2023 -- H 5239

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LC000429

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

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

COMPUTATION

     Introduced By: Representatives Solomon, Finkelman, Cardillo, Lima, Corvese, Noret,
Casimiro, Giraldo, and Casey

     Date Introduced: January 25, 2023

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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

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

     44-18-18.2. Annual Sales Tax Holiday.

     (a) Notwithstanding any general or public law to the contrary, for the days of August 12,

2023 and August 13, 2023, sales tax shall not be imposed upon nonbusiness sales at retail of

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

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

meals or a single item whose price exceeds two thousand five hundred dollars ($2,500).

     (b) Notwithstanding any general or public law to the contrary, for the days of August 12,

2023 and August 13, 2023, a vendor shall not add to the sales price, or collect from a nonbusiness

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

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

at retail of tangible personal property purchased on August 12, 2023 and August 13, 2023. An

excise erroneously or improperly collected during the days of August 12, 2023 and August 13,

2023, shall be remitted to the department of revenue.

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

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

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

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

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

the general laws, shall remain in effect for sales for the days of August 12, 2023 and August 13,

2023.

     (d) On or before December 31, 2023, the director of the department of revenue shall certify

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

and corporate income taxes and other sources pursuant to this section. The director shall file a report

with the house and senate finance committees detailing the distribution of revenues which would

have been deposited in each fund without this section.

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

necessary for the implementation of this section.

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

section are restricted to those transactions occurring on August 12, 2023 and August 13, 2023.

Transfer of possession of or payment in full for the property shall occur on one of those days, and

prior sales or layaway sales shall be ineligible.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

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

COMPUTATION

***

     This act would create a sales tax holiday for the days of August 12, 2023 and August 13,

2023, and no sales taxes would be collected on nonbusiness sales of tangible personal property,

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

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

dollars ($2,500).

     This act would take effect upon passage.

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