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1 | ARTICLE 8 | |
2 | RELATING TO TAXES | |
3 | SECTION 1. Effective October 1, 2020, section 3-10-1 of the General Laws in Chapter 3- | |
4 | 10 entitled “Taxation of Beverages” is hereby amended to read as follows: | |
5 | 3-10-1. Manufacturing tax rates – Exemption of religious uses. | |
6 | (a) There shall be assessed and levied by the tax administrator on all beverages | |
7 | manufactured, rectified, blended, or reduced for sale in this state a tax of three dollars and thirty | |
8 | cents ($3.30) on every thirty-one (31) gallons, and a tax at a like rate for any other quantity or | |
9 | fractional part. On any beverage manufactured, rectified, blended, or reduced for sale in this state | |
10 | consisting, in whole or in part, of wine, whiskey, rum, gin, brandy spirits, ethyl alcohol, or other | |
11 | strong liquors (as distinguished from beer or other brewery products), the tax to be assessed and | |
12 | levied is as follows: | |
13 | (1) Still wines (whether fortified or not), one dollar and forty cents ($1.40) sixty cents | |
14 | ($0.60) per gallon; | |
15 | (2) Still wines (whether fortified or not) made entirely from fruit grown in this state, thirty | |
16 | cents ($.30) per gallon; | |
17 | (3) Sparkling wines (whether fortified or not), seventy five cents ($.75) per gallon; | |
18 | (4) Whiskey, rum, gin, brandy spirits, cordials, and other beverages consisting in whole or | |
19 | in part of alcohol that is the product of distillation, five dollars and forty cents ($5.40) three dollars | |
20 | and seventy-five cents ($3.75) per gallon, except that whiskey, rum, gin, brandy spirits, cordials, | |
21 | and other beverages consisting, in whole or in part, of alcohol that is the product of distillation but | |
22 | that contains alcohol measuring thirty (30) proof or less, one dollar and ten cents ($1.10) per gallon; | |
23 | (5) Ethyl alcohol to be used for beverage purposes, seven dollars and fifty cents ($7.50) | |
24 | per gallon; and | |
25 | (6) Ethyl alcohol to be used for nonbeverage purposes, eight cents ($.08) per gallon. | |
26 | (b) Sacramental wines are not subject to any tax if sold directly to a member of the clergy | |
27 | for use by the purchaser or his or her congregation for sacramental or other religious purposes. | |
28 | (c) A brewer who brews beer in this state that is actively and directly owned, managed, and | |
29 | operated by an authorized legal entity that has owned, managed, and operated a brewery in this | |
30 | state for at least twelve (12) consecutive months, shall receive a tax exemption on the first one | |
31 | hundred thousand (100,000) barrels of beer that it produces and distributes in this state in any | |
32 | calendar year. A barrel of beer is thirty one (31) gallons. | |
33 | (d) A distiller who distills spirits in this state that is actively and directly owned, managed, | |
34 | and operated by an authorized legal entity that has owned, managed, and operated a distillery in | |
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1 | this state for at least twelve (12) consecutive months, shall receive a tax exemption on the first fifty | |
2 | thousand (50,000) gallons of distilled spirits that it produces and distributes in this state in any | |
3 | calendar year. | |
4 | SECTION 2. Sections 42-63.1-3 and 42-63.1-12 of the General Laws in Chapter 42-63.1 | |
5 | entitled "Tourism and Development" is hereby amended as follows: | |
6 | 42-63.1-3. Distribution of tax. | |
7 | (a) For returns and tax payments received on or before December 31, 2015, except as | |
8 | provided in § 42-63.1-12, the proceeds of the hotel tax, excluding the portion of the hotel tax | |
9 | collected from residential units offered for tourist or transient use through a hosting platform, shall | |
10 | be distributed as follows by the division of taxation and the city of Newport: | |
11 | (1) Forty-seven percent (47%) of the tax generated by the hotels in the district, except as | |
12 | otherwise provided in this chapter, shall be given to the regional tourism district wherein the hotel | |
13 | is located; provided, however, that from the tax generated by the hotels in the city of Warwick, | |
14 | thirty-one percent (31%) of the tax shall be given to the Warwick regional tourism district | |
15 | established in § 42-63.1-5(a)(5) and sixteen percent (16%) of the tax shall be given to the Greater | |
16 | Providence-Warwick Convention and Visitors' Bureau established in § 42-63.1-11; and provided | |
17 | further, that from the tax generated by the hotels in the city of Providence, sixteen percent (16%) | |
18 | of that tax shall be given to the Greater Providence-Warwick Convention and Visitors' Bureau | |
19 | established by § 42-63.1-11, and thirty-one percent (31%) of that tax shall be given to the | |
20 | Convention Authority of the city of Providence established pursuant to the provisions of chapter | |
21 | 84 of the public laws of January, 1980; provided, however, that the receipts attributable to the | |
22 | district as defined in § 42-63.1-5(a)(7) shall be deposited as general revenues, and that the receipts | |
23 | attributable to the district as defined in § 42-63.1-5(a)(8) shall be given to the Rhode Island | |
24 | commerce corporation as established in chapter 64 of this title. | |
25 | (2) Twenty-five percent (25%) of the hotel tax shall be given to the city or town where the | |
26 | hotel that generated the tax is physically located, to be used for whatever purpose the city or town | |
27 | decides. | |
28 | (3) Twenty-one (21%) of the hotel tax shall be given to the Rhode Island commerce | |
29 | corporation established in chapter 64 of this title, and seven percent (7%) to the Greater Providence- | |
30 | Warwick Convention and Visitors' Bureau. | |
31 | (b) For returns and tax payments received after December 31, 2015, except as provided in | |
32 | § 42-63.1-12, the proceeds of the hotel tax, excluding the portion of the hotel tax collected from | |
33 | residential units offered for tourist or transient use through a hosting platform, shall be distributed | |
34 | as follows by the division of taxation and the city of Newport: | |
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1 | (1) For the tax generated by the hotels in the Aquidneck Island district, as defined in § 42- | |
2 | 63.1-5, forty-two percent (42%) of the tax shall be given to the Aquidneck Island district, twenty- | |
3 | five (25%) of the tax shall be given to the city or town where the hotel that generated the tax is | |
4 | physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick | |
5 | Convention and Visitors Bureau established in § 42-63.1-11, and twenty-eight percent (28%) of | |
6 | the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this | |
7 | title. | |
8 | (2) For the tax generated by the hotels in the Providence district as defined in § 42-63.1-5, | |
9 | twenty eight percent (28%) of the tax shall be given to the Providence district, twenty-five percent | |
10 | (25%) of the tax shall be given to the city or town where the hotel that generated the tax is physically | |
11 | located, twenty-three percent (23%) of the tax shall be given to the Greater Providence-Warwick | |
12 | Convention and Visitors Bureau established in § 42-63.1-11, and twenty-four (24%) of the tax shall | |
13 | be given to the Rhode Island commerce corporation established in chapter 64 of this title. | |
14 | (3) For the tax generated by the hotels in the Warwick district as defined in § 42-63.1-5, | |
15 | twenty-eight percent (28%) of the tax shall be given to the Warwick District, twenty-five percent | |
16 | (25%) of the tax shall be given to the city or town where the hotel that generated the tax is physically | |
17 | located, twenty-three percent (23%) of the tax shall be given to the Greater Providence-Warwick | |
18 | Convention and Visitors Bureau established in § 42-63.1-11, and twenty-four (24%) of the tax shall | |
19 | be given to the Rhode Island commerce corporation established in chapter 64 of this title. | |
20 | (4) For the tax generated by the hotels in the Statewide district, as defined in § 42-63.1-5, | |
21 | twenty-five percent (25%) of the tax shall be given to the city or town where the hotel that generated | |
22 | the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence- | |
23 | Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy percent (70%) | |
24 | of the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this | |
25 | title. | |
26 | (5) With respect to the tax generated by hotels in districts other than those set forth in | |
27 | subsections (b)(1) through (b)(4) of this section, forty-two percent (42%) of the tax shall be given | |
28 | to the regional tourism district, as defined in § 42-63.1-5, wherein the hotel is located, twenty-five | |
29 | percent (25%) of the tax shall be given to the city or town where the hotel that generated the tax is | |
30 | physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick | |
31 | Convention and Visitors Bureau established in § 42-63.1-11, and twenty-eight (28%) of the tax | |
32 | shall be given to the Rhode Island commerce corporation established in chapter 64 of this title. | |
33 | (c) For returns and tax payments received before July 1, 2019, the proceeds of the hotel tax | |
34 | collected from residential units offered for tourist or transient use through a hosting platform shall | |
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1 | be distributed as follows by the division of taxation and the city of Newport: twenty-five percent | |
2 | (25%) of the tax shall be given to the city or town where the residential unit that generated the tax | |
3 | is physically located, and seventy-five percent (75%) of the tax shall be given to the Rhode Island | |
4 | commerce corporation established in chapter 64 of this title. | |
5 | (d) The Rhode Island commerce corporation shall be required in each fiscal year to spend | |
6 | on the promotion and marketing of Rhode Island as a destination for tourists or businesses an | |
7 | amount of money of no less than the total proceeds of the hotel tax it receives pursuant to this | |
8 | chapter for the fiscal year. | |
9 | (e) Notwithstanding the foregoing provisions of this section, for returns and tax payments | |
10 | received on or after July 1, 2016, and on or before June 30, 2017, except as provided in § 42-63.1- | |
11 | 12, the proceeds of the hotel tax, excluding the portion of the hotel tax collected from residential | |
12 | units offered for tourist or transient use through a hosting platform, shall be distributed in | |
13 | accordance with the distribution percentages established in subsections (a)(1) through (a)(3) of this | |
14 | section by the division of taxation and the city of Newport. | |
15 | (f) For returns and tax payments received on or after July 1, 2018 and on or prior to June | |
16 | 30 2019, except as provided in § 42-63.1-12, the proceeds of the hotel tax, excluding the portion of | |
17 | the hotel tax collected from residential units offered for tourist or transient use through a hosting | |
18 | platform, shall be distributed as follows by the division of taxation and the city of Newport: | |
19 | (1) For the tax generated by the hotels in the Aquidneck Island district, as defined in § 42- | |
20 | 63.1-5, forty-five percent (45%) of the tax shall be given to the Aquidneck Island district, twenty- | |
21 | five (25%) of the tax shall be given to the city or town where the hotel that generated the tax is | |
22 | physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick | |
23 | Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five percent (25%) of the | |
24 | tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title. | |
25 | (2) For the tax generated by the hotels in the Providence district as defined in § 42-63.1-5, | |
26 | thirty percent (30%) of the tax shall be given to the Providence district, twenty-five percent (25%) | |
27 | of the tax shall be given to the city or town where the hotel that generated the tax is physically | |
28 | located, twenty-four (24%) of the tax shall be given to the Greater Providence-Warwick | |
29 | Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one (21%) of the tax shall | |
30 | be given to the Rhode Island commerce corporation established in chapter 64 of this title. | |
31 | (3) For the tax generated by the hotels in the Warwick district as defined in § 42-63.1-5, | |
32 | thirty percent (30%) of the tax shall be given to the Warwick District, twenty-five percent (25%) | |
33 | of the tax shall be given to the city or town where the hotel that generated the tax is physically | |
34 | located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick | |
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1 | Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one (21%) of the tax shall | |
2 | be given to the Rhode Island commerce corporation established in chapter 64 of this title. | |
3 | (4) For the tax generated by the hotels in the Statewide district, as defined in § 42-63.1-5, | |
4 | twenty-five percent (25%) of the tax shall be given to the city or town where the hotel that generated | |
5 | the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence- | |
6 | Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy percent (70%) | |
7 | of the tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this | |
8 | title. | |
9 | (5) With respect to the tax generated by hotels in districts other than those set forth in | |
10 | subsections (b)(1) through (b)(4) of this section, forty-five percent (45%) of the tax shall be given | |
11 | to the regional tourism district, as defined in § 42-63.1-5, wherein the hotel is located, twenty-five | |
12 | percent (25%) of the tax shall be given to the city or town where the hotel that generated the tax is | |
13 | physically located, five percent (5%) of the tax shall be given to the Greater Providence-Warwick | |
14 | Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five (25%) of the tax shall | |
15 | be given to the Rhode Island commerce corporation established in chapter 64 of this title. | |
16 | (g) For returns and tax payments received on or after July 1, 2019 and on or prior to June | |
17 | 30, 2020, except as provided in § 42-63.1-12, the proceeds of the hotel tax, including the portion | |
18 | of the hotel tax collected from residential units offered for tourist or transient use through a hosting | |
19 | platform, shall be distributed as follows by the division of taxation and the city of Newport: | |
20 | (1) For the tax generated in the Aquidneck Island district, as defined in § 42-63.1-5, forty- | |
21 | five percent (45%) of the tax shall be given to the Aquidneck Island district, twenty-five percent | |
22 | (25%) of the tax shall be given to the city or town where the hotel or residential unit that generated | |
23 | the tax is physically located, five percent (5%) of the tax shall be given to the Greater Providence- | |
24 | Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five percent | |
25 | (25%) of the tax shall be given to the Rhode Island commerce corporation established in chapter | |
26 | 64 of this title. | |
27 | (2) For the tax generated in the Providence district as defined in § 42-63.1-5, thirty percent | |
28 | (30%) of the tax shall be given to the Providence district, twenty-five percent (25%) of the tax shall | |
29 | be given to the city or town where the hotel or residential unit that generated the tax is physically | |
30 | located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick | |
31 | Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one percent (21%) of the | |
32 | tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title. | |
33 | (3) For the tax generated in the Warwick district as defined in § 42-63.1-5, thirty percent | |
34 | (30%) of the tax shall be given to the Warwick District, twenty-five percent (25%) of the tax shall | |
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1 | be given to the city or town where the hotel or residential unit that generated the tax is physically | |
2 | located, twenty-four percent (24%) of the tax shall be given to the Greater Providence-Warwick | |
3 | Convention and Visitors Bureau established in § 42-63.1-11, and twenty-one percent (21%) of the | |
4 | tax shall be given to the Rhode Island commerce corporation established in chapter 64 of this title. | |
5 | (4) For the tax generated in the Statewide district, as defined in § 42-63.1-5, twenty-five | |
6 | percent (25%) of the tax shall be given to the city or town where the hotel or residential unit that | |
7 | generated the tax is physically located, five percent (5%) of the tax shall be given to the Greater | |
8 | Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy | |
9 | percent (70%) of the tax shall be given to the Rhode Island commerce corporation established in | |
10 | chapter 64 of this title. | |
11 | (5) With respect to the tax generated in districts other than those set forth in subsections | |
12 | (g)(1) through (g)(4) of this section, forty-five percent (45%) of the tax shall be given to the regional | |
13 | tourism district, as defined in § 42-63.1-5, wherein the hotel or residential unit is located, twenty- | |
14 | five percent (25%) of the tax shall be given to the city or town where the hotel or residential unit | |
15 | that generated the tax is physically located, five percent (5%) of the tax shall be given to the Greater | |
16 | Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-five | |
17 | percent (25%) of the tax shall be given to the Rhode Island commerce corporation established in | |
18 | chapter 64 of this title. | |
19 | (h) For returns and tax payments received on or after July 1, 2020, except as provided in § | |
20 | 42-63.1-12, the proceeds of the hotel tax, including the portion of the hotel tax collected from | |
21 | residential units offered for tourist or transient use through a hosting platform, shall be distributed | |
22 | as follows by the division of taxation and the city of Newport: | |
23 | (1) For the tax generated in the Aquidneck Island district, as defined in § 42-63.1-5, thirty- | |
24 | seven and a half percent (37.5%) of the tax shall be given to the Aquidneck Island district, twenty | |
25 | and eight tenths percent (20.8%) of the tax shall be given to the city or town where the hotel or | |
26 | residential unit that generated the tax is physically located, four and two tenths percent (4.2%) of | |
27 | the tax shall be given to the Greater Providence-Warwick Convention and Visitors Bureau | |
28 | established in § 42-63.1-11, sixteen and seven tenths percent (16.7%) of the tax shall be transferred | |
29 | to General Revenue, and twenty and eight tenths percent (20.8%) of the tax shall be given to the | |
30 | Rhode Island commerce corporation established in chapter 64 of this title. | |
31 | (2) For the tax generated in the Providence district as defined in § 42-63.1-5, twenty-five | |
32 | percent (25%) of the tax shall be given to the Providence district, twenty and eight tenths percent | |
33 | (20.8%) of the tax shall be given to the city or town where the hotel or residential unit that generated | |
34 | the tax is physically located, twenty percent (20%) of the tax shall be given to the Greater | |
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1 | Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, sixteen and | |
2 | seven tenths percent (16.7%) of the tax shall be transferred to General Revenue, and seventeen and | |
3 | a half percent (17.5%) of the tax shall be given to the Rhode Island commerce corporation | |
4 | established in chapter 64 of this title. | |
5 | (3) For the tax generated in the Warwick district as defined in § 42-63.1-5, twenty-five | |
6 | percent (25%) of the tax shall be given to the Warwick District, twenty and eight tenths percent | |
7 | (20.8%) of the tax shall be given to the city or town where the hotel or residential unit that generated | |
8 | the tax is physically located, twenty percent (20%) of the tax shall be given to the Greater | |
9 | Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, sixteen and | |
10 | seven tenths percent (16.7%) of the tax shall be transferred to General Revenue, and seventeen and | |
11 | a half percent (17.5%) of the tax shall be given to the Rhode Island commerce corporation | |
12 | established in chapter 64 of this title. | |
13 | (4) For the tax generated in the Statewide district, as defined in § 42-63.1-5, twenty and | |
14 | eight tenths percent (20.8%) of the tax shall be given to the city or town where the hotel or | |
15 | residential unit that generated the tax is physically located, four and two tenths percent (4.2%) of | |
16 | the tax shall be given to the Greater Providence-Warwick Convention and Visitors Bureau | |
17 | established in § 42-63.1-11, sixteen and seven tenths percent (16.7%) of the tax shall be transferred | |
18 | to General Revenue, and fifty-eight and three tenths percent (58.3%) of the tax shall be given to | |
19 | the Rhode Island commerce corporation established in chapter 64 of this title. | |
20 | (5) With respect to the tax generated in districts other than those set forth in subsections | |
21 | (h)(1) through (h)(4) of this section, thirty-seven and a half percent (37.5%) of the tax shall be given | |
22 | to the regional tourism district, as defined in § 42-63.1-5, wherein the hotel or residential unit is | |
23 | located, twenty and eight tenths percent (20.8%) of the tax shall be given to the city or town where | |
24 | the hotel or residential unit that generated the tax is physically located, four and two tenths percent | |
25 | (4.2%) of the tax shall be given to the Greater Providence-Warwick Convention and Visitors | |
26 | Bureau established in § 42-63.1-11, sixteen and seven tenths percent (16.7%) of the tax shall be | |
27 | transferred to General Revenue, and twenty and eight tenths percent (20.8%) of the tax shall be | |
28 | given to the Rhode Island commerce corporation established in chapter 64 of this title. | |
29 | (6) With respect to the revenue collected by the division of taxation on behalf of each | |
30 | municipality in subsections (h)(1) through (h)(5) of this section, before distributing said revenue to | |
31 | the municipalities, a two percent (2%) administrative fee shall be deducted therefrom and | |
32 | transferred to the general fund. | |
33 | 42-63.1-12. Distribution of tax to Rhode Island Convention Center Authority. | |
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1 | (a) For returns and tax received on or before December 31, 2015, the proceeds of the hotel | |
2 | tax generated by any and all hotels physically connected to the Rhode Island Convention Center | |
3 | shall be distributed as follows: twenty-seven percent (27%) shall be deposited as general revenues; | |
4 | thirty-one percent (31%) shall be given to the convention authority of the city of Providence; twelve | |
5 | percent (12%) shall be given to the greater Providence-Warwick convention and visitor's bureau; | |
6 | thirty percent (30%) shall be given to the Rhode Island convention center authority to be used in | |
7 | the furtherance of the purposes set forth in § 42-99-4. | |
8 | (b) For returns and tax received after December 31, 2015, the proceeds of the hotel tax | |
9 | generated by any and all hotels physically connected to the Rhode Island Convention Center shall | |
10 | be distributed as follows: twenty-eight percent (28%) shall be given to the convention authority of | |
11 | the city of Providence; twelve percent (12%) shall be given to the greater Providence-Warwick | |
12 | convention and visitor's bureau; and sixty percent (60%) shall be given to the Rhode Island | |
13 | Commerce Corporation established in chapter 64 of title 42. | |
14 | (c) The Rhode Island Convention Center Authority is authorized and empowered to enter | |
15 | into contracts with the Greater Providence-Warwick Convention and Visitors' Bureau in the | |
16 | furtherance of the purposes set forth in this chapter. | |
17 | (d) For returns and tax received on or after July 1, 2018 and on or before June 30, 2020, | |
18 | the proceeds of the hotel tax generated by any and all hotels physically connected to the Rhode | |
19 | Island Convention Center shall be distributed as follows: thirty percent (30%) shall be given to the | |
20 | convention authority of the city of Providence; twenty percent (20%) shall be given to the greater | |
21 | Providence-Warwick convention and visitor's bureau; and fifty percent (50%) shall be given to the | |
22 | Rhode Island Commerce Corporation established in chapter 64 of title 42. | |
23 | (e) For returns and tax received on or after July 1, 2020, the proceeds of the hotel tax | |
24 | generated by any and all hotels physically connected to the Rhode Island Convention Center shall | |
25 | be distributed as follows: twenty-five percent (25%) shall be given to the convention authority of | |
26 | the city of Providence; sixteen and seven tenths percent (16.7%) shall be given to the greater | |
27 | Providence-Warwick convention and visitor's bureau; sixteen and seven tenths percent (16.7%) of | |
28 | the tax shall be given to general revenue; and forty-one and six tenths percent (41.6%) shall be | |
29 | given to the Rhode Island commerce corporation established in chapter 64 of title 42. | |
30 | (f) With respect to the revenue collected by the division of taxation on behalf of each | |
31 | municipality in subsection (e) of this section, before distributing said revenue to the municipalities, | |
32 | a two percent (2%) administrative fee shall be deducted therefrom and transferred to the general | |
33 | fund. | |
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1 | SECTION 3. Chapter 44-1 of the General Laws entitled “State Tax Officials” is hereby | |
2 | amended by adding thereto the following section: | |
3 | 44-1-11.2 Set-off for delinquent taxes-Reciprocal Agreements for Refunds | |
4 | (a) Definitions | |
5 | (1) "federal payment offset" is any offset against federal nontax payments to collect state | |
6 | tax debts and/or any nontax debts owed to the state, a state agency or a quasi-public agency, to the | |
7 | extent permitted by law. | |
8 | (2) "state payment offset" is any offset against state tax refunds to collect federal nontax | |
9 | debts, to the extent permitted by law. | |
10 | (3) “debtor” is any person or entity that owes money to the state, a state agency or a quasi- | |
11 | public agency. | |
12 | (b) The tax administrator is hereby authorized to: | |
13 | (1) establish and implement a federal payment offset and state payment offset reciprocal | |
14 | program (State Reciprocal Program) with the United States Department of the Treasury pursuant | |
15 | to which the United States Department of the Treasury would offset federal nontax payments to | |
16 | collect state tax debts and/or any nontax debts owed to the state, a state agency, or a quasi-public | |
17 | agency and the tax administrator would offset state tax refunds to collect federal nontax debts; | |
18 | (2) enter into an agreement with the United States Department of the Treasury to implement | |
19 | the State Reciprocal Program; and, | |
20 | (3) charge the debtor a reasonable fee per transaction for each federal payment offset and | |
21 | such fee may be collected from the debtor by deducting the fee from the amount of the offset. | |
22 | (c) Federal and state payment offsets shall be subject to applicable notice requirements | |
23 | pursuant to 31 U.S.C. 3716(a) prior to said offset. | |
24 | (d) The payment offset process authorized in this section is in addition to the set-off of | |
25 | refunds of personal income tax in 44-30.1 and is not in substitution of that chapter for any other | |
26 | remedy available by law. | |
27 | (e) If any provision of this section or the application of this section is for any reason held | |
28 | invalid, illegal or unenforceable said holding shall not affect the legality, validity or enforceability | |
29 | of the rest of the section. | |
30 | SECTION 4. Effective October 1, 2020, section 44-18-7.3 of the General Laws in Chapter | |
31 | 44-18 entitled “Sales and Use Taxes – Liability and Computation” is hereby amended to read as | |
32 | follows: | |
33 | 44-18-7.3. Services defined. | |
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1 | (a) "Services" means all activities engaged in for other persons for a fee, retainer, | |
2 | commission, or other monetary charge, which activities involve the performance of a service in this | |
3 | state as distinguished from selling property. | |
4 | (b) The following businesses and services performed in this state, along with the applicable | |
5 | 2017 North American Industrial Classification System (NAICS) codes, are included in the | |
6 | definition of services: | |
7 | (1) Taxicab and limousine services including but not limited to: | |
8 | (i) Taxicab services including taxi dispatchers (485310); and | |
9 | (ii) Limousine services (485320). | |
10 | (2) Other road transportation service including but not limited to: | |
11 | (i) Charter bus service (485510); | |
12 | (ii) "Transportation network companies" (TNC) defined as an entity that uses a digital | |
13 | network to connect transportation network company riders to transportation network operators who | |
14 | provide prearranged rides. Any TNC operating in this state is a retailer as provided in § 44-18-15 | |
15 | and is required to file a business application and registration form and obtain a permit to make sales | |
16 | at retail with the tax administrator, to charge, collect, and remit Rhode Island sales and use tax; and | |
17 | (iii) All other transit and ground passenger transportation (485999). | |
18 | (3) Pet care services (812910) except veterinary and testing laboratories services. | |
19 | (4)(i) "Room reseller" or "reseller" means any person, except a tour operator as defined in | |
20 | § 42-63.1-2, having any right, permission, license, or other authority from or through a hotel as | |
21 | defined in § 42-63.1-2, to reserve, or arrange the transfer of occupancy of, accommodations the | |
22 | reservation or transfer of which is subject to this chapter, such that the occupant pays all or a portion | |
23 | of the rental and other fees to the room reseller or reseller. Room reseller or reseller shall include, | |
24 | but not be limited to, sellers of travel packages as defined in this section. Notwithstanding the | |
25 | provisions of any other law, where said reservation or transfer of occupancy is done using a room | |
26 | reseller or reseller, the application of the sales and use tax under §§ 44-18-18 and 44-18-20, and | |
27 | the hotel tax under § 44-18-36.1 shall be as follows: The room reseller or reseller is required to | |
28 | register with, and shall collect and pay to, the tax administrator the sales and use and hotel taxes, | |
29 | with said taxes being calculated upon the amount of rental and other fees paid by the occupant to | |
30 | the room reseller or reseller, less the amount of any rental and other fees paid by the room reseller | |
31 | or reseller to the hotel. The hotel shall collect and pay to the tax administrator said taxes upon the | |
32 | amount of rental and other fees paid to the hotel by the room reseller or reseller and/or the occupant. | |
33 | No assessment shall be made by the tax administrator against a hotel because of an incorrect | |
34 | remittance of the taxes under this chapter by a room reseller or reseller. No assessment shall be | |
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| |
1 | made by the tax administrator against a room reseller or reseller because of an incorrect remittance | |
2 | of the taxes under this chapter by a hotel. If the hotel has paid the taxes imposed under this chapter, | |
3 | the occupant and/or room reseller or reseller, as applicable, shall reimburse the hotel for said taxes. | |
4 | If the room reseller or reseller has paid said taxes, the occupant shall reimburse the room reseller | |
5 | or reseller for said taxes. Each hotel and room reseller or reseller shall add and collect, from the | |
6 | occupant or the room reseller or the reseller, the full amount of the taxes imposed on the rental and | |
7 | other fees. When added to the rental and other fees, the taxes shall be a debt owed by the occupant | |
8 | to the hotel or room reseller or reseller, as applicable, and shall be recoverable at law in the same | |
9 | manner as other debts. The amount of the taxes collected by the hotel and/or room reseller or | |
10 | reseller from the occupant under this chapter shall be stated and charged separately from the rental | |
11 | and other fees, and shall be shown separately on all records thereof, whether made at the time the | |
12 | transfer of occupancy occurs, or on any evidence of the transfer issued or used by the hotel or the | |
13 | room reseller or the reseller. A room reseller or reseller shall not be required to disclose to the | |
14 | occupant the amount of tax charged by the hotel; provided, however, the room reseller or reseller | |
15 | shall represent to the occupant that the separately stated taxes charged by the room reseller or | |
16 | reseller include taxes charged by the hotel. No person shall operate a hotel in this state, or act as a | |
17 | room reseller or reseller for any hotel in the state, unless the tax administrator has issued a permit | |
18 | pursuant to § 44-19-1. | |
19 | (ii) "Travel package" means a room, or rooms, bundled with one or more other, separate | |
20 | components of travel such as air transportation, car rental, or similar items, which travel package | |
21 | is charged to the customer or occupant for a single, retail price. When the room occupancy is | |
22 | bundled for a single consideration, with other property, services, amusement charges, or any other | |
23 | items, the separate sale of which would not otherwise be subject to tax under this chapter, the entire | |
24 | single consideration shall be treated as the rental or other fees for room occupancy subject to tax | |
25 | under this chapter; provided, however, that where the amount of the rental, or other fees for room | |
26 | occupancy is stated separately from the price of such other property, services, amusement charges, | |
27 | or other items, on any sales slip, invoice, receipt, or other statement given the occupant, and such | |
28 | rental and other fees are determined by the tax administrator to be reasonable in relation to the | |
29 | value of such other property, services, amusement charges, or other items, only such separately | |
30 | stated rental and other fees will be subject to tax under this chapter. The value of the transfer of any | |
31 | room, or rooms, bundled as part of a travel package may be determined by the tax administrator | |
32 | from the room reseller's and/or reseller's and/or hotel's books and records that are kept in the regular | |
33 | course of business. | |
34 | (5) Investigation, Guard, and Armored Car Services (561611, 561612 & 561613). | |
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| |
1 | (6) Hunting, Trapping and Shooting Services (114210 & that part of 713990 applicable to: | |
2 | archery ranges, recreational fishing clubs, fishing guide services, shooting galleries, hunting guide | |
3 | services, recreational gun clubs, recreational hunting clubs, fishing, hunting, and game outfitters, | |
4 | recreational rifle clubs, recreational shooting clubs, shooting ranges, skeet shooting facilities, and | |
5 | recreational trapshooting facilities | |
6 | (7) Lobbying Services as defined in § 42-139.1-3(a)(3) | |
7 | (8) Computer System Design and Related Services (541511, 541512, 541513, 541519) | |
8 | (c) All services as defined herein are required to file a business application and registration | |
9 | form and obtain a permit to make sales at retail with the tax administrator, to charge, collect, and | |
10 | remit Rhode Island sales and use tax. | |
11 | (d) The tax administrator is authorized to promulgate rules and regulations in accordance | |
12 | with the provisions of chapter 35 of title 42 to carry out the provisions, policies, and purposes of | |
13 | this chapter. | |
14 | SECTION 5. Effective January 1, 2021, section 44-18-7.3 of the General Laws in Chapter | |
15 | 44-18 entitled “Sales and Use Taxes – Liability and Computation” is hereby amended to read as | |
16 | follows: | |
17 | 44-18-7.3. Services defined. | |
18 | (a) "Services" means all activities engaged in for other persons for a fee, retainer, | |
19 | commission, or other monetary charge, which activities involve the performance of a service in this | |
20 | state as distinguished from selling property. | |
21 | (b) The following businesses and services performed in this state, along with the applicable | |
22 | 2017 North American Industrial Classification System (NAICS) codes, are included in the | |
23 | definition of services: | |
24 | (1) Taxicab and limousine services including but not limited to: | |
25 | (i) Taxicab services including taxi dispatchers (485310); and | |
26 | (ii) Limousine services (485320). | |
27 | (2) Other road transportation service including but not limited to: | |
28 | (i) Charter bus service (485510); | |
29 | (ii) "Transportation network companies" (TNC) defined as an entity that uses a digital | |
30 | network to connect transportation network company riders to transportation network operators who | |
31 | provide prearranged rides. Any TNC operating in this state is a retailer as provided in § 44-18-15 | |
32 | and is required to file a business application and registration form and obtain a permit to make sales | |
33 | at retail with the tax administrator, to charge, collect, and remit Rhode Island sales and use tax; and | |
34 | (iii) All other transit and ground passenger transportation (485999). | |
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| |
1 | (3) Pet care services (812910) except veterinary and testing laboratories services. | |
2 | (4)(i) "Room reseller" or "reseller" means any person, except a tour operator as defined in | |
3 | § 42-63.1-2, having any right, permission, license, or other authority from or through a hotel as | |
4 | defined in § 42-63.1-2, to reserve, or arrange the transfer of occupancy of, accommodations the | |
5 | reservation or transfer of which is subject to this chapter, such that the occupant pays all or a portion | |
6 | of the rental and other fees to the room reseller or reseller. Room reseller or reseller shall include, | |
7 | but not be limited to, sellers of travel packages as defined in this section. Notwithstanding the | |
8 | provisions of any other law, where said reservation or transfer of occupancy is done using a room | |
9 | reseller or reseller, the application of the sales and use tax under §§ 44-18-18 and 44-18-20, and | |
10 | the hotel tax under § 44-18-36.1 shall be as follows: The room reseller or reseller is required to | |
11 | register with, and shall collect and pay to, the tax administrator the sales and use and hotel taxes, | |
12 | with said taxes being calculated upon the amount of rental and other fees paid by the occupant to | |
13 | the room reseller or reseller, less the amount of any rental and other fees paid by the room reseller | |
14 | or reseller to the hotel. The hotel shall collect and pay to the tax administrator said taxes upon the | |
15 | amount of rental and other fees paid to the hotel by the room reseller or reseller and/or the occupant. | |
16 | No assessment shall be made by the tax administrator against a hotel because of an incorrect | |
17 | remittance of the taxes under this chapter by a room reseller or reseller. No assessment shall be | |
18 | made by the tax administrator against a room reseller or reseller because of an incorrect remittance | |
19 | of the taxes under this chapter by a hotel. If the hotel has paid the taxes imposed under this chapter, | |
20 | the occupant and/or room reseller or reseller, as applicable, shall reimburse the hotel for said taxes. | |
21 | If the room reseller or reseller has paid said taxes, the occupant shall reimburse the room reseller | |
22 | or reseller for said taxes. Each hotel and room reseller or reseller shall add and collect, from the | |
23 | occupant or the room reseller or the reseller, the full amount of the taxes imposed on the rental and | |
24 | other fees. When added to the rental and other fees, the taxes shall be a debt owed by the occupant | |
25 | to the hotel or room reseller or reseller, as applicable, and shall be recoverable at law in the same | |
26 | manner as other debts. The amount of the taxes collected by the hotel and/or room reseller or | |
27 | reseller from the occupant under this chapter shall be stated and charged separately from the rental | |
28 | and other fees, and shall be shown separately on all records thereof, whether made at the time the | |
29 | transfer of occupancy occurs, or on any evidence of the transfer issued or used by the hotel or the | |
30 | room reseller or the reseller. A room reseller or reseller shall not be required to disclose to the | |
31 | occupant the amount of tax charged by the hotel; provided, however, the room reseller or reseller | |
32 | shall represent to the occupant that the separately stated taxes charged by the room reseller or | |
33 | reseller include taxes charged by the hotel. No person shall operate a hotel in this state, or act as a | |
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| |
1 | room reseller or reseller for any hotel in the state, unless the tax administrator has issued a permit | |
2 | pursuant to § 44-19-1. | |
3 | (ii) "Travel package" means a room, or rooms, bundled with one or more other, separate | |
4 | components of travel such as air transportation, car rental, or similar items, which travel package | |
5 | is charged to the customer or occupant for a single, retail price. When the room occupancy is | |
6 | bundled for a single consideration, with other property, services, amusement charges, or any other | |
7 | items, the separate sale of which would not otherwise be subject to tax under this chapter, the entire | |
8 | single consideration shall be treated as the rental or other fees for room occupancy subject to tax | |
9 | under this chapter; provided, however, that where the amount of the rental, or other fees for room | |
10 | occupancy is stated separately from the price of such other property, services, amusement charges, | |
11 | or other items, on any sales slip, invoice, receipt, or other statement given the occupant, and such | |
12 | rental and other fees are determined by the tax administrator to be reasonable in relation to the | |
13 | value of such other property, services, amusement charges, or other items, only such separately | |
14 | stated rental and other fees will be subject to tax under this chapter. The value of the transfer of any | |
15 | room, or rooms, bundled as part of a travel package may be determined by the tax administrator | |
16 | from the room reseller's and/or reseller's and/or hotel's books and records that are kept in the regular | |
17 | course of business. | |
18 | (5) Investigation, Guard, and Armored Car Services (561611, 561612 & 561613). | |
19 | (6) Hunting, Trapping and Shooting Services (114210 & that part of 713990 applicable to: | |
20 | archery ranges, recreational fishing clubs, fishing guide services, shooting galleries, hunting guide | |
21 | services, recreational gun clubs, recreational hunting clubs, fishing, hunting, and game outfitters, | |
22 | recreational rifle clubs, recreational shooting clubs, shooting ranges, skeet shooting facilities, and | |
23 | recreational trapshooting facilities | |
24 | (7) Lobbying Services as defined in § 42-139.1-3(a)(3) | |
25 | (8) Computer System Design and Related Services (541511, 541512, 541513, 541519) | |
26 | (9) Interior Design Services (541410) | |
27 | (10) Couriers and Messengers (492110, 492210) (Couriers and Messengers services shall | |
28 | be distinct and separate from “delivery charges” as defined and taxed in this chapter.) | |
29 | (c) All services as defined herein are required to file a business application and registration | |
30 | form and obtain a permit to make sales at retail with the tax administrator, to charge, collect, and | |
31 | remit Rhode Island sales and use tax. | |
32 | (d) The tax administrator is authorized to promulgate rules and regulations in accordance | |
33 | with the provisions of chapter 35 of title 42 to carry out the provisions, policies, and purposes of | |
34 | this chapter. | |
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1 | SECTION 6. Sections 44-18-18.1, 44-18-30, and 44-18-36.1 of the General Laws in | |
2 | Chapter 44-18 entitled "Sales and Use Taxes – Liability and Computation" is hereby amended as | |
3 | follows: | |
4 | 44-18-18.1. Local meals and beverage tax. | |
5 | (a) There is hereby levied and imposed, upon every purchaser of a meal and/or beverage, | |
6 | in addition to all other taxes and fees now imposed by law, a local meals and beverage tax upon | |
7 | each and every meal and/or beverage sold within the state of Rhode Island in or from an eating | |
8 | and/or drinking establishment, whether prepared in the eating and/or drinking establishment or not | |
9 | and whether consumed at the premises or not, at a rate of one percent of the gross receipts. The tax | |
10 | shall be paid to the tax administrator by the retailer at the time and in the manner provided. | |
11 | (b) All sums received by the division of taxation under this section as taxes, penalties, or | |
12 | forfeitures, interest, costs of suit, and fines shall be distributed at least quarterly and credited and | |
13 | paid by the state treasurer to the city or town where the meals and beverages are delivered. With | |
14 | respect to the revenue collected by the division of taxation on behalf of each municipality in this | |
15 | section, before distributing said revenue to the municipalities, a two percent (2%) administrative | |
16 | fee shall be deducted therefrom and transferred to the general fund. | |
17 | (c) When used in this section, the following words have the following meanings: | |
18 | (1) "Beverage" means all nonalcoholic beverages, as well as alcoholic beverages, beer, | |
19 | lager beer, ale, porter, wine, similar fermented malt, or vinous liquor. | |
20 | (2) "Eating and/or drinking establishment" means and includes restaurants, bars, taverns, | |
21 | lounges, cafeterias, lunch counters, drive-ins, roadside ice cream and refreshment stands, fish-and- | |
22 | chip places, fried chicken places, pizzerias, food-and-drink concessions, or similar facilities in | |
23 | amusement parks, bowling alleys, clubs, caterers, drive-in theatres, industrial plants, race tracks, | |
24 | shore resorts or other locations, lunch carts, mobile canteens and other similar vehicles, and other | |
25 | like places of business that furnish or provide facilities for immediate consumption of food at tables, | |
26 | chairs, or, counters or from trays, plates, cups, or other tableware, or in parking facilities provided | |
27 | primarily for the use of patrons in consuming products purchased at the location. Ordinarily, eating | |
28 | establishment does not mean and include food stores and supermarkets. Eating establishments does | |
29 | not mean "vending machines," a self-contained automatic device that dispenses for sale foods, | |
30 | beverages, or confection products. Retailers selling prepared foods in bulk, either in customer- | |
31 | furnished containers or in the seller's containers, for example "Soup and Sauce" establishments, are | |
32 | deemed to be selling prepared foods ordinarily for immediate consumption and, as such, are | |
33 | considered eating establishments. | |
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1 | (3) "Meal" means any prepared food or beverage offered or held out for sale by an eating | |
2 | and/or drinking establishment for the purpose of being consumed by any person to satisfy the | |
3 | appetite and that is ready for immediate consumption. All such food and beverage, unless otherwise | |
4 | specifically exempted or excluded herein shall be included, whether intended to be consumed on | |
5 | the seller's premises or elsewhere, whether designated as breakfast, lunch, snack, dinner, supper, or | |
6 | by some other name, and without regard to the manner, time, or place of service. | |
7 | (d) This local meals and beverage tax shall be administered and collected by the division | |
8 | of taxation, and unless provided to the contrary in this chapter, all of the administration, collection, | |
9 | and other provisions of chapters 18 and 19 of this title apply. | |
10 | 44-18-30. Gross receipts exempt from sales and use taxes. | |
11 | There are exempted from the taxes imposed by this chapter the following gross receipts: | |
12 | (1) Sales and uses beyond constitutional power of state. From the sale and from the storage, | |
13 | use, or other consumption in this state of tangible personal property the gross receipts from the sale | |
14 | of which, or the storage, use, or other consumption of which, this state is prohibited from taxing | |
15 | under the Constitution of the United States or under the constitution of this state. | |
16 | (2) Newspapers. | |
17 | (i) From the sale and from the storage, use, or other consumption in this state of any | |
18 | newspaper. | |
19 | (ii) "Newspaper" means an unbound publication printed on newsprint that contains news, | |
20 | editorial comment, opinions, features, advertising matter, and other matters of public interest. | |
21 | (iii) "Newspaper" does not include a magazine, handbill, circular, flyer, sales catalog, or | |
22 | similar item unless the item is printed for, and distributed as, a part of a newspaper. | |
23 | (3) School meals. From the sale and from the storage, use, or other consumption in this | |
24 | state of meals served by public, private, or parochial schools, school districts, colleges, universities, | |
25 | student organizations, and parent-teacher associations to the students or teachers of a school, | |
26 | college, or university whether the meals are served by the educational institutions or by a food | |
27 | service or management entity under contract to the educational institutions. | |
28 | (4) Containers. | |
29 | (i) From the sale and from the storage, use, or other consumption in this state of: | |
30 | (A) Non-returnable containers, including boxes, paper bags, and wrapping materials that | |
31 | are biodegradable and all bags and wrapping materials utilized in the medical and healing arts, | |
32 | when sold without the contents to persons who place the contents in the container and sell the | |
33 | contents with the container. | |
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| |
1 | (B) Containers when sold with the contents if the sale price of the contents is not required | |
2 | to be included in the measure of the taxes imposed by this chapter. | |
3 | (C) Returnable containers when sold with the contents in connection with a retail sale of | |
4 | the contents or when resold for refilling. | |
5 | (D) Keg and barrel containers, whether returnable or not, when sold to alcoholic beverage | |
6 | producers who place the alcoholic beverages in the containers. | |
7 | (ii) As used in this subdivision, the term "returnable containers" means containers of a kind | |
8 | customarily returned by the buyer of the contents for reuse. All other containers are "non-returnable | |
9 | containers." | |
10 | (5)(i) Charitable, educational, and religious organizations. From the sale to, as in defined | |
11 | in this section, and from the storage, use, and other consumption in this state, or any other state of | |
12 | the United States of America, of tangible personal property by hospitals not operated for a profit; | |
13 | "educational institutions" as defined in subdivision (18) not operated for a profit; churches, | |
14 | orphanages, and other institutions or organizations operated exclusively for religious or charitable | |
15 | purposes; interest-free loan associations not operated for profit; nonprofit, organized sporting | |
16 | leagues and associations and bands for boys and girls under the age of nineteen (19) years; the | |
17 | following vocational student organizations that are state chapters of national vocational student | |
18 | organizations: Distributive Education Clubs of America (DECA); Future Business Leaders of | |
19 | America, Phi Beta Lambda (FBLA/PBL); Future Farmers of America (FFA); Future Homemakers | |
20 | of America/Home Economics Related Occupations (FHA/HERD); Vocational Industrial Clubs of | |
21 | America (VICA); organized nonprofit golden age and senior citizens clubs for men and women; | |
22 | and parent-teacher associations; and from the sale, storage, use, and other consumption in this state, | |
23 | of and by the Industrial Foundation of Burrillville, a Rhode Island domestic nonprofit corporation. | |
24 | (ii) In the case of contracts entered into with the federal government, its agencies, or | |
25 | instrumentalities, this state, or any other state of the United States of America, its agencies, any | |
26 | city, town, district, or other political subdivision of the states; hospitals not operated for profit; | |
27 | educational institutions not operated for profit; churches, orphanages, and other institutions or | |
28 | organizations operated exclusively for religious or charitable purposes, the contractor may purchase | |
29 | such materials and supplies (materials and/or supplies are defined as those that are essential to the | |
30 | project) that are to be utilized in the construction of the projects being performed under the contracts | |
31 | without payment of the tax. | |
32 | (iii) The contractor shall not charge any sales or use tax to any exempt agency, institution, | |
33 | or organization but shall in that instance provide his or her suppliers with certificates in the form | |
34 | as determined by the division of taxation showing the reason for exemption and the contractor's | |
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| |
1 | records must substantiate the claim for exemption by showing the disposition of all property so | |
2 | purchased. If any property is then used for a nonexempt purpose, the contractor must pay the tax | |
3 | on the property used. | |
4 | (6) Gasoline. From the sale and from the storage, use, or other consumption in this state | |
5 | of: (i) Gasoline and other products taxed under chapter 36 of title 31 and (ii) Fuels used for the | |
6 | propulsion of airplanes. | |
7 | (7) Purchase for manufacturing purposes. | |
8 | (i) From the sale and from the storage, use, or other consumption in this state of computer | |
9 | software, tangible personal property, electricity, natural gas, artificial gas, steam, refrigeration, and | |
10 | water, when the property or service is purchased for the purpose of being manufactured into a | |
11 | finished product for resale and becomes an ingredient, component, or integral part of the | |
12 | manufactured, compounded, processed, assembled, or prepared product, or if the property or | |
13 | service is consumed in the process of manufacturing for resale computer software, tangible personal | |
14 | property, electricity, natural gas, artificial gas, steam, refrigeration, or water. | |
15 | (ii) "Consumed" means destroyed, used up, or worn out to the degree or extent that the | |
16 | property cannot be repaired, reconditioned, or rendered fit for further manufacturing use. | |
17 | (iii) "Consumed" includes mere obsolescence. | |
18 | (iv) "Manufacturing" means and includes: manufacturing, compounding, processing, | |
19 | assembling, preparing, or producing. | |
20 | (v) "Process of manufacturing" means and includes all production operations performed in | |
21 | the producing or processing room, shop, or plant, insofar as the operations are a part of and | |
22 | connected with the manufacturing for resale of tangible personal property, electricity, natural gas, | |
23 | artificial gas, steam, refrigeration, or water and all production operations performed insofar as the | |
24 | operations are a part of and connected with the manufacturing for resale of computer software. | |
25 | (vi) "Process of manufacturing" does not mean or include administration operations such | |
26 | as general office operations, accounting, collection, or sales promotion, nor does it mean or include | |
27 | distribution operations that occur subsequent to production operations, such as handling, storing, | |
28 | selling, and transporting the manufactured products, even though the administration and | |
29 | distribution operations are performed by, or in connection with, a manufacturing business. | |
30 | (8) State and political subdivisions. From the sale to, and from the storage, use, or other | |
31 | consumption by, this state, any city, town, district, or other political subdivision of this state. Every | |
32 | redevelopment agency created pursuant to chapter 31 of title 45 is deemed to be a subdivision of | |
33 | the municipality where it is located. | |
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| |
1 | (9) Food and food ingredients. From the sale and storage, use, or other consumption in this | |
2 | state of food and food ingredients as defined in § 44-18-7.1(l). | |
3 | For the purposes of this exemption "food and food ingredients" shall not include candy, soft drinks, | |
4 | dietary supplements, alcoholic beverages, tobacco, food sold through vending machines, or | |
5 | prepared food, as those terms are defined in § 44-18-7.1, unless the prepared food is: | |
6 | (i) Sold by a seller whose primary NAICS classification is manufacturing in sector 311, | |
7 | except sub-sector 3118, (bakeries); | |
8 | (ii) Sold in an unheated state by weight or volume as a single item; | |
9 | (iii) Bakery items, including: bread, rolls, buns, biscuits, bagels, croissants, pastries, | |
10 | donuts, danish, cakes, tortes, pies, tarts, muffins, bars, cookies, tortillas; and | |
11 | is not sold with utensils provided by the seller, including: plates, knives, forks, spoons, glasses, | |
12 | cups, napkins, or straws. | |
13 | (10) Medicines, drugs, and durable medical equipment. From the sale and from the storage, | |
14 | use, or other consumption in this state, of: | |
15 | (i) "Drugs" as defined in § 44-18-7.1(h)(i), sold on prescriptions, medical oxygen, and | |
16 | insulin whether or not sold on prescription. For purposes of this exemption drugs shall not include | |
17 | over-the-counter drugs and grooming and hygiene products as defined in § 44-18-7.1(h)(iii). | |
18 | (ii) Durable medical equipment as defined in § 44-18-7.1(k) for home use only, including, | |
19 | but not limited to: syringe infusers, ambulatory drug delivery pumps, hospital beds, convalescent | |
20 | chairs, and chair lifts. Supplies used in connection with syringe infusers and ambulatory drug | |
21 | delivery pumps that are sold on prescription to individuals to be used by them to dispense or | |
22 | administer prescription drugs, and related ancillary dressings and supplies used to dispense or | |
23 | administer prescription drugs, shall also be exempt from tax. | |
24 | (11) Prosthetic devices and mobility enhancing equipment. From the sale and from the | |
25 | storage, use, or other consumption in this state, of prosthetic devices as defined in § 44-18-7.1(t), | |
26 | sold on prescription, including, but not limited to: artificial limbs, dentures, spectacles, eyeglasses, | |
27 | and artificial eyes; artificial hearing devices and hearing aids, whether or not sold on prescription; | |
28 | and mobility enhancing equipment as defined in § 44-18-7.1(p), including wheelchairs, crutches, | |
29 | and canes. | |
30 | (12) Coffins, caskets, urns, shrouds and burial garments. From the sale and from the | |
31 | storage, use, or other consumption in this state of coffins, caskets, urns, shrouds, and other burial | |
32 | garments that are ordinarily sold by a funeral director as part of the business of funeral directing. | |
33 | (13) Motor vehicles sold to nonresidents. | |
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1 | (i) From the sale, subsequent to June 30, 1958, of a motor vehicle to a bona fide nonresident | |
2 | of this state who does not register the motor vehicle in this state, whether the sale or delivery of the | |
3 | motor vehicle is made in this state or at the place of residence of the nonresident. A motor vehicle | |
4 | sold to a bona fide nonresident whose state of residence does not allow a like exemption to its | |
5 | nonresidents is not exempt from the tax imposed under § 44-18-20. In that event, the bona fide | |
6 | nonresident pays a tax to Rhode Island on the sale at a rate equal to the rate that would be imposed | |
7 | in his or her state of residence not to exceed the rate that would have been imposed under § 44-18- | |
8 | 20. Notwithstanding any other provisions of law, a licensed motor vehicle dealer shall add and | |
9 | collect the tax required under this subdivision and remit the tax to the tax administrator under the | |
10 | provisions of chapters 18 and 19 of this title. When a Rhode Island licensed, motor vehicle dealer | |
11 | is required to add and collect the sales and use tax on the sale of a motor vehicle to a bona fide | |
12 | nonresident as provided in this section, the dealer in computing the tax takes into consideration the | |
13 | law of the state of the nonresident as it relates to the trade-in of motor vehicles. | |
14 | (ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may | |
15 | require any licensed motor vehicle dealer to keep records of sales to bona fide nonresidents as the | |
16 | tax administrator deems reasonably necessary to substantiate the exemption provided in this | |
17 | subdivision, including the affidavit of a licensed motor vehicle dealer that the purchaser of the | |
18 | motor vehicle was the holder of, and had in his or her possession a valid out-of-state motor vehicle | |
19 | registration or a valid out-of-state driver's license. | |
20 | (iii) Any nonresident who registers a motor vehicle in this state within ninety (90) days of | |
21 | the date of its sale to him or her is deemed to have purchased the motor vehicle for use, storage, or | |
22 | other consumption in this state, and is subject to, and liable for, the use tax imposed under the | |
23 | provisions of § 44-18-20. | |
24 | (14) Sales in public buildings by blind people. From the sale and from the storage, use, or | |
25 | other consumption in all public buildings in this state of all products or wares by any person | |
26 | licensed under § 40-9-11.1. | |
27 | (15) Air and water pollution control facilities. From the sale, storage, use, or other | |
28 | consumption in this state of tangible personal property or supplies acquired for incorporation into | |
29 | or used and consumed in the operation of a facility, the primary purpose of which is to aid in the | |
30 | control of the pollution or contamination of the waters or air of the state, as defined in chapter 12 | |
31 | of title 46 and chapter 23 of title 23, respectively, and that has been certified as approved for that | |
32 | purpose by the director of environmental management. The director of environmental management | |
33 | may certify to a portion of the tangible personal property or supplies acquired for incorporation | |
34 | into those facilities or used and consumed in the operation of those facilities to the extent that that | |
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1 | portion has as its primary purpose the control of the pollution or contamination of the waters or air | |
2 | of this state. As used in this subdivision, "facility" means any land, facility, device, building, | |
3 | machinery, or equipment. | |
4 | (16) Camps. From the rental charged for living quarters, or sleeping, or housekeeping | |
5 | accommodations at camps or retreat houses operated by religious, charitable, educational, or other | |
6 | organizations and associations mentioned in subsection (5), or by privately owned and operated | |
7 | summer camps for children. | |
8 | (17) Certain institutions. From the rental charged for living or sleeping quarters in an | |
9 | institution licensed by the state for the hospitalization, custodial, or nursing care of human beings. | |
10 | (18) Educational institutions. From the rental charged by any educational institution for | |
11 | living quarters, or sleeping, or housekeeping accommodations or other rooms or accommodations | |
12 | to any student or teacher necessitated by attendance at an educational institution. "Educational | |
13 | institution" as used in this section means an institution of learning not operated for profit that is | |
14 | empowered to confer diplomas, educational, literary, or academic degrees; that has a regular | |
15 | faculty, curriculum, and organized body of pupils or students in attendance throughout the usual | |
16 | school year; that keeps and furnishes to students and others records required and accepted for | |
17 | entrance to schools of secondary, collegiate, or graduate rank; and no part of the net earnings of | |
18 | which inures to the benefit of any individual. | |
19 | (19) Motor vehicle and adaptive equipment for persons with disabilities. | |
20 | (i) From the sale of: (A) Special adaptations; (B) The component parts of the special | |
21 | adaptations; or (C) A specially adapted motor vehicle; provided that the owner furnishes to the tax | |
22 | administrator an affidavit of a licensed physician to the effect that the specially adapted motor | |
23 | vehicle is necessary to transport a family member with a disability or where the vehicle has been | |
24 | specially adapted to meet the specific needs of the person with a disability. This exemption applies | |
25 | to not more than one motor vehicle owned and registered for personal, noncommercial use. | |
26 | (ii) For the purpose of this subsection the term "special adaptations" includes, but is not | |
27 | limited to: wheelchair lifts, wheelchair carriers, wheelchair ramps, wheelchair securements, hand | |
28 | controls, steering devices, extensions, relocations, and crossovers of operator controls, power- | |
29 | assisted controls, raised tops or dropped floors, raised entry doors, or alternative signaling devices | |
30 | to auditory signals. | |
31 | (iii) From the sale of: (a) Special adaptations, (b) The component parts of the special | |
32 | adaptations, for a "wheelchair accessible taxicab" as defined in § 39-14-1, and/or a "wheelchair | |
33 | accessible public motor vehicle" as defined in § 39-14.1-1. | |
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1 | (iv) For the purpose of this subdivision the exemption for a "specially adapted motor | |
2 | vehicle" means a use tax credit not to exceed the amount of use tax that would otherwise be due on | |
3 | the motor vehicle, exclusive of any adaptations. The use tax credit is equal to the cost of the special | |
4 | adaptations, including installation. | |
5 | (20) Heating fuels. From the sale and from the storage, use, or other consumption in this | |
6 | state of every type of heating fuel. | |
7 | (21) Electricity and gas. From the sale and from the storage, use, or other consumption in | |
8 | this state of electricity and gas. | |
9 | (22) Manufacturing machinery and equipment. | |
10 | (i) From the sale and from the storage, use, or other consumption in this state of tools, dies, | |
11 | molds, machinery, equipment (including replacement parts), and related items to the extent used in | |
12 | an industrial plant in connection with the actual manufacture, conversion, or processing of tangible | |
13 | personal property, or to the extent used in connection with the actual manufacture, conversion, or | |
14 | processing of computer software as that term is utilized in industry numbers 7371, 7372, and 7373 | |
15 | in the standard industrial classification manual prepared by the Technical Committee on Industrial | |
16 | Classification, Office of Statistical Standards, Executive Office of the President, United States | |
17 | Bureau of the Budget, as revised from time to time, to be sold, or that machinery and equipment | |
18 | used in the furnishing of power to an industrial manufacturing plant. For the purposes of this | |
19 | subdivision, "industrial plant" means a factory at a fixed location primarily engaged in the | |
20 | manufacture, conversion, or processing of tangible personal property to be sold in the regular | |
21 | course of business; | |
22 | (ii) Machinery and equipment and related items are not deemed to be used in connection | |
23 | with the actual manufacture, conversion, or processing of tangible personal property, or in | |
24 | connection with the actual manufacture, conversion, or processing of computer software as that | |
25 | term is utilized in industry numbers 7371, 7372, and 7373 in the standard industrial classification | |
26 | manual prepared by the Technical Committee on Industrial Classification, Office of Statistical | |
27 | Standards, Executive Office of the President, United States Bureau of the Budget, as revised from | |
28 | time to time, to be sold to the extent the property is used in administration or distribution operations; | |
29 | (iii) Machinery and equipment and related items used in connection with the actual | |
30 | manufacture, conversion, or processing of any computer software or any tangible personal property | |
31 | that is not to be sold and that would be exempt under subdivision (7) or this subdivision if purchased | |
32 | from a vendor or machinery and equipment and related items used during any manufacturing, | |
33 | converting, or processing function is exempt under this subdivision even if that operation, function, | |
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| |
1 | or purpose is not an integral or essential part of a continuous production flow or manufacturing | |
2 | process; | |
3 | (iv) Where a portion of a group of portable or mobile machinery is used in connection with | |
4 | the actual manufacture, conversion, or processing of computer software or tangible personal | |
5 | property to be sold, as previously defined, that portion, if otherwise qualifying, is exempt under | |
6 | this subdivision even though the machinery in that group is used interchangeably and not otherwise | |
7 | identifiable as to use. | |
8 | (23) Trade-in value of motor vehicles. From the sale and from the storage, use, or other | |
9 | consumption in this state of so much of the purchase price paid for a new or used automobile as is | |
10 | allocated for a trade-in allowance on the automobile of the buyer given in trade to the seller, or of | |
11 | the proceeds applicable only to the automobile as are received from the manufacturer of | |
12 | automobiles for the repurchase of the automobile whether the repurchase was voluntary or not | |
13 | towards the purchase of a new or used automobile by the buyer. For the purpose of this subdivision, | |
14 | the word "automobile" means a private passenger automobile not used for hire and does not refer | |
15 | to any other type of motor vehicle. | |
16 | (24) Precious metal bullion. | |
17 | (i) From the sale and from the storage, use, or other consumption in this state of precious | |
18 | metal bullion, substantially equivalent to a transaction in securities or commodities. | |
19 | (ii) For purposes of this subdivision, "precious metal bullion" means any elementary | |
20 | precious metal that has been put through a process of smelting or refining, including, but not limited | |
21 | to: gold, silver, platinum, rhodium, and chromium, and that is in a state or condition that its value | |
22 | depends upon its content and not upon its form. | |
23 | (iii) The term does not include fabricated precious metal that has been processed or | |
24 | manufactured for some one or more specific and customary industrial, professional, or artistic uses. | |
25 | (25) Commercial vessels. From sales made to a commercial ship, barge, or other vessel of | |
26 | fifty (50) tons burden or over, primarily engaged in interstate or foreign commerce, and from the | |
27 | repair, alteration, or conversion of the vessels, and from the sale of property purchased for the use | |
28 | of the vessels including provisions, supplies, and material for the maintenance and/or repair of the | |
29 | vessels. | |
30 | (26) Commercial fishing vessels. From the sale and from the storage, use, or other | |
31 | consumption in this state of vessels and other watercraft that are in excess of five (5) net tons and | |
32 | that are used exclusively for "commercial fishing," as defined in this subdivision, and from the | |
33 | repair, alteration, or conversion of those vessels and other watercraft, and from the sale of property | |
34 | purchased for the use of those vessels and other watercraft including provisions, supplies, and | |
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| |
1 | material for the maintenance and/or repair of the vessels and other watercraft and the boats nets, | |
2 | cables, tackle, and other fishing equipment appurtenant to or used in connection with the | |
3 | commercial fishing of the vessels and other watercraft. "Commercial fishing" means taking or | |
4 | attempting to take any fish, shellfish, crustacea, or bait species with the intent of disposing of it for | |
5 | profit or by sale, barter, trade, or in commercial channels. The term does not include subsistence | |
6 | fishing, i.e., the taking for personal use and not for sale or barter; or sport fishing; but shall include | |
7 | vessels and other watercraft with a Rhode Island party and charter boat license issued by the | |
8 | department of environmental management pursuant to § 20-2-27.1 that meet the following criteria: | |
9 | (i) The operator must have a current United States Coast Guard (U.S.C.G.) license to carry | |
10 | passengers for hire; (ii) U.S.C.G. vessel documentation in the coast wide fishery trade; (iii) | |
11 | U.S.C.G. vessel documentation as to proof of Rhode Island home port status or a Rhode Island boat | |
12 | registration to prove Rhode Island home port status; and (iv) The vessel must be used as a | |
13 | commercial passenger carrying fishing vessel to carry passengers for fishing. The vessel must be | |
14 | able to demonstrate that at least fifty percent (50%) of its annual gross income derives from charters | |
15 | or provides documentation of a minimum of one hundred (100) charter trips annually; and (v) The | |
16 | vessel must have a valid Rhode Island party and charter boat license. The tax administrator shall | |
17 | implement the provisions of this subdivision by promulgating rules and regulations relating thereto. | |
18 | (27) Clothing and footwear. From the sales of articles of clothing, including footwear, | |
19 | intended to be worn or carried on or about the human body for sales prior to October 1, 2012. | |
20 | Effective October 1, 2012, the exemption will apply to the sales of articles of clothing, including | |
21 | footwear, intended to be worn or carried on or about the human body up to two hundred and fifty | |
22 | dollars ($250) of the sales price per item. For the purposes of this section, "clothing or footwear" | |
23 | does not include clothing accessories or equipment or special clothing or footwear primarily | |
24 | designed for athletic activity or protective use as these terms are defined in section 44-18-7.1(f). In | |
25 | recognition of the work being performed by the streamlined sales and use tax governing board, | |
26 | upon passage of any federal law that authorizes states to require remote sellers to collect and remit | |
27 | sales and use taxes, this unlimited exemption will apply as it did prior to October 1, 2012. The | |
28 | unlimited exemption on sales of clothing and footwear shall take effect on the date that the state | |
29 | requires remote sellers to collect and remit sales and use taxes. | |
30 | (28) Water for residential use. From the sale and from the storage, use, or other | |
31 | consumption in this state of water furnished for domestic use by occupants of residential premises. | |
32 | (29) Bibles. [Unconstitutional; see Ahlburn v. Clark, 728 A.2d 449 (R.I. 1999); see Notes | |
33 | to Decisions.] From the sale and from the storage, use, or other consumption in the state of any | |
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| |
1 | canonized scriptures of any tax-exempt nonprofit religious organization including, but not limited | |
2 | to, the Old Testament and the New Testament versions. | |
3 | (30) Boats. | |
4 | (i) From the sale of a boat or vessel to a bona fide nonresident of this state who does not | |
5 | register the boat or vessel in this state or document the boat or vessel with the United States | |
6 | government at a home port within the state, whether the sale or delivery of the boat or vessel is | |
7 | made in this state or elsewhere; provided, that the nonresident transports the boat within thirty (30) | |
8 | days after delivery by the seller outside the state for use thereafter solely outside the state. | |
9 | (ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may | |
10 | require the seller of the boat or vessel to keep records of the sales to bona fide nonresidents as the | |
11 | tax administrator deems reasonably necessary to substantiate the exemption provided in this | |
12 | subdivision, including the affidavit of the seller that the buyer represented himself or herself to be | |
13 | a bona fide nonresident of this state and of the buyer that he or she is a nonresident of this state. | |
14 | (31) Youth activities equipment. From the sale, storage, use, or other consumption in this | |
15 | state of items for not more than twenty dollars ($20.00) each by nonprofit Rhode Island | |
16 | eleemosynary organizations, for the purposes of youth activities that the organization is formed to | |
17 | sponsor and support; and by accredited elementary and secondary schools for the purposes of the | |
18 | schools or of organized activities of the enrolled students. | |
19 | (32) Farm equipment. From the sale and from the storage or use of machinery and | |
20 | equipment used directly for commercial farming and agricultural production; including, but not | |
21 | limited to: tractors, ploughs, harrows, spreaders, seeders, milking machines, silage conveyors, | |
22 | balers, bulk milk storage tanks, trucks with farm plates, mowers, combines, irrigation equipment, | |
23 | greenhouses and greenhouse coverings, graders and packaging machines, tools and supplies and | |
24 | other farming equipment, including replacement parts appurtenant to or used in connection with | |
25 | commercial farming and tools and supplies used in the repair and maintenance of farming | |
26 | equipment. "Commercial farming" means the keeping or boarding of five (5) or more horses or the | |
27 | production within this state of agricultural products, including, but not limited to, field or orchard | |
28 | crops, livestock, dairy, and poultry, or their products, where the keeping, boarding, or production | |
29 | provides at least two thousand five hundred dollars ($2,500) in annual gross sales to the operator, | |
30 | whether an individual, a group, a partnership, or a corporation for exemptions issued prior to July | |
31 | 1, 2002. For exemptions issued or renewed after July 1, 2002, there shall be two (2) levels. Level I | |
32 | shall be based on proof of annual, gross sales from commercial farming of at least twenty-five | |
33 | hundred dollars ($2,500) and shall be valid for purchases subject to the exemption provided in this | |
34 | subdivision except for motor vehicles with an excise tax value of five thousand dollars ($5,000) or | |
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1 | greater. Level II shall be based on proof of annual gross sales from commercial farming of at least | |
2 | ten thousand dollars ($10,000) or greater and shall be valid for purchases subject to the exemption | |
3 | provided in this subdivision including motor vehicles with an excise tax value of five thousand | |
4 | dollars ($5,000) or greater. For the initial issuance of the exemptions, proof of the requisite amount | |
5 | of annual gross sales from commercial farming shall be required for the prior year; for any renewal | |
6 | of an exemption granted in accordance with this subdivision at either level I or level II, proof of | |
7 | gross annual sales from commercial farming at the requisite amount shall be required for each of | |
8 | the prior two (2) years. Certificates of exemption issued or renewed after July 1, 2002, shall clearly | |
9 | indicate the level of the exemption and be valid for four (4) years after the date of issue. This | |
10 | exemption applies even if the same equipment is used for ancillary uses, or is temporarily used for | |
11 | a non-farming or a non-agricultural purpose, but shall not apply to motor vehicles acquired after | |
12 | July 1, 2002, unless the vehicle is a farm vehicle as defined pursuant to § 31-1-8 and is eligible for | |
13 | registration displaying farm plates as provided for in § 31-3-31. | |
14 | (33) Compressed air. From the sale and from the storage, use, or other consumption in the | |
15 | state of compressed air. | |
16 | (34) Flags. From the sale and from the storage, consumption, or other use in this state of | |
17 | United States, Rhode Island or POW-MIA flags. | |
18 | (35) Motor vehicle and adaptive equipment to certain veterans. From the sale of a motor | |
19 | vehicle and adaptive equipment to and for the use of a veteran with a service-connected loss of or | |
20 | the loss of use of a leg, foot, hand, or arm, or any veteran who is a double amputee, whether service | |
21 | connected or not. The motor vehicle must be purchased by and especially equipped for use by the | |
22 | qualifying veteran. Certificate of exemption or refunds of taxes paid is granted under rules or | |
23 | regulations that the tax administrator may prescribe. | |
24 | (36) Textbooks. From the sale and from the storage, use, or other consumption in this state | |
25 | of textbooks by an "educational institution," as defined in subsection (18) of this section, and any | |
26 | educational institution within the purview of § 16-63-9(4), and used textbooks by any purveyor. | |
27 | (37) Tangible personal property and supplies used in on-site hazardous waste recycling, | |
28 | reuse, or treatment. From the sale, storage, use, or other consumption in this state of tangible | |
29 | personal property or supplies used or consumed in the operation of equipment, the exclusive | |
30 | function of which is the recycling, reuse, or recovery of materials (other than precious metals, as | |
31 | defined in subdivision (24)(ii) of this section) from the treatment of "hazardous wastes," as defined | |
32 | in § 23-19.1-4, where the "hazardous wastes" are generated in Rhode Island solely by the same | |
33 | taxpayer and where the personal property is located at, in, or adjacent to a generating facility of the | |
34 | taxpayer in Rhode Island. The taxpayer shall procure an order from the director of the department | |
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1 | of environmental management certifying that the equipment and/or supplies as used or consumed, | |
2 | qualify for the exemption under this subdivision. If any information relating to secret processes or | |
3 | methods of manufacture, production, or treatment is disclosed to the department of environmental | |
4 | management only to procure an order, and is a "trade secret" as defined in § 28-21-10(b), it is not | |
5 | open to public inspection or publicly disclosed unless disclosure is required under chapter 21 of | |
6 | title 28 or chapter 24.4 of title 23. | |
7 | (38) Promotional and product literature of boat manufacturers. From the sale and from | |
8 | the storage, use, or other consumption of promotional and product literature of boat manufacturers | |
9 | shipped to points outside of Rhode Island that either: (i) Accompany the product that is sold; (ii) | |
10 | Are shipped in bulk to out-of-state dealers for use in the sale of the product; or (iii) Are mailed to | |
11 | customers at no charge. | |
12 | (39) Food items paid for by food stamps. From the sale and from the storage, use, or other | |
13 | consumption in this state of eligible food items payment for which is properly made to the retailer | |
14 | in the form of U.S. government food stamps issued in accordance with the Food Stamp Act of 1977, | |
15 | 7 U.S.C. § 2011 et seq. | |
16 | (40) Transportation charges. From the sale or hiring of motor carriers as defined in § 39- | |
17 | 12-2(l) to haul goods, when the contract or hiring cost is charged by a motor freight tariff filed with | |
18 | the Rhode Island public utilities commission on the number of miles driven or by the number of | |
19 | hours spent on the job. | |
20 | (41) Trade-in value of boats. From the sale and from the storage, use, or other consumption | |
21 | in this state of so much of the purchase price paid for a new or used boat as is allocated for a trade- | |
22 | in allowance on the boat of the buyer given in trade to the seller or of the proceeds applicable only | |
23 | to the boat as are received from an insurance claim as a result of a stolen or damaged boat, towards | |
24 | the purchase of a new or used boat by the buyer. | |
25 | (42) Equipment used for research and development. From the sale and from the storage, | |
26 | use, or other consumption of equipment to the extent used for research and development purposes | |
27 | by a qualifying firm. For the purposes of this subsection, "qualifying firm" means a business for | |
28 | which the use of research and development equipment is an integral part of its operation and | |
29 | "equipment" means scientific equipment, computers, software, and related items. | |
30 | (43) Coins. From the sale and from the other consumption in this state of coins having | |
31 | numismatic or investment value. | |
32 | (44) Farm structure construction materials. Lumber, hardware, and other materials used | |
33 | in the new construction of farm structures, including production facilities such as, but not limited | |
34 | to: farrowing sheds, free stall and stanchion barns, milking parlors, silos, poultry barns, laying | |
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| |
1 | houses, fruit and vegetable storages, rooting cellars, propagation rooms, greenhouses, packing | |
2 | rooms, machinery storage, seasonal farm worker housing, certified farm markets, bunker and trench | |
3 | silos, feed storage sheds, and any other structures used in connection with commercial farming. | |
4 | (45) Telecommunications carrier access service. Carrier access service or | |
5 | telecommunications service when purchased by a telecommunications company from another | |
6 | telecommunications company to facilitate the provision of telecommunications service. | |
7 | (46) Boats or vessels brought into the state exclusively for winter storage, maintenance, | |
8 | repair, or sale. Notwithstanding the provisions of §§ 44-18-10, 44-18-11 and 44-18-20, the tax | |
9 | imposed by § 44-18-20 is not applicable for the period commencing on the first day of October in | |
10 | any year up to and including the 30th day of April next succeeding with respect to the use of any | |
11 | boat or vessel within this state exclusively for purposes of: (i) Delivery of the vessel to a facility in | |
12 | this state for storage, including dry storage and storage in water by means of apparatus preventing | |
13 | ice damage to the hull, maintenance, or repair; (ii) The actual process of storage, maintenance, or | |
14 | repair of the boat or vessel; or (iii) Storage for the purpose of selling the boat or vessel. | |
15 | (47) Jewelry display product. From the sale and from the storage, use, or other | |
16 | consumption in this state of tangible personal property used to display any jewelry product; | |
17 | provided that title to the jewelry display product is transferred by the jewelry manufacturer or seller | |
18 | and that the jewelry display product is shipped out of state for use solely outside the state and is not | |
19 | returned to the jewelry manufacturer or seller. | |
20 | (48) Boats or vessels generally. Notwithstanding the provisions of this chapter, the tax | |
21 | imposed by §§ 44-18-20 and 44-18-18 shall not apply with respect to the sale and to the storage, | |
22 | use, or other consumption in this state of any new or used boat. The exemption provided for in this | |
23 | subdivision does not apply after October 1, 1993, unless prior to October 1, 1993, the federal ten | |
24 | percent (10%) surcharge on luxury boats is repealed. | |
25 | (49) Banks and regulated investment companies interstate toll-free calls. Notwithstanding | |
26 | the provisions of this chapter, the tax imposed by this chapter does not apply to the furnishing of | |
27 | interstate and international, toll-free terminating telecommunication service that is used directly | |
28 | and exclusively by or for the benefit of an eligible company as defined in this subdivision; provided | |
29 | that an eligible company employs on average during the calendar year no less than five hundred | |
30 | (500) "full-time equivalent employees" as that term is defined in § 42-64.5-2. For purposes of this | |
31 | section, an "eligible company" means a "regulated investment company" as that term is defined in | |
32 | the Internal Revenue Code of 1986, 26 U.S.C. § 851, or a corporation to the extent the service is | |
33 | provided, directly or indirectly, to or on behalf of a regulated investment company, an employee | |
34 | benefit plan, a retirement plan or a pension plan, or a state-chartered bank. | |
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1 | (50) Mobile and manufactured homes generally. From the sale and from the storage, use, | |
2 | or other consumption in this state of mobile and/or manufactured homes as defined and subject to | |
3 | taxation pursuant to the provisions of chapter 44 of title 31. | |
4 | (51) Manufacturing business reconstruction materials. | |
5 | (i) From the sale and from the storage, use, or other consumption in this state of lumber, | |
6 | hardware, and other building materials used in the reconstruction of a manufacturing business | |
7 | facility that suffers a disaster, as defined in this subdivision, in this state. "Disaster" means any | |
8 | occurrence, natural or otherwise, that results in the destruction of sixty percent (60%) or more of | |
9 | an operating manufacturing business facility within this state. "Disaster" does not include any | |
10 | damage resulting from the willful act of the owner of the manufacturing business facility. | |
11 | (ii) Manufacturing business facility includes, but is not limited to, the structures housing | |
12 | the production and administrative facilities. | |
13 | (iii) In the event a manufacturer has more than one manufacturing site in this state, the sixty | |
14 | percent (60%) provision applies to the damages suffered at that one site. | |
15 | (iv) To the extent that the costs of the reconstruction materials are reimbursed by insurance, | |
16 | this exemption does not apply. | |
17 | (52) Tangible personal property and supplies used in the processing or preparation of | |
18 | floral products and floral arrangements. From the sale, storage, use, or other consumption in this | |
19 | state of tangible personal property or supplies purchased by florists, garden centers, or other like | |
20 | producers or vendors of flowers, plants, floral products, and natural and artificial floral | |
21 | arrangements that are ultimately sold with flowers, plants, floral products, and natural and artificial | |
22 | floral arrangements or are otherwise used in the decoration, fabrication, creation, processing, or | |
23 | preparation of flowers, plants, floral products, or natural and artificial floral arrangements, | |
24 | including descriptive labels, stickers, and cards affixed to the flower, plant, floral product, or | |
25 | arrangement, artificial flowers, spray materials, floral paint and tint, plant shine, flower food, | |
26 | insecticide, and fertilizers. | |
27 | (53) Horse food products. From the sale and from the storage, use, or other consumption | |
28 | in this state of horse food products purchased by a person engaged in the business of the boarding | |
29 | of horses. | |
30 | (54) Non-motorized recreational vehicles sold to nonresidents. | |
31 | (i) From the sale, subsequent to June 30, 2003, of a non-motorized recreational vehicle to | |
32 | a bona fide nonresident of this state who does not register the non-motorized recreational vehicle | |
33 | in this state, whether the sale or delivery of the non-motorized recreational vehicle is made in this | |
34 | state or at the place of residence of the nonresident; provided that a non-motorized recreational | |
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1 | vehicle sold to a bona fide nonresident whose state of residence does not allow a like exemption to | |
2 | its nonresidents is not exempt from the tax imposed under § 44-18-20; provided, further, that in | |
3 | that event the bona fide nonresident pays a tax to Rhode Island on the sale at a rate equal to the rate | |
4 | that would be imposed in his or her state of residence not to exceed the rate that would have been | |
5 | imposed under § 44-18-20. Notwithstanding any other provisions of law, a licensed, non-motorized | |
6 | recreational vehicle dealer shall add and collect the tax required under this subdivision and remit | |
7 | the tax to the tax administrator under the provisions of chapters 18 and 19 of this title. Provided, | |
8 | that when a Rhode Island licensed, non-motorized recreational vehicle dealer is required to add and | |
9 | collect the sales and use tax on the sale of a non-motorized recreational vehicle to a bona fide | |
10 | nonresident as provided in this section, the dealer in computing the tax takes into consideration the | |
11 | law of the state of the nonresident as it relates to the trade-in of motor vehicles. | |
12 | (ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may | |
13 | require any licensed, non-motorized recreational vehicle dealer to keep records of sales to bona fide | |
14 | nonresidents as the tax administrator deems reasonably necessary to substantiate the exemption | |
15 | provided in this subdivision, including the affidavit of a licensed, non-motorized recreational | |
16 | vehicle dealer that the purchaser of the non-motorized recreational vehicle was the holder of, and | |
17 | had in his or her possession a valid out-of-state non-motorized recreational vehicle registration or | |
18 | a valid out-of-state driver's license. | |
19 | (iii) Any nonresident who registers a non-motorized recreational vehicle in this state within | |
20 | ninety (90) days of the date of its sale to him or her is deemed to have purchased the non-motorized | |
21 | recreational vehicle for use, storage, or other consumption in this state, and is subject to, and liable | |
22 | for, the use tax imposed under the provisions of § 44-18-20. | |
23 | (iv) "Non-motorized recreational vehicle" means any portable dwelling designed and | |
24 | constructed to be used as a temporary dwelling for travel, camping, recreational, and vacation use | |
25 | that is eligible to be registered for highway use, including, but not limited to, "pick-up coaches" or | |
26 | "pick-up campers," "travel trailers," and "tent trailers" as those terms are defined in chapter 1 of | |
27 | title 31. | |
28 | (55) Sprinkler and fire alarm systems in existing buildings. From the sale in this state of | |
29 | sprinkler and fire alarm systems; emergency lighting and alarm systems; and the materials | |
30 | necessary and attendant to the installation of those systems that are required in buildings and | |
31 | occupancies existing therein in July 2003 in order to comply with any additional requirements for | |
32 | such buildings arising directly from the enactment of the Comprehensive Fire Safety Act of 2003 | |
33 | and that are not required by any other provision of law or ordinance or regulation adopted pursuant | |
34 | to that act. The exemption provided in this subdivision shall expire on December 31, 2008. | |
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1 | (56) Aircraft. Notwithstanding the provisions of this chapter, the tax imposed by §§ 44-18- | |
2 | 18 and 44-18-20 shall not apply with respect to the sale and to the storage, use, or other consumption | |
3 | in this state of any new or used aircraft or aircraft parts. | |
4 | (57) Renewable energy products. Notwithstanding any other provisions of Rhode Island | |
5 | general laws, the following products shall also be exempt from sales tax: solar photovoltaic | |
6 | modules or panels, or any module or panel that generates electricity from light; solar thermal | |
7 | collectors, including, but not limited to, those manufactured with flat glass plates, extruded plastic, | |
8 | sheet metal, and/or evacuated tubes; geothermal heat pumps, including both water-to-water and | |
9 | water-to-air type pumps; wind turbines; towers used to mount wind turbines if specified by or sold | |
10 | by a wind turbine manufacturer; DC to AC inverters that interconnect with utility power lines; and | |
11 | manufactured mounting racks and ballast pans for solar collector, module, or panel installation. Not | |
12 | to include materials that could be fabricated into such racks; monitoring and control equipment, if | |
13 | specified or supplied by a manufacturer of solar thermal, solar photovoltaic, geothermal, or wind | |
14 | energy systems or if required by law or regulation for such systems but not to include pumps, fans | |
15 | or plumbing or electrical fixtures unless shipped from the manufacturer affixed to, or an integral | |
16 | part of, another item specified on this list; and solar storage tanks that are part of a solar domestic | |
17 | hot water system or a solar space heating system. If the tank comes with an external heat exchanger | |
18 | it shall also be tax exempt, but a standard hot water tank is not exempt from state sales tax. | |
19 | (58) Returned property. The amount charged for property returned by customers upon | |
20 | rescission of the contract of sale when the entire amount exclusive of handling charges paid for the | |
21 | property is refunded in either cash or credit, and where the property is returned within one hundred | |
22 | twenty (120) days from the date of delivery. | |
23 | (59) Dietary supplements. From the sale and from the storage, use, or other consumption | |
24 | of dietary supplements as defined in § 44-18-7.1(l)(v), sold on prescriptions. | |
25 | (60) Blood. From the sale and from the storage, use, or other consumption of human blood. | |
26 | (61) Agricultural products for human consumption. From the sale and from the storage, | |
27 | use, or other consumption of livestock and poultry of the kinds of products that ordinarily constitute | |
28 | food for human consumption and of livestock of the kind the products of which ordinarily constitute | |
29 | fibers for human use. | |
30 | (62) Diesel emission control technology. From the sale and use of diesel retrofit technology | |
31 | that is required by § 31-47.3-4. | |
32 | (63) Feed for certain animals used in commercial farming. From the sale of feed for | |
33 | animals as described in subsection (61) of this section. | |
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1 | (64) Alcoholic beverages. From the sale and storage, use, or other consumption in this state | |
2 | by a Class A licensee of alcoholic beverages, as defined in § 44-18-7.1, excluding beer and malt | |
3 | beverages; provided, further, notwithstanding § 6-13-1 or any other general or public law to the | |
4 | contrary, alcoholic beverages, as defined in § 44-18-7.1, shall not be subject to minimum markup. | |
5 | (654) Seeds and plants used to grow food and food ingredients. From the sale, storage, use, | |
6 | or other consumption in this state of seeds and plants used to grow food and food ingredients as | |
7 | defined in § 44-18-7.1(l)(i). "Seeds and plants used to grow food and food ingredients" shall not | |
8 | include marijuana seeds or plants. | |
9 | (665) Feminine hygiene products. From the sale and from the storage, use, or other | |
10 | consumption of tampons, panty liners, menstrual cups, sanitary napkins, and other similar products | |
11 | the principal use of which is feminine hygiene in connection with the menstrual cycle. | |
12 | 44-18-36.1. Hotel tax. | |
13 | (a) There is imposed a hotel tax of five percent (5%) six percent (6%) upon the total | |
14 | consideration charged for occupancy of any space furnished by any hotel, travel packages, or room | |
15 | reseller or reseller as defined in § 44-18-7.3(b) in this state. A house, condominium, or other | |
16 | resident dwelling shall be exempt from the five percent (5%) six percent (6%) hotel tax under this | |
17 | subsection if the house, condominium, or other resident dwelling is rented in its entirety. The hotel | |
18 | tax is in addition to any sales tax imposed. This hotel tax is administered and collected by the | |
19 | division of taxation and unless provided to the contrary in this chapter, all the administration, | |
20 | collection, and other provisions of chapters 18 and 19 of this title apply. Nothing in this chapter | |
21 | shall be construed to limit the powers of the convention authority of the city of Providence | |
22 | established pursuant to the provisions of chapter 84 of the public laws of 1980, except that | |
23 | distribution of hotel tax receipts shall be made pursuant to chapter 63.1 of title 42 rather than chapter | |
24 | 84 of the public laws of 1980. | |
25 | (b) There is hereby levied and imposed, upon the total consideration charged for occupancy | |
26 | of any space furnished by any hotel in this state, in addition to all other taxes and fees now imposed | |
27 | by law, a local hotel tax at a rate of one percent (1%). The local hotel tax shall be administered and | |
28 | collected in accordance with subsection (a). | |
29 | (c) All sums received by the division of taxation from the local hotel tax, penalties or | |
30 | forfeitures, interest, costs of suit and fines shall be distributed at least quarterly, credited and paid | |
31 | by the state treasurer to the city or town where the space for occupancy that is furnished by the | |
32 | hotel is located. Unless provided to the contrary in this chapter, all of the administration, collection, | |
33 | and other provisions of chapters 18 and 19 of this title shall apply. | |
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1 | (d) Notwithstanding the provisions of subsection (a) of this section, the city of Newport | |
2 | shall have the authority to collect from hotels located in the city of Newport the tax imposed by | |
3 | subsection (a) of this section. | |
4 | (1) Within ten (10) days of collection of the tax, the city of Newport shall distribute the tax | |
5 | as provided in § 42-63.1-3. No later than the first day of March and the first day of September in | |
6 | each year in which the tax is collected, the city of Newport shall submit to the division of taxation | |
7 | a report of the tax collected and distributed during the six (6) month period ending thirty (30) days | |
8 | prior to the reporting date. | |
9 | (2) The city of Newport shall have the same authority as the division of taxation to recover | |
10 | delinquent hotel taxes pursuant to chapter 44-19, and the amount of any hotel tax, penalty and | |
11 | interest imposed by the city of Newport until collected constitutes a lien on the real property of the | |
12 | taxpayer. | |
13 | SECTION 7. SECTION 1 and SECTION 4 shall be effective October 1, 2020. SECTION | |
14 | 5 shall be effective January 1, 2021. All other sections of this article shall take effect July 1, 2020. | |
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