2003 -- S 0192
RELATING TO TAXATION - SALES TAX
Introduced By: Senators Badeau, and Cote
Date Introduced: January 30, 2003
It is enacted by the General Assembly as follows:
SECTION 1. Section 44-18-30B of the General Laws in Chapter 44-18 entitled "Sales
and Use Taxes - Liability and Computation" is hereby amended to read as follows:
44-18-30.B. Exemption from sales tax for sales by writers, composers, artists --
Findings. -- (a) The general assembly makes the following findings of facts:
(1) The downtown area of the city of Providence has been characterized by blighted
areas, and dilapidated and abandoned structures;
(2) As a result, the downtown area has been designated an economic development zone
in order to stop the deterioration and stimulate economic activity;
(3) The capitol center area of the city of Providence has become an attractive location,
especially with the construction of the Providence Place Mall;
(4) In order to promote, revitalize and redevelop the "Old Downtown" area of the city of
Providence it is necessary to provide tax exemptions to this area as it has been designated as an
economic development zone;
(5) In order to promote, revitalize, and redevelop the "Downtown or other industrial or
manufacturing buildings" located in the City of Pawtucket, it is necessary to provide tax
exemptions to this area as it has been designated as an economic development zone;
(6) The development of an active artistic community, including "artists in residence", in
this area would promote economic development, revitalization, tourism, employment
opportunities, and encourage business development by providing alternative commercial
enterprises while in Providence creating a link between the Old Downtown and the Capital Center
(7) There is a separate artistic community in the town of Westerly which is important to
preserve, promote, and revitalize, and which is distinct from that in the city of Providence.
(8) There is a separate artistic community in the city of Woonsocket which is important
to promote and revitalize and which is distinct from that in the cities of Providence and Pawtucket
and the town of Westerly.
(b) (1) This section only applies to sales by writers, composers and artists residing in and
conducting a business within a section of the defined economic development zone in the cities of
Providence or Pawtucket, or the
defined economic development zone in the town of Westerly
the defined economic zone in the city of Woonsocket. For the purposes of this section, a "work"
means an original and creative work, whether written, composed or executed for "one-of-a-kind
limited" production and which falls into one of the following categories:
(i) A book or other writing;
(ii) A play or the performance of said play;
(iii) A musical composition or the performance of said composition;
(iv) A painting or other like picture;
(v) A sculpture;
(vi) Traditional and fine crafts;
(vii) The creation of a film or the acting within the film;
(viii) The creation of a dance or the performance of the dance.
(2) For the purposes of this section, a "work" includes any product generated as a result
of any of the above categories.
(3) For the purposes of this section, a "work" does not apply to any piece or performance
created or executed for industry oriented or related production.
(c) (1) This section applies to sales by any individual:
(i) Who is a resident of and has a principal place of business situated in the section of the
economic development zone designated as the arts and entertainment district in the downtown
area of the city of Providence or in the city of Pawtucket, or the defined economic development
zone in the town of Westerly
or the defined economic zone in the city of Woonsocket. For the
purposes of this section, the Providence arts and entertainment district in Providence is defined as
the area bounded by Pine Street to the southeast, Dorrance Street to the northeast, Sabin Street to
the northwest and Empire Street to the southwest. The named streets are included in the
Providence district; and in Pawtucket is defined as the area beginning at the point of intersection
of Dexter Street and the Central Falls line, then east along the Central Falls line to the Blackstone
River, then north along the city boundary on the Blackstone River to the Cumberland line, then
west along the Pawtucket city boundary line to I-95, then south along I-95 to Pine Street, then
north on Pine Street to AMTRAK Right of Way, then northwest along the AMTRAK Right of
Way to Dexter Street, then north on Dexter Street to the Central Falls line. The named streets are
included in the district. The Westerly arts and entertainment district is defined as assessor's plat
56, lots 1 through 24, lot 48, lots 50 through 62, and lots 71 through 82, and assessors plat 66, lots
22 through 26, and lots 29 through
. the Woonsocket arts and entertainment district is defined
as the area beginning at a point of land on the southwest bank of the Blackstone River abutting
the bridge for the Providence & Worcester Railroad and proceeding northerly to a point at the
intersection of Worrall Street, Clinton Street and Harry S. Truman Drive, then proceeding
northwesterly along Worrall Street to its intersection with Social Street, then turning westerly on
Social Street proceeding to its intersection with Main Street, Blackstone Street and North Main
Street, then turning northwesterly and proceeding along Blackstone Street to its intersection with
River Street, then turning northerly and proceeding along River Street to its intersection with the
north/east bank of Blackstone River, then following the riverbank southerly to the bridge at
Bernon Street and turning easterly crossing the Blackstone River via Bernon Street and
proceeding to its intersection with Front Street, then turning northeasterly on Front Street and
proceeding to its intersection with Hamlet Avenue, and to include the former courthouse on the
southerly side of Front Street at its intersection with Hamlet Avenue, then turning easterly on
Hamlet Avenue and proceeding to its intersection with Manville Road, then turning southeasterly
on Manville Road and proceeding to its intersection with Davison Avenue, then turning
northeasterly on Davison Avenue and proceeding to a point on the south/west bank of the
Blackstone River, then turning northerly, following the southerly riverbank to the point of
beginning. The abovementioned streets are included in the district.
(ii) Who is determined by the tax administrator, after consideration of any evidence he or
she deems necessary or which is submitted to him or her by the individual, to have written,
composed, or executed, either solely or jointly, a work or works which would fall into one of the
categories listed in subsection (b)(1).
(2) This section also applies to sales by any other gallery located in the arts and
entertainment district described in subsection (c)(1)(i) as well as any other arts and entertainment
district designated by the general assembly.
(3) The tax administrator shall not make a determination unless:
(i) The individual(s) concerned duly make(s) an application to the tax administrator for
the sales tax exemption which applies to the works defined in this section; and
(ii) The individual has complied and continues to comply with any and all requests made
by the tax administrator.
(d) Any individual to whom this section applies and who makes an application to the tax
administrator is entitled to a sales tax exemption for the sale of a work or works sold from the
individual's business located in the economic development zone which would, apart from this
section, be subject to the tax rate imposed by the state of Rhode Island.
(e) When an individual makes a request for the exemption, the tax administrator is
entitled to all books, documents, or other evidence relating to the publication, production or
creation of the works that may be deemed necessary by the tax administrator for the purposes of
the exemption. The time period in which to provide this information is in the sole discretion of
the tax administrator and specified in the notice.
(f) In addition to the information required in subsection (e), the tax administrator may
require the individual(s) to submit an annual certified accounting of the numbers of works sold,
the type of work sold, and the date of the sale. Failure to file this report may, in the sole discretion
of the tax administrator, terminate the individual's eligibility for the exemption.
(g) Any person storing, using, or otherwise consuming in this state any work or works
which is deemed to be exempt from the sales tax pursuant to this section is not liable for the use
tax on the work or works.
(h) Notwithstanding the provisions of this section, any individual to whom this section
may apply shall comply with all the administration, collection, and other provisions of chapters
18 and 19 of this title.
SECTION 2. This act shall take effect upon passage.