2019 -- S 0286

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LC001554

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

     RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND

COMPUTATION

     

     Introduced By: Senators McKenney, Lynch Prata, Lombardi, Felag, and Valverde

     Date Introduced: February 13, 2019

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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

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

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     44-18-18.2. Annual Sales Tax Holiday.

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     (a) Notwithstanding any general or public law to the contrary, for the days of August 10,

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2019 and August 11, 2019, sales tax shall not be imposed upon nonbusiness sales at retail of

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tangible personal property. For purposes of this section, tangible personal property shall not

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

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motorboats, meals or a single item whose price exceeds two thousand five hundred dollars

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($2,500).

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     (b) Notwithstanding any general or public law to the contrary, for the days of August 10,

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2019 and August 11, 2019, a vendor shall not add to the sales price, or collect from a nonbusiness

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purchaser, an excise upon sales at retail of tangible personal property. The director of the

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department of revenue ("the director") shall not require a vendor to collect and pay taxes upon

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sales at retail of tangible personal property purchased on August 10, 2019 and August 11, 2019.

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An excise erroneously or improperly collected during the days of August 10, 2019 and August

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11, 2019, shall be remitted to the department of revenue.

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

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

 

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

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

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

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pursuant to the general laws, shall remain in effect for sales for the days of August 10, 2019 and

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August 11, 2019.

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     (d) On or before December 31, 2019, the director of the department of revenue shall

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certify to the comptroller the amount of sales tax forgone, as well as new revenue raised from

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personal and corporate income taxes and other sources pursuant to this section. The director shall

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file a report with the house and senate finance committees detailing the distribution of revenues

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which would have been deposited in each fund without this section.

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

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necessary for the implementation of this section.

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

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this section are restricted to those transactions occurring on August 10, 2019 and August 11,

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2019. Transfer of possession of or payment in full for the property shall occur on one of those

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days, and prior sales or layaway sales shall be ineligible.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

     RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND

COMPUTATION

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     This act would create a sales tax holiday for the days of August 10, 2019 and August 11,

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2019, and no sales taxes would be collected on nonbusiness sales of tangible personal property,

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with the exception of sales of telecommunications, tobacco products, gas, steam, oil, electricity,

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motor vehicles, motorboats, meals or a single item whose price exceeds two thousand five

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hundred dollars ($2,500).

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     This act would take effect upon passage.

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