2021 -- H 6267

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LC002415

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021

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A N   A C T

RELATING TO TAXATION

     Introduced By: Representatives Costantino, McEntee, Caldwell, Corvese, Hawkins, and
Phillips

     Date Introduced: April 28, 2021

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 44 of the General Laws entitled "TAXATION" is hereby amended by

adding thereto the following chapter:

CHAPTER 6.6

BUDGET FOR FRIENDLY TAX RELIEF ACT OF 2021

     44-6.6-1. Short title.

     This chapter shall be known and may be cited as the "Budget for Friendly Tax Relief Act

of 2021".

     44-6.6-2. Definitions.

     As used in this chapter, the following terms have the meaning ascribed to them in this

section, except when the context clearly indicates a different meaning:

     (1) "Income tax" means any tax that the state of Rhode Island imposes on income generated

by businesses and individuals within the state.

     (2) "Sales tax" means a tax that is imposed upon sales at retail in this state, including

charges for rentals of living quarters in hotels as defined in § 42-63.1-2, rooming houses, or tourist

camps, at the rate of seven percent (7%) of the gross receipts of the retailer from the sales or rental

charges; provided, that the tax imposed on charges for the rentals applies only to the first period of

not exceeding thirty (30) consecutive calendar days of each rental. The tax is paid to the tax

administrator by the retailer at the time and in the manner provided. Excluded from this tax are

those living quarters in hotels, rooming houses, or tourist camps for which the occupant has a

written lease for the living quarters which lease covers a rental period of twelve (12) months or

more.

     (3) "Taxable period" means any period for which a tax return is required by law to be filed

with the tax administrator.

     (4) "Taxpayer" means any person, corporation, or other entity subject to any tax imposed

by any law of the state of Rhode Island and payable to the state of Rhode Island and collected by

the tax administrator.

     44-6.6-3. Interest under tax amnesty.

     (a) Notwithstanding any provision of law to the contrary, interest and penalties on any

income tax for any taxes due in the form of quarterly payments or estimated taxes shall be waived

through six months from the date of passage of this act or for one month after the expiration of the

emergency declarations by the governor pursuant to executive order 20-02 of March 9, 2020.

     (b) Notwithstanding any provision of law to the contrary, interest and penalties on any sales

tax imposed pursuant to chapter 18 of title 44 for any taxes due from sales beginning the date of

passage of this act for six months or for one month after the expiration of the emergency

declarations by the governor pursuant to executive order 20-02 of March 9, 2020.

     44-6.6-4. Implementation.

     Notwithstanding any provision of law to the contrary, the tax administrator is hereby

authorized to provide for the timely implementation of this chapter, including, but not limited to,

procurement of printing and other services.

     44-6.6-5. Disposition of monies.

     (a) Except as provided in subsection (b) of this section, all monies collected pursuant to

any tax imposed by the state of Rhode Island under the provisions of this chapter shall be accounted

for separately and paid into the general fund.

     (b) Monies collected for the establishment of the TDI reserve fund (§ 28-39-7), the

employment security fund (§ 28-42-18), the employment security interest fund (§ 28-42-75), the

job development fund (§ 28-42-83), and the employment security reemployment fund (§ 28-42-87)

shall be deposited in the respective funds.

     44-6.6-6. Analysis of amnesty program by tax administrator.

     The tax administrator shall provide an analysis of the amnesty program to the chairpersons

of the house finance committee and senate finance committee, with copies to the members of the

revenue estimating conference, by January 1, 2022. The report shall include an analysis of revenues

received by tax source, distinguishing between the tax collected and interest collected for each

source. In addition, the report shall further identify the amounts that are new revenues from those

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already included in the general revenue receivable taxes, defined under generally accepted

accounting principles and the state's audited financial statements.

     44-6.6-7. Rules and regulations.

     The tax administrator may promulgate such rules and regulations as are necessary to

implement the provisions of this chapter.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION

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     This act would provide for an interest and penalty free period for the payment of sales and

income taxes due to the state for the calendar year 2021 and continuing through March of 2021 for

income taxes and August 2021 for sales taxes.

     This act would take effect upon passage.

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