax shall be made equal to

ten percent (10%) of the tax required to be reported. For this purpose, the amount of tax required

to be reported shall be reduced by an amount of the tax paid on or before the date prescribed for

payment and by the amount of any credit against the tax which may properly be claimed upon the

return;

(2) To pay the amount shown as tax on the personal income tax return on or before the

prescribed date for payment of the tax unless it is shown that the failure is due to reasonable cause

and not due to willful neglect, there shall be added to the amount shown as tax on the return ten

percent (10%) of the amount of the tax.

(b) Negligence. If any part of a deficiency is due to negligence or intentional disregard of

the Rhode Island General Laws or rules or regulations under this chapter (but without intent to

defraud), five percent (5%) of that part of the deficiency shall be added to the tax.

deficiency shall be added to the tax. This amount shall be in lieu of any other additional amounts

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 66 of 70)

imposed by subsections (a) and (b) of this section.

(d) Failure to collect and pay over tax. Any person required to collect, truthfully account

for, and pay over the firearm and Firearm ammunition tax who willfully fails to collect the tax or

truthfully account for and pay over the tax or willfully attempts in any manner to evade or defeat

the tax or the payment thereof, shall, in addition to other penalties provided by law, be liable to a

civil penalty equal to the total amount of the tax evaded, or not collected, or not accounted for and

paid over.

(e) Additions and penalties treated as tax. The additions to the tax and civil penalties

provided by this section shall be paid upon notice and demand and shall be assessed, collected, and

paid in the same manner as taxes.

(g) Bad checks. If any check or money order in payment of any amount receivable under

this title is not duly paid, in addition to any other penalties provided by law, there shall be paid as

a penalty by the person who tendered the check, upon notice and demand by the tax administrator

or his or her delegate, in the same manner as tax, an amount equal to one percent (1%) of the amount

of the check, except that if the amount of the check is less than five hundred dollars ($500), the

penalty under this section shall be five dollars ($5.00). This subsection shall not apply if the person

tendered the check in good faith and with reasonable cause to believe that it would be duly paid.

(h) Misuse of Trust Funds Any retailer and any officer, agent, servant, or employee of any

corporate retailer responsible for either the collection or payment of the tax, who appropriates or

converts the tax collected to his or her own use or to any use other than the payment of the tax to

the extent that the money required to be collected is not available for payment on the due date as

prescribed in this chapter, shall upon conviction for each offense be fined not more than ten

thousand dollars ($10,000), or be imprisoned for one year, or by both fine and imprisonment, both

fine and imprisonment to be in addition to any other penalty provided by this chapter.

(i) Operating without a Firearm License A person who engages in business as a firearm or

firearm ammunition retailer in this state without a license as defined in § 11-47-38 or after said

license has been suspended or revoked, and each officer of any corporation which engages in

business as a firearm or firearm ammunition retailer in this state without a license as defined in §

11-47-38 or after said license has been suspended or revoked, is guilty of a misdemeanor, and shall

be fined not more than five thousand dollars ($5,000) for each offense, or be imprisoned not

exceeding one year, or be punished by both fine and imprisonment. Each day in which the person

engages in business constitutes a separate offense.

44-70-9. Claim for Refund.

Whenever the tax administrator determines that any person is entitled to a refund of any

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 67 of 70)

moneys paid by a person under the provisions of this chapter, or whenever a court of competent

jurisdiction orders a refund of any moneys paid, the general treasurer shall, upon certification by

the tax administrator and with the approval of the director of administration, pay the refund from

any moneys in the treasury not appropriated without any further act or resolution making

appropriation for the refund. No refund is allowed unless a claim is filed with the tax administrator

within three (3) years from the fifteenth (15th) day after the close of the month for which the

overpayment was made.

44-70-10. Enforcement.

(a) General. The tax administrator shall administer and enforce this chapter and may

require any facts and information to be reported that he or she may deem necessary to enforce the

provisions of this chapter.

(b) Examination of books and witnesses. For the purpose of ascertaining the correctness

of any filing or notice or for the purpose of compliance with the terms of this chapter, the tax

administrator shall have the power to examine or to cause to have examined, by any agent or

representative designated by the tax administrator for that purpose, any books, papers, records, or

memoranda bearing upon said matters and may require the attendance of the person rendering the

return or any officer or employee of the person, or the attendance of any other person having

knowledge of the correctness of any filing or notice or compliance with the terms of this chapter,

and may take testimony and require proof material for its information, with power to administer

oaths to the person or persons.

44-70-12. Appeal.

If the tax administrator issues a final determination hereunder, an appeal may be made

pursuant to the provisions of chapter 19 of title 44.

44-70-13. Severability.

If any provision of this chapter or the application thereof is held invalid, such invalidity

shall not affect the provisions or applications of this chapter which can be given effect without the

invalid provisions or applications.

SECTION 19. Sections 46-12.7-4.1 and 46-12.7-5.1 of the General Laws in Chapter 46-

12.7 entitled "Oil Spill Prevention, Administration and Response Fund" are hereby amended to

read as follows:

46-12.7-4.1. Uniform oil response and prevention fee.

(a) A uniform oil spill response and prevention fee in an amount not exceeding five cents

($.05) ten cents ($.10) for each barrel of petroleum products, as set by the director pursuant to

subsection (d) of this section, shall be imposed upon every person owning petroleum products at

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 68 of 70)

the time the petroleum products are received at a marine terminal within this state by means of a

vessel from a point of origin outside this state. The fee shall be remitted to the division of taxation

on the 30th day of each month based upon the number of barrels of petroleum products received

during the preceding month.

(b) Every owner of petroleum products shall be liable for the fee until it has been paid to

the state, except that payment to a marine terminal operator registered under this chapter is

sufficient to relieve the owner from further liability for the fee; provided, however, that the fee for

asphalt products and asphalt derivatives shall be one cent ($.01) per barrel of asphalt products or

derivatives.

estimates that the amount in the fund will reach the amount specified in subsection (e) of this

section, and the money in the fund is not required for the purposes specified in § 46-12.7-5.1, the

director shall instruct the division of taxation to cease collecting the fee.

(d) The director shall set the amount of the oil spill prevention and response fees. The

administrator, except for the fee set out in subsection (b), shall not set the amount of the fee at less

than five cents ($0.05) ten cents ($.10) for each barrel of petroleum products or crude oil, unless

the director finds that the assessment of a lesser fee will cause the fund to reach the designated

amount within six (6) months.

(e) For the purposes of this chapter, "designated amount" means an amount equal to ten

million dollars ($10,000,000), adjusted for inflation after January 1, 1998, according to an index

which the director may reasonably choose.

(f) All fees collected pursuant to this section shall be deposited in the oil spill prevention,

administration, and response fund, and shall be disbursed according to the purposes expressed in §

46-12.7-5.1.

(g) Notwithstanding the provisions of subsection (f) of this section, each July 1st, two

hundred and fifty thousand dollars ($250,000) of the fees collected under this section shall be

deposited into the coastal and estuarine habitat restoration trust fund (the "trust").

46-12.7-5.1. Purposes of the fund.

The director may use money from the fund to:

(1) Provide funds to cover promptly the costs of response, containment, and cleanup of oil

spills into marine or estuarine waters, including, but not limited to, damage assessment costs, and

wildlife rehabilitation as defined in this section.

(2) Provide funds to cover the costs of site evaluation activities. These activities shall

include, but not be limited to, site mapping, installation of wells, collection, monitoring, and

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 69 of 70)

analysis of samples of air, soil, and/or water, and evaluation of the impacts of contamination on

maritime and terrestrial shore line environments, production of the reports, and installation and the

maintenance of necessary technology, and equipment for complete remedial action;

(3) Provide emergency loans and to cover response and cleanup costs and other damages

suffered by the state or other persons or entities from oil spills or threatened oil spills;

(4) To pay for claims for damages, which cannot otherwise be compensated by responsible

parties or the federal government, pursuant to § 46-12.7-8.1;

(5) Provide emergency loans to affected workers ineligible for unemployment insurance;

(6) Pay for structural improvements to vulnerable coastal features, including the

Providence River Shipping Canal, in order to reduce the risk of oil tanker collisions, grounding,

and spills;

(7) Pay for the restoration of natural resources damaged by an oil spill, where necessary

and appropriate;

(8) Pay for response training and equipment;

(9) Pay for large-scale personnel drills and exercises;

(10) Pay for research, development, and monitoring activities as outlined in § 46-12.7-13;

and

(11) Pay for the expenditures related to the Rhode Island coastal and estuarine habitat

restoration trust fund pursuant to chapter 23.1 of this title, subject to appropriation.; and

(12) Pay for the expenditures related to compliance and monitoring activities for storm

water management and brownfields remediation.

SECTION 20. Effective Date. Section 7 shall take effect July 1, 2019. Sections 14 and 15

of this article shall take effect August 1, 2019. Section 16 shall take effect September 1, 2019.

Sections 1, 9, 12 and 18 of this article shall take effect October 1, 2019. The remaining sections of

this article shall take effect upon passage.

Art5
RELATING TO TAXES, REVENUES AND FEES
(Page 70 of 70)