2023 -- H 5805

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LC001775

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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

     Introduced By: Representatives J. Brien, Corvese, Baginski, Chippendale, Serpa,
Cardillo, Phillips, and Newberry

     Date Introduced: February 22, 2023

     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 19.1

SALES AND USE TAX HOLIDAY

     44-19.1-1. Declaration of necessity.

     In consideration of the fact that other states have had sales tax holidays which have been

successful in stimulating their respective economies, and it is expected that a similar stimulation to

the Rhode Island economy would occur as a result of a sales tax holiday in Rhode Island, such a

sales tax holiday is afforded by this chapter.

     44-19.1-2. Applicability of Definitions.

     Except where the context otherwise requires, the terms used in this chapter shall have the

same meaning as in chapters 13, 18 and 19 of title 44.

     44-19.1-3. Sales Tax Holiday defined.

     For the purposes of this chapter, the term “sales tax holiday” means the second Saturday

and Sunday of July every year.

     44-19.1-4. Tax Holiday Sales.

     Notwithstanding any other provision of the general laws to the contrary, during a sales tax

holiday, a sales and use tax shall not be imposed upon any non-business retail sale made by a

retailer located in Rhode Island, except for the following:

     (a) The sale of telecommunication services;

     (b) The sale of cigarettes or other tobacco products taxed under chapter 20 of title 44;

     (c) The sale of meals and/or beverages as described in § 44-18-18.1;

     (d) The sale of motor vehicles;

     (e) The rental of living quarters;

     (f) The furnishing of service for transmission of messages by telegraph, cable, or radio and

the furnishing of community antenna television, subscription television, and cable television

services; and

     (g) The sale of a single item whose price is in excess of two thousand five hundred dollars

($2,500).

     44-19.1-5. Retailers collection requirements.

     Notwithstanding any other provision of the general laws to the contrary, during a sales tax

holiday a retailer in Rhode Island shall not add to the sales price or collect from any non-business

purchaser a sales or use tax upon any retail sale described in § 44-19.1-4. Although the tax

administrator shall not require any retailer in Rhode Island to collect and pay sales and use tax upon

such retail sales made during the sales tax holiday, any sales or use tax erroneously or improperly

collected during a sales tax holiday shall be remitted to the division of taxation.

     44-19.1-6. Retailers reporting requirements.

     Reporting requirements imposed upon retailers, by law or by regulation, including, but not

limited to, the requirements for filing returns required by chapters 18 and 19 of title 44, shall remain

in effect for sales during the sales tax holiday, unless changed by the tax administrator in

instructions, forms, rules or regulations as provided for in § 44-19.1–7.

     44-19.1-7. Rules and Regulations - Forms.

     The tax administrator may adopt rules and regulations to carry into effect the provisions of

this chapter. The tax administrator may prescribe and furnish any forms and instructions necessary

or proper for the administration 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 create a sales and use tax holiday for the second Saturday and Sunday in

July, annually.

     This act would take effect upon passage.

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LC001775

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