Chapter 498
2004 -- H 8418
Enacted 07/07/04
A N A C T
RELATING
TO SALES AND USE TAXES --LIABILITY AND COMPUTATION
Introduced
By: Representatives Landroche, and Kilmartin
Date
Introduced: April 20, 2004
It
is enacted by the General Assembly as follows:
SECTION
1. Section 44-18-18.1 of the General Laws in Chapter 44-18 entitled "Sales
and
Use Taxes - Liability and Computation" is hereby amended to read as
follows:
44-18-18.1.
Local meals and beverage tax. -- (a) There is hereby levied and
imposed,
upon
every purchaser of a meal and/or beverage, in addition to all other taxes and
fees now
imposed
by law, a local sales or use tax upon each and every meal and/or beverage sold
within
the
state of Rhode Island in or from an eating and/or drinking establishment,
whether prepared in
the
eating and/or drinking establishment or not and whether consumed at the
premises or not, at a
rate
of one percent of the gross receipts. The tax shall be paid to the tax
administrator by the
retailer
at the time and in the manner provided.
(b) All sums received by the division of taxation under this section as taxes,
penalties or
forfeitures,
interest, costs of suit and fines shall be distributed at least quarterly,
credited and paid
by
the state treasurer to the city or town where the meals and beverages are
delivered.
(c) When used in this section, the following words have the following meanings:
(1) "Beverage" means all nonalcoholic beverages, as well as alcoholic
beverages, beer,
lager
beer, ale, porter, wine, similar fermented malt or vinous liquor.
(2) "Meal" means any prepared food or beverage offered or held out
for sale by an eating
and/or
drinking establishment for the purpose of being consumed by any person to
satisfy the
appetite
and which is ready for immediate consumption. All such food and beverage,
unless
otherwise
specifically exempted or excluded herein shall be included, whether intended to
be
consumed
on the seller's premises or elsewhere, whether designated as breakfast, lunch,
snack,
dinner,
supper or by some other name, and without regard to the manner, time or place
of service.
(3) "Eating and/or drinking establishments" mean and include
restaurants, bars, taverns,
lounges,
cafeterias, lunch counters, drive-ins, roadside ice cream and refreshment
stands, fish and
chip
places, fried chicken places, pizzerias, food and drink concessions, vending
machines, or
similar
facilities in amusement parks, bowling alleys, clubs, caterers, drive-in
theatres, industrial
plants,
race tracks, shore resorts or other locations, lunch carts, mobile canteens and
other similar
vehicles,
and other like places of business which furnish or provide facilities for
immediate
consumption
of food at tables, chairs or counters or from trays, plates, cups or other
tableware or
in
parking facilities provided primarily for the use of patrons in consuming
products purchased at
the
location.
Ordinarily, eating establishments do not mean and include food stores and
supermarkets.
Eating
establishments do not mean “vending machines,” a self-contained automatic
device
that dispenses for sale foods, beverages, or confection products.
Retailers selling prepared foods in bulk either in customer-furnished
containers or in the
seller's
containers, for example "Soup and Sauce" establishments, are deemed
to be selling
prepared
foods ordinarily for immediate consumption and as such are considered eating
establishments.
This local sales or use tax shall be administered and collected by the division
of taxation
and
unless provided to the contrary in this chapter, all of the administration,
collection, and other
provisions
of chapters 18 and 19 of this article apply.
SECTION
2. This act shall take effect upon passage.
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LC03172
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