2019 -- S 0979

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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 TOWNS AND CITIES -- NEWPORT ADMISSION FEE SURCHARGE

     Introduced By: Senators DiPalma, and Euer

     Date Introduced: June 13, 2019

     Referred To: Senate Finance

     (by request)

It is enacted by the General Assembly as follows:

     SECTION 1. Title 45 of the General Laws entitled "TOWNS AND CITIES" is hereby

amended by adding thereto the following chapter:

CHAPTER 69

NEWPORT ADMISSION FEE SURCHARGE

     45-69-1. Legislative findings and purpose.

     The general assembly hereby finds and declares that:

     (1) The city council of the city of Newport has an obligation to pursue additional revenue

resources to ameliorate the burden of the cost of government on its residents and taxpayers.

     (2) There are significant stressors in the provision of government services to the public as

well as issues with the continual improvement, rehabilitation, reconstruction and construction of

infrastructure improvements to include public school infrastructure issues.

     45-69-2. Definitions.

     For the purposes of this chapter:

     (1) "Admission fee" means and includes the purchase price for any ticket, entry fee or

other form of payment, including free or complimentary admissions, when made in connection

with a valuable contribution to any organization or establishment holding or sponsoring any

activity set forth in this chapter, which free or complimentary admission shall be deemed to have

a value equivalent to the charge that would have otherwise been made for the admission.

     (2) "Person" means any individual, firm, partnerships, associations, corporation, or any

other legal entity, and includes municipalities and political subdivisions of the state.

     45-69-3. Admission fee surcharge authorization.

     The city of Newport is authorized to impose an admission surcharge in an amount not to

exceed three percent (3%) of any admission fee, on all organizations and venues within the city

that sold more than twenty thousand (20,000) tickets during the previous calendar year.

     45-69-4. Application.

     Commencing on January 1, 2020, the surcharge shall be applied to all organizations or

venues defined in § 45-69-3, including places of amusement, sports, entertainment, exhibition,

display or other recreational events or similar activities.

     45-69-5. Withholding of admission fee surcharge.

     (a) Each person receiving any admission fee set forth in this chapter shall be liable for the

surcharges imposed by this chapter, and shall, on or before the twentieth day of each month,

make a return in duplicate to the finance director, in such form as the finance director may

prescribe, showing the number of admission fees collected during the preceding calendar month,

the amount of the surcharge imposed on the same, and any other information as the finance

director may require.

     (b) Each person making the return shall, at the time of making the same, pay the

surcharges collected to the finance director. The payments shall be deposited into the city

treasury. The finance director may adopt any and all uniform rules and regulations consistent with

the provisions of subsection (a) of this section.

     (c) If the surcharge imposed by this chapter is not paid when due, there shall be added to

the amount due, interest at the rate of one percent (1%) a month, from the date when the

surcharges became due until they are paid.

     45-69-6. Unpaid surcharges.

     (a) All unpaid surcharges imposed by this chapter shall be a lien upon all of the real and

personal property of any person required to collect and pay the same. If the person shall

disassociate from the organization or venue, they shall be required to complete the return

provided for in § 45-69-5 within thirty (30) days after the date of disassociation, transfer of the

organization or venue, or sale of the same, and the person’s successor shall be required to

withhold a sum sufficient from the purchase price of the organization or venue in an amount

equal to the amount of the surcharge which should have been collected, but not paid, together

with interest, if any, until such time as the former owner of the organization or venue produces a

receipt from the finance director indicating that the surcharges have been paid, or a certification

that no surcharges are due.

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     (b) If the purchaser of the organization or venue fails to withhold the monies provided in

subsection (a) of this section, then the purchaser shall be liable for the payment of the surcharges

collected and unpaid by the seller, together with interest.

     (c) The lien for unpaid surcharges imposed by this chapter shall not be released or

discharged until such time as the finance director shall certify the amount of the unpaid

surcharges and any interest owed to the city have been paid in full.

     45-69-7. Records required.

     Every person receiving admission fees as set forth in this chapter shall keep any books,

including records, receipts, and other pertinent papers, in any form that the finance director may

require. These records shall be open at all times for inspection of the finance director, or his or

her agents, and shall be produced upon issuance of a subpoena by the finance director at a time

and place so designated.

     45-69-8. Penalties for violations.

     Any person who fails or refuses to furnish any return required to be made, or fails or

refuses to furnish any other data required by the finance director, or makes any false or fraudulent

return, or violates any provision of this chapter for which no other penalty is provided, shall be

guilty of a misdemeanor, and upon conviction, shall be fined not more than one thousand dollars

($1,000) for each offense, or be imprisoned for a term of not more than one year, or both.

     45-69-9. Rules and regulations -- Forms.

     The finance director may prescribe rules and regulations, not inconsistent with law, to

effectuate the provisions of this chapter. These rules and regulations, when reasonably designed

to carry out the intent and purpose of this chapter, are prima facie evidence of its proper

interpretation. These rules and regulations may from time to time be amended, suspended, or

revoked, in whole or in part, by the finance director. The finance director may prescribe and

furnish any forms necessary and proper for the administration of this chapter.

     45-69-10. Severability.

     The provisions of this chapter are declared to be severable; and in case any part, section,

or provision of this chapter is held invalid by any court of competent jurisdiction, the remaining

parts, sections, and provisions of the chapter shall not be impaired or affected.

     SECTION 2. This act shall take effect on January 1, 2020.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TOWNS AND CITIES -- NEWPORT ADMISSION FEE SURCHARGE

***

     This act would authorize the city of Newport to impose a surcharge on the price of

admission to organizations or venues that sell more than twenty thousand (20,000) admission

tickets per year. The act imposes liens on the real and personal property of any person that fails to

collect the fee.

     This act would take effect on January 1, 2020

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