2020 -- H 7500

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LC004215

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2020

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A N   A C T

RELATING TO TAXATION - STATE TAX OFFICIALS - SALES AND USE TAXES --

ENFORCEMENT AND COLLECTION

     

     Introduced By: Representatives Cortvriend, Shekarchi, Amore, Carson, and Nardone

     Date Introduced: February 07, 2020

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 44-1-7 of the General Laws in Chapter 44-1 entitled "State Tax

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Officials" is hereby amended to read as follows:

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     44-1-7. Interest on delinquent payments.

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     (a) Whenever the full amount of any state tax or any portion or deficiency, as finally

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determined by the tax administrator, has not been paid on the date when it is due and payable,

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whether the time has been extended or not, there shall be added as part of the tax or portion or

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deficiency interest at the rate as determined in accordance with subsection (b) of this section,

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notwithstanding any general or specific statute to the contrary.

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     (b) Each January 1 the tax administrator shall compute the rate of interest to be in effect

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for that calendar year by adding two percent (2%) to the prime rate, which was in effect on

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October 1 of the preceding year. In no event shall the rate of interest exceed twenty-one percent

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

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     (c) "Prime rate" as used in subsection (b) of this section means the predominant prime

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rate quoted by commercial banks to large businesses as determined by the board of governors of

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the Federal Reserve System.

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     (d) Payment of any tax to the state or any amount of tax required to be collected and paid

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to the state shall be paid no later than midnight of the date when such tax is due and payable.

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     (e) Upon request to the tax administrator, payment of any tax referred to in subsection (d)

 

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of this section, may be extended for a period of twenty-four (24) hours.

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     SECTION 2. Section 44-19-20 of the General Laws in Chapter 44-19 entitled "Sales and

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Use Taxes - Enforcement and Collection" is hereby amended to read as follows:

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     44-19-20. Interest and penalties on delinquent payments.

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     (a) Any person who fails to pay any tax to the state or any amount of tax required to be

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collected and paid to the state, except amounts of determinations made by the tax administrator

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under §§ 44-19-11 -- 44-19-14 within the required time shall pay a penalty of ten percent (10%)

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of the tax or amount of the tax, in addition to the tax or amount of the tax, plus interest at the

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annual rate provided by § 44-1-7 from the date on which the tax or amount of the tax required to

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be collected became due and payable to the state until date of payment.

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     (b) Payment of any tax to the state or any amount of tax required to be collected and paid

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to the state shall be paid no later than midnight of the date when such tax is due and payable.

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     (c) Upon request to the tax administrator, payment of any tax referred to in subsection (b)

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of this section, may be extended for a period of twenty-four (24) hours.

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     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION - STATE TAX OFFICIALS - SALES AND USE TAXES --

ENFORCEMENT AND COLLECTION

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     This act would allow any tax payments to be paid by midnight of the date the tax is due.

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This act would also provide for a twenty-four (24) hour extension of time to pay the tax.

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     This act would take effect upon passage.

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