ARTICLE 16 SUBSTITUTE A AS
AMENDED
RELATING TO
REVENUES
SECTION 1. Sections 31-36-7 and 31-36-20 of the General Laws
in Chapter 31-36
entitled "Motor Fuel Tax" are hereby amended to read
as follows:
31-36-7.
Monthly report of distributors -- Payment of tax. -- (a) State requirements. -
Every distributor shall, on or before the twentieth
(20th) day of each month, render a report to the
tax administrator, upon forms to be obtained from the tax
administrator, of the amount (number
of gallons) of fuels purchased, sold, or used by the
distributor within this state and the amount of
fuels sold by the distributor without this state from fuels
within this state during the preceding
calendar month, and, if required by the tax administrator as
to purchases, the name or names of
the person or persons from whom purchased and the date
and amount of each purchase, and as to
sales, the name or names of the person or persons to whom
sold and the amount of each sale, and
shall pay at the same time to the administrator tax at the
rate of thirty cents ($.30) thirty-two cents
($0.32) per gallon on all taxable gallons of fuel sold or
used in this state.
(b) Federal
requirements. - In the event the federal government requires a certain portion
of the gasoline tax to be dedicated for highway
improvements, then the state controller is directed
to establish a restricted receipt account and deposit
that portion of gasoline tax receipts which
brings the state into federal compliance.
31-36-20. Disposition of proceeds. -- (a) Notwithstanding any other provision of law to
the contrary, all moneys paid into the general treasury
under the provisions of this chapter or
chapter 37 of this title, and title 46 shall be applied to and
held in a separate fund and be
deposited in any depositories that may be selected by the
general treasurer to the credit of the
fund, which fund shall be known as the Intermodal Surface
Transportation Fund; provided, that in
fiscal year 2004 for the months of July through April six
and eighty-five hundredth cents
($0.0685) per gallon of the tax imposed and accruing
for the liability under the provisions of §
31-36-7, less refunds and credits, shall be
transferred to the
as provided under § 39-18-21. For the months of May and
June in fiscal year 2004, the allocation
shall be five and five hundredth cents ($0.0505).
Thereafter, until fiscal year 2006, the allocation
shall be six and twenty-five hundredth cents ($0.0625). For
fiscal year 2006 through FY 2008, the
allocation shall be seven and twenty-five hundredth cents
($0.0725); provided, that expenditures
shall include the costs of a market survey of non-transit
users and a management study of the
agency to include the feasibility of moving the Authority
into the Department of Transportation,
both to be conducted under the auspices of the state
budget officer. The state budget officer shall
hire necessary consultants to perform the studies, and
shall direct payment by the Authority. Both
studies shall be transmitted by the Budget Officer to the
2006 session of the General Assembly,
with comments from the Authority. For fiscal year 2009 and
thereafter, the allocation shall be
seven and seventy-five hundredth cents ($0.0775), of
which one-half cent ($0.005) shall be
derived from the one cent ($0.01) per gallon environmental
protection fee pursuant to § 46-12.9-
11. For fiscal years 2010 and thereafter, the
allocation shall be nine and seventy-five hundredth
cents ($0.0975), of which of one-half cent ($0.005) shall
be derived from the one cent ($0.01) per
gallon environmental protection fee pursuant to section
46-12.9-11. One cent ($0.01) per
gallon
shall be transferred to the Elderly/Disabled Transportation
Program of the department of elderly
affairs, and the remaining cents per gallon shall be
available for general revenue as determined by
the following schedule:
(i) For the fiscal year 2000, three and one fourth cents
($0.0325) shall be available for
general revenue.
(ii)
For the fiscal year 2001, one and three-fourth cents ($0.0175) shall be
available for
general revenue.
(iii)
For the fiscal year 2002, one-fourth cent ($0.0025) shall be available for
general
revenue.
(iv) For the fiscal year 2003, two and one-fourth cent
($0.0225) shall be available for
general revenue.
(v)
For the months of July through April in fiscal year 2004, one and four-tenths
cents
($0.014) shall be available for general revenue. For
the months of May through June in fiscal year
2004, three and two-tenths cents ($0.032) shall be
available for general revenue, and thereafter,
until fiscal year 2006, two cents ($0.02) shall be available
for general revenue. For fiscal year
2006 and thereafter through fiscal year 2009
one cent ($0.01) shall be available for general
revenue.
(2)
All deposits and transfers of funds made by the tax administrator under this
section,
including those to the
the general fund, shall be made within twenty-four (24)
hours of receipt or previous deposit of the
funds in question.
(3)
Commencing in fiscal year 2004, the Director of the Rhode Island Department of
Transportation is authorized to remit, on a monthly or
less frequent basis as shall be determined
by the Director of the Rhode Island Department of
Transportation, or his or her designee, or at the
election of the Director of the Rhode Island Department of
Transportation, with the approval of
the Director of the Department of Administration, to an
indenture trustee, administrator, or other
third party fiduciary, in an amount not to exceed two cents
($0.02) per gallon of the gas tax
imposed, in order to satisfy debt service payments on
aggregate bonds issued pursuant to a Joint
Resolution and Enactment Approving the Financing of
Various Department of Transportation
Projects adopted during the 2003 session of the
General Assembly, and approved by the
Governor.
(b)
Notwithstanding any other provision of law to the contrary, all other funds in
the
fund shall be dedicated to the department of
transportation, subject to annual appropriation by the
general assembly. The director of transportation shall submit
to the general assembly, budget
office and office of the governor annually an accounting of
all amounts deposited in and credited
to the fund together with a budget for proposed
expenditures for the succeeding fiscal year in
compliance with §§ 35-3-1 and 35-3-4. On order of the director
of transportation, the state
controller is authorized and directed to draw his or her orders
upon the general treasurer for the
payments of any sum or portion of the sum that may be required
from time to time upon receipt
of properly authenticated vouchers.
(c) At
any time the amount of the fund is insufficient to fund the expenditures of the
department of transportation, not to exceed the amount authorized
by the general assembly, the
general treasurer is authorized, with the approval of the
governor and the director of
administration, in anticipation of the receipts of monies enumerated
in § 31-36-20 to advance
sums to the fund, for the purposes specified in §
31-36-20, any funds of the state not specifically
held for any particular purpose. However, all the advances
made to the fund shall be returned to
the general fund immediately upon the receipt by the fund
of proceeds resulting from the receipt
of monies to the extent of the advances.
SECTION 2. Section 23-17-38.1 of the General Laws in Chapter
23-17 entitled
“Licensing of Health Care
Facilities” is hereby amended to read as follows:
23-17-38.1.
Hospitals – Licensing fee. -- (a) There is imposed a hospital licensing fee at
the rate of three and forty-eight hundredths percent
(3.48%) upon the net patient services revenue
of every hospital for the hospital's first fiscal year
ending on or after January 1, 2006. This
licensing fee shall be administered and collected by the tax
administrator, division of taxation
within the department of administration, and all the
administration, collection and other
provisions of chapters 50 and 51 of title 14 shall apply. Every
hospital shall pay the licensing fee
to the tax administrator on or before July 14, 2008 and
payments shall be made by electronic
transfer of monies to the general treasurer and deposited to
the general fund in accordance with §
44-50-11. Every hospital
shall, on or before June 16, 2008, make a return to the tax administrator
containing the correct computation of net patient services
revenue for the hospital fiscal year
ending September 30, 2006, and the licensing fee due upon
that amount. All returns shall be
signed by the hospital's authorized representative, subject
to the pains and penalties of perjury.
(b)(a)
There is also imposed a hospital licensing fee at the rate of four and
seventy-eight
hundredths percent (4.78%) five and four hundred seventy-three thousandths percent (5.473%)
upon the net patient services revenue of every hospital
for the hospital's first fiscal year ending on
or after January 1, 2007. This licensing fee shall be
administered and collected by the tax
administrator, division of taxation within the department of
administration, and all the
administration, collection and other provisions of chapter 50 and 51
of title 14 shall apply. Every
hospital shall pay the licensing fee to the tax administrator
on or before July 13, 2009 and
payments shall be made by electronic transfer of monies to the
general treasurer and deposited to
the general fund in accordance with § 44-50-11. Every
hospital shall, on or before June 15, 2009,
make a return to the tax administrator containing the
correct computation of net patient services
revenue for the hospital fiscal year ending September 30,
2007, and the licensing fee due upon
that amount. All returns shall be signed by the hospital's
authorized representative, subject to the
pains and penalties of perjury.
(b) There is also
imposed a hospital licensing fee at the rate of five and two hundred
thirty-seven thousandths percent (5.237%) upon the net
patient services revenue of every hospital
for the hospital's first fiscal year ending on or after
January 1, 2008. This licensing fee shall be
administered and collected by the tax administrator, division of
taxation within the department of
administration, and all the administration, collection and other
provisions of chapter 50 and 51 of
title 14 shall apply. Every hospital shall pay the
licensing fee to the tax administrator on or before
July 12, 2010 and payments shall be made by electronic
transfer of monies to the general
treasurer and deposited to the general fund in accordance with
§ 44-50-11. Every hospital shall,
on or before June 14, 2010, make a return to the tax
administrator containing the correct
computation of net patient services revenue for the hospital
fiscal year ending September 30,
2007, and the licensing fee due
upon that amount. All
returns shall be signed by the hospital's
authorized representative, subject to the pains and penalties of
perjury.
(c) For purposes of
this section the following words and phrases have the following
meanings:
(1)
"Hospital" means a person or governmental unit duly licensed in
accordance with
this chapter to establish, maintain, and operate a
hospital, except a hospital whose primary service
and primary bed inventory are psychiatric.
(2) "Gross patient
services revenue" means the gross revenue related to patient care
services.
(3) "Net patient
services revenue" means the charges related to patient care services less
(i) charges
attributable to charity care, (ii) bad debt expenses, and (iii) contractual
allowances.
(d) The tax
administrator shall make and promulgate any rules, regulations, and
procedures not inconsistent with state law and fiscal procedures
that he or she deems necessary
for the proper administration of this section and to
carry out the provisions, policy and purposes
of this section.
(e) The licensing fee
imposed by this section shall be in addition to the inspection fee
imposed by § 23-17-38 and to any licensing fees previously
imposed in accordance with § 23-17-
38.1.
SECTION 3. Chapter 44-50 of the General Laws entitled
"Health Care Provider
Assessment Act" is
hereby repealed in its entirety.
CHAPTER
44-50
Health
Care Provider Assessment Act
44-50-1.
Short title. -- This chapter shall
be known as "The Health Care Provider
Assessment Act".
44-50-2.
Definitions. -- Except where the
context otherwise requires, the following
words and phrases as used in this chapter shall have the
following meaning:
(1)
"Administrator" means the tax administrator.
(2)
"Assessment" means the assessment imposed upon gross patient revenue
pursuant to
this chapter.
(3) "Gross
patient revenue" means the gross amount received on a cash basis by the
provider from the provider's provision of twenty-four (24)
hour residential services for
individuals with developmental disabilities.
(4)
"Person" means any individual, corporation, company, association, partnership, joint
stock association, and the legal successor thereof.
(5)
"Provider" means a licensed facility or operator, including a
government facility or
operator, subject to an assessment under this chapter.
(6)
"Residential services" means intermediate care facility services for
the mentally
retarded and similar twenty-four (24) hour residential
services funded under a waiver of section
1915(c) of the federal Medicaid statute, 42 U.S.C.
section 1396n(c), and furnished by providers
licensed in accordance with chapter 24 of title 40.1 to
provide services to individuals with
developmental disabilities. Semi-independent apartment programs and
supported living
arrangements are not considered residential services for the
purposes of this chapter.
(7) "Semi-independent
apartment program" means a residential program in which
services are provided on a less than twenty-four (24) hour a
day basis. Semi-independent
apartment programs are not licensed pursuant to chapter 24 of
title 40.1.
(8) "Supportive
living arrangement" means a residential setting in which an individual or
individuals with developmental disabilities reside in a private
home with a person or persons to
whom the individual(s) is not related by blood or
marriage. Supportive living arrangements are
not licensed pursuant to chapter 24 of title 40.1.
44-50-3.
Imposition of assessment -- Residential services for individuals with
developmental disabilities. -- (a) An assessment is imposed
upon the gross patient revenue
received by every provider for the provision of residential
services in each month beginning April
1, 2003, at a rate of twenty-five
percent (25%). Every
provider shall pay the monthly assessment
no later than the twenty-fifth (25th) day of each month
following the month of receipt of gross
patient revenue. Notwithstanding any other provisions of this
chapter, no penalty or interest is
imposed for failure to make timely payments of the
assessments due for the months of April, May
and June 2003; provided, that payment for those months
are made within thirty (30) days notice
from the tax administrator.
(b) The tax
administrator is directed to insure that the assessment rate established in
subsection (a) of this section does not exceed the maximum rate
of assessment that the laws of the
United
States and/or any rules, regulations, or standards issued under those laws,
relating to
health care provider assessments will allow without reduction
in federal financial participation. In
order to make that determination, the tax administrator
shall apply the appropriate federal law
and/or any rules, regulations, or standards relating to
health care provider assessments.
(c) If, after
applying the applicable federal law and/or rules, regulations, or standards,
the
tax administrator determines that the assessment rate
established in subsection (a) of this section
exceeds the maximum rate of assessment that the federal law
will allow without reduction in
federal financial participation, then the tax administrator
is directed to lower the assessment rate
to a rate which is equal to the maximum rate which the
federal law will allow without reduction
in federal participation. The authority of the tax
administrator to lower the assessment rate
established in subsection (a) of this section shall be limited
solely to a determination that the
assessment rate in subsection (a) of this section exceeds that
which is allowed without reduction
in federal financial participation, under the laws of
the
or standards issued under this law, relating to health
care provider assessments.
(d) In order that
the tax administrator may properly carry out the duties under this
section, the director of the department of human services is
directed to keep the tax administrator
informed of any changes in federal law and/or any rules,
regulations, or standards issued under
this law that affect rates under health care provider
assessments.
44-50-4.
Returns. -- (a) Every
provider shall on or before the twenty-fifth (25th) day of
the month following the month of receipt of gross patient
revenue make a return to the tax
administrator.
(b) The tax
administrator shall adopt rules, pursuant to this chapter, relative to the form
of the return and the data which it must contain for the
correct computation of gross patient
revenue and the assessment upon such amount. All returns
shall be signed by the provider or by
its authorized representative, subject to the pains and
penalties of perjury. If the return shows an
overpayment of the assessment due, the tax administrator shall
refund or credit the overpayment
to the provider.
(c) For good cause, the
tax administrator may extend the time within which a provider is
required to file a return, and if the return is filed during
the period of extension no penalty or late
filing charge may be imposed for failure to file the return
at the time required by this chapter, but
the provider shall be liable for interest from the date
on which the assessment would have been
due without extension until the date of payment. Failure
to file the return during the period for the
extension shall void the extension.
44-50-5.
Setoff for delinquent assessments. --
If a provider shall fail to pay an
assessment within thirty (30) days of its due date, the tax
administrator may request any agency
of state government making payments to the provider to
set off the amount of the delinquency
against any payment due the provider from the agency of state
government and remit that sum to
the tax administrator. Upon receipt of the setoff request
from the tax administrator, any agency of
state government is authorized and empowered to set off the
amount of the delinquency against
any payment or amounts due the provider. The amount of
setoff is credited against the assessment
due from the provider.
44-50-6. Assessment
on available information -- Interest on delinquencies --
Penalties -- Collection
powers. -- If any provider shall fail to file a return within
the time
required by this chapter, or shall file an insufficient or
incorrect return, or shall not pay the
assessment imposed by this chapter when it is due, the tax
administrator shall assess upon the
information as may be available, which shall be payable upon
demand and shall bear interest at
the annual rate provided by section 44-1-7 from the date
when the assessment should have been
paid. If any part of the assessment made is due to
negligence or intentional disregard of the
provisions of this chapter, a penalty of ten percent (10%) of
the amount of the determination shall
be added to the assessment. The tax administrator shall
collect the assessment with interest in the
same manner and with the same powers as are prescribed for
collection of taxes in this title.
44-50-7. Claims
for refund -- Hearing upon denial. -- (a) Any
provider, subject to the
provisions of this chapter, may file a claim for refund with the
tax administrator at any time
within two (2) years after the assessment has been paid. If
the tax administrator shall determine
that the assessment has been overpaid, he or she shall
make a refund with interest from the date of
overpayment.
(b) Any provider
whose claim for refund has been denied may, within thirty (30) days
from the date of the mailing by the tax administrator of
the notice of the tax refund claim denial
file a written request for hearing with the tax
administrator and the tax administrator shall, as
soon as practicable, set a time and place for the hearing
and shall notify the provider. After
hearing, the tax administrator shall issue a decision as to
the correctness of the tax, interest and
penalty.
44-50-8.
Hearing by tax administrator on application. --
Any provider aggrieved by
the action of the tax administrator in determining the
amount of any assessment or penalty
imposed under the provisions of this chapter may apply to the
tax administrator, in writing, within
thirty (30) days after the notice of the action is mailed to
it, for a hearing relative to the
assessment or penalty. The tax administrator shall fix a time
and place for the hearing and shall
notify the provider. Upon the hearing the tax administrator
shall correct manifest errors, if any,
disclosed at the hearing and thereupon assess and collect the
amount lawfully due together with
any penalty or interest.
44-50-9.
Appeals. -- Appeals from
administrative orders or decisions made pursuant to
any provisions of this chapter shall be to the sixth
division district court pursuant to chapter 8 of
title 8. The provider's right to appeal under this section
shall be expressly made conditional upon
prepayment of all assessments, interest, and penalties unless
the provider moves for and is
granted an exemption from the prepayment requirement pursuant
to section 8-8-26. If the court,
after appeal, holds that the provider is entitled to a
refund, the provider shall also be paid interest
on the amount at the rate provided in section 44-1-7.1.
44-50-10.
Provider records. -- Every provider
shall:
(1) Keep such records
as may be necessary to determine the amount of its liability under
this chapter;
(2) Preserve the
records for the period of three (3) years following the date of filing of
any return required by this chapter, or until any
litigation or prosecution under this chapter is
finally determined; and
(3) Make the records available for inspection by the tax
administrator or his or her
authorized agents, upon demand, at reasonable times during
regular business hours.
44-50-11.
Method of payment and deposit of assessment. --
(a) The payments required
by this chapter may be made by electronic transfer of
money to the general treasurer and
deposited to the general fund.
(b) The general
treasurer is authorized to establish an account or accounts and to take all
steps necessary to facilitate the electronic transfer of
money. The general treasurer shall provide
the tax administrator a record of any money transferred
and deposited.
44-50-12.
Rules and regulations. -- The tax
administrator shall make and promulgate
rules, regulations, and procedures not inconsistent with
state law and fiscal procedures as he or
she deems necessary for the proper administration of this
chapter and to carry out the provisions,
policy, and purposes of this chapter.
44-50-13.
Release of assessment information. --
Notwithstanding any other provisions
of the general laws, the tax administrator shall not be
prohibited from providing assessment
information to the director of the department of human services
or his or her designee, with
respect to the assessment imposed by this chapter; provided,
that the director of the department of
human services and his or her agents and employees may use
or disclose the information only for
purposes directly connected with the administration of the
duties and programs of the department
of human services.
44-50-14.
Severability. -- If any provision of
this chapter or the application of this
chapter to any person or circumstances is held invalid, that
invalidity shall not affect other
provisions or applications of the chapter, which can be given
effect without the invalid provision
or application, and to this end the provisions of this
chapter are declared to be severable.
SECTION 4. Chapter 44-11 of the General Laws entitled
"Business Corporation Tax" is
hereby amended by adding thereto the following section:
44-11-44. Annual
March 15, 2010 and every March 15th thereafter, the
division of taxation shall annually submit a
report for the previous calendar year of
federal taxable income to the chairpersons of the house
finance committee and senate finance
committee, and the house fiscal advisor and the senate fiscal
advisor. The report should be as
similar as practical to the business and income tax data for
by the Statistics of Income Division of the Internal
Revenue Service.
SECTION 5. Section 28-42-38 of the General Laws in Chapter
28-42 entitled
"Employment Security -
General Provisions" is hereby amended to read as follows:
28-42-38.
Records and reports -- Confidentiality of information. --
(a) Every
employer and every employing unit employing any person in
employment in this state shall keep
true and accurate employment records of all persons
employed by him or her, and of the weekly
hours worked for him or her by each, and of the weekly
wages paid by him or her to each person;
and every employer and employing unit shall keep records
containing any other information that
the director may prescribe. Those records shall at all
times be available within this state and shall
be open to inspection by the director or his or her
authorized representatives at any reasonable
time and as often as the director shall deem necessary.
(b) The director may
require from any employer, or employing unit, employing any
person in this state, any reports covering persons employed
by him or her, on employment,
wages, hours, unemployment, and related matters which the
director deems necessary to the
effective administration of chapters 42 -- 44 of this title.
(c) (1) Information obtained,
or information contained in other records of the department
obtained from any individual pursuant to the administration of
those chapters, shall be held
confidential by the director and shall not be published or be open
to public inspection in any
manner revealing the individual's or employing unit's
identity, but any claimant at a hearing
provided for in those chapters shall be supplied with
information from those records of the extent
necessary for the proper presentation of his or her claim. Any
department employee guilty of
violating this provision shall be subject to the penalties
provided in chapters 42 -- 44 of this title;
provided, that nothing contained in this subsection shall be
construed to prevent:
(i) The director, or any qualified attorney whom the
director has designated to represent
him or her in any court of this state, or the attorney
general, from making any record, report, or
other information referred to in this section, available in
any proceeding before any court of this
state in any action to which the director is a party;
(ii) The director from
making any record, report, or other information referred to in this
section, available to any agency of this state or any agency
of a political subdivision of this state
charged with the administration of public assistance within
this state, or any of its political
subdivisions;
(iii) The director from
making any record, report, or other information referred to in this
section available to the railroad retirement board or to
employees of the Internal Revenue Service
in the performance of their public duties, and the
director shall furnish, at the expense of the
railroad retirement board or the Internal Revenue Service,
copies of those records, reports, or
other information referred to in this section;
(iv)
The director from making available upon request and on a reimbursable
basis, any
record, report, or other information referred to in this
section to the federal Department of Health
and Human Services in accordance with the provisions of
United States P.L. 100-485, Family
Support Act of 1988, or to the federal Department of
Housing and Urban Development and to
authorized representatives of public housing agencies in
accordance with the Stewart B.
McKinney Homeless Assistance Act, 42
U.S.C. section 11301 et seq.;
(v) The director from
making available to the Division of Taxation upon request of the
tax administrator any record, report, or other information
referred to in Title 28, Chapter 42 for
the purposes of compiling the annual unified economic
development budget report and
performing the requirements under subsection 42-142-3(e);
enforcing the provisions of Title 28,
Chapter 42; and/or performing any
of its obligations under Title 44. The information received by
the Division of Taxation from the department of labor and
training pursuant hereto pertaining to
an individual employer shall be held confidential and
shall not be open to public inspection.
Nothing herein shall prohibit the disclosure of
statistics and/or statistical data that do not disclose
the identity of individual employers and/or the contents
of specific returns.
(v)(vi) The director from making, and the director shall
make, reports in the form and
containing any information that the federal Social Security
Administration may from time to time
require, and complying with any provisions that the federal
Social Security Administration may
from time to time find necessary to assure the correctness
and verification of those reports. The
director shall make available, upon request, to any agency of
the
administration of public works or assistance through public
employment, the name, address,
ordinary occupation, and employment status of each recipient
of unemployment compensation
and a statement of that recipient's rights to further
compensation under that law;
(vi)(vii)
The director from conducting any investigations he or she deems relevant in
connection with these provisions;
(vii)(viii)
The director from conducting any investigations he or she deems relevant in
connection with the performance of his or her duties pursuant to
the administration of the
chapters 29, 32, 33, 34, 36, 37 and 41 of this title, or from
making any record, report, or other
information referred to in this section available to the Workers'
Compensation Fraud Prevention
Unit for use in the performance of its duties under
section 42-16.1-12; or
(viii)(ix) The director from forwarding, and the director
shall forward to the jury
commissioner, the names and addresses of all individuals who are
receiving unemployment
compensation on a yearly basis in accordance with section
9-9-1(e).
(2) The director may
publish in statistical form the results of any investigations without
disclosing the identity of the individuals involved.
SECTION 6. Sections 44-30.1-1, 44-30.1-3 and 44-30.1-4 of
the General Laws in
Chapter 44-30.1 entitled
“Setoff of Refund of Personal Income Tax” are hereby
amended to read
as follows:
44-30.1-1. Definitions. -- (a) "Benefit
overpayments and interest owed" means any
amount in excess of five hundred dollars ($500) determined
to be recoverable under the
provisions of chapters 39 – 44 of title 28.
(b)
"Cash assistance benefit overpayments" means any amount of cash
assistance
benefits which constitutes an overpayment of benefits under
the provisions of the Family
Independence Act, chapter 5.1 of the
chapter 5.2 of
title 40, and/or the predecessor family assistance programs, formerly
known as the
Family
to Families With Dependent Children program, as
previously established by § 40-6-4, which
overpayment amount has been established by court order, by administrative
hearing conducted by
the department of human services, or by written agreement
between the department of human
services and the individual.
(c)
"Claimant agency" means either:
(1)
The department of human services, with respect (1) to past-due support which
has
been assigned to the department of human services by
public assistance and medical assistance
recipients or by the department for children, youth and
families, (2) past-due support which it is
attempting to collect on behalf of any individual not eligible
as a public assistance recipient, and
(3) cash assistance benefit
overpayments or medical assistance benefit overpayments, as defined
herein; or
(2)
The
obligations owed to that agency or to the state of
pay student loans, health professions contract advances
or scholarships or grant over-awards, or
(ii)
The
for the United States Department of Education or other
student loan guarantee agencies in other
states which have negotiated a reciprocal arrangement with
the RIHEAA for the setoff of refunds
of personal income taxes against defaulted loan
obligations.
(3)
The
restitution owed; or
(4)
The department of labor and training with respect to benefit overpayments and
interest owed in excess of five hundred dollars ($500).
(d)
"Court costs owed" means any fines, fees, and/or court costs which
have been
assessed pursuant to a criminal disposition by a judge of the
district, family and superior courts,
including, but not limited to, those amounts assessed pursuant
to chapters 20 and 25 of title 12
and those amounts assessed pursuant to title 31,
including also those fines, fees, and/or court costs
assessed by the traffic tribunal or municipal court associated
with motor vehicle violations which
have not been paid and which have been declared delinquent
by the administrative judge of the
court making the assessment.
(e)
"Debtor" means:
(1)
Any individual who owes past-due support which has been assigned to the
department of human services by public assistance and medical
assistance recipients or by the
department of children, youth and families, or owes past due
support to any individual not
eligible as a public assistance recipient;
(2)
Any individual who has obligations owed to RIHEAA or the state of
the United States Department of Education or other states
and agencies that have negotiated
reciprocal agreements with RIHEAA;
(3)
Any individual who owes fines, fees, and/or court costs to the superior,
family,
district courts and the traffic tribunal and municipal court
associated with motor vehicle
violations;
(4)
Any individual who owes restitution to any victim of any offense which has been
ordered by a judge of the district, family and superior
courts pursuant to a disposition in a
criminal case and which has been made payable through the
administrative office of state courts
pursuant to § 12-19-34 except that obligations discharged in
bankruptcy shall not be included;
(5)
Any individual who owes any sum in excess of five hundred dollars ($500) for
benefit overpayments and interest to the department of labor
and training determined to be
recoverable under the provisions of chapters 39-44 of title 28.
(6)
Any individual who owes any sum of cash assistance benefit overpayments to the
department of human services.
(f)
"Division" means the department of revenue, division of taxation.
(g)
"Fines owed" means any fines, fees, and/or court costs which have
been ordered
paid as a penalty in a criminal case by a judge of the
district, family and superior courts and those
fines, fees, and/or court costs ordered paid by the traffic
tribunal or municipal court for motor
vehicle violations as described in § 31-41.1-4 which have not
been paid and which have been
declared delinquent by the administrative judge of the court
making the assessment.
(h) “Medical
assistance benefit overpayment” means any amount of medical assistance
benefits which constitutes an overpayment of medical
assistance benefits. The department is
authorized to promulgate rules and regulations to provide for
notice and hearing prior to the
income tax intercept by the department for income tax
intercept for medical assistance benefits
overpaid to the recipient. The amount of overpayment of
benefits may include the overpayment
of benefits due to the fact that the Medicaid recipient
failed to pay the cost share obligation
lawfully imposed in accordance with
(i)
“Medical assistance cost share arrearage” means any amount due and owing to the
department of human services as a result of a Medicaid
recipient’s failure to pay their cost share
obligation, including any amount due for a cost sharing
obligation or medical assistance premium
obligation, imposed in accordance with Title 40, Chapter 8.4 of
the Rhode Island General Laws.
(h)(j)"Obligation
owed" means the total amount owed by any individual on:
(1)
Any guaranteed student loan or parent loan for undergraduate students for which
RIHEAA has had to pay the guarantee, or for which
RIHEAA is acting as agent on behalf of the
United States Department of Education or other state
cooperating agencies which have had to pay
a guarantee,
(2)
Any contract fee advanced by either RIHEAA or the state of
of any individual participating in a health professions
educational program for which payment has
not been made according to the terms of the contract, and
(3)
Any amount of scholarship or grant funds which constitutes an over-award,
whether
due to error or to the submission of false information,
and for which repayment has been
demanded by the agency, but which has not been paid.
(i)(k) "Past-due
support" means the amount of court-ordered child support or
maintenance, child medical support or a spousal support order for
a custodial parent having
custody of a minor child, which is overdue or otherwise in
arrears, regardless of whether there is
an outstanding judgment for that amount, and whether the
order for the support or maintenance
has been established by a court or by an administrative
process authorized under the laws of any
state.
(j)(l)"Refund"
means the
determines to be due to a taxpayer.
(k)(m)
"Restitution owed" means any amount which has been ordered paid
pursuant to
a criminal case disposition by a judge of the district,
family and superior courts pursuant to
chapter 19 of title 12, which has not been paid and which has
been declared delinquent by the
administrative judge of the court making the assessment.
44-30.1-3. Collection of debts by setoff. -- Within
a time frame established by the
division of taxation, the claimant agency shall supply the
information necessary relative to each
debtor owing the state money, and further, shall certify the
amount of debt or debts owed to the
state by each debtor. Upon receiving notice from the
claimant agency that a named debtor owes
past-due support, delinquent court costs, fines, or
restitution or benefit overpayments and interest
owed, has obligations owed as described in § 44-30.1-1(g),
or cash assistance benefit
overpayments, medical assistance benefit overpayments, or
medical assistance cost share
arrearages, the
division of taxation shall determine whether any amount, as a refund of taxes
paid,
is payable to the debtor, regardless of whether the
debtor filed an income tax return as a married
or unmarried individual. If the division of taxation
determines that any refund is payable, the
division of taxation shall set off the past-due support,
delinquent court costs, fines or restitution or
benefit overpayments and interest owed, the obligation owed, or
cash assistance benefit
overpayments, medical assistance benefit overpayments, or
medical assistance cost share
arrearages, against
the debtor's refund and shall reduce the debtor's refund by the amount so
determined. The division of taxation shall transfer the amount
of past-due support, delinquent
court costs, fines or restitution, or benefit overpayments
and interest owed, obligation owed, or
cash assistance benefit overpayments, medical
assistance benefit overpayments, or medical
assistance cost share arrearages, set off against the debtor's refund to the claimant
agency or
in the case of the United States Department of Education
or other out-of-state agencies, to
judicial proceedings to contest the setoff shall not stay nor
delay the setoff and transfer of
refunds to the claimant agency. If the amount of the debtor's
refund exceeds the amount of
the past-due support, delinquent court costs, fines, or
restitution or benefit overpayments and
interest owed, obligation owed, or cash assistance
benefit overpayments, medical assistance
benefit overpayments, or medical assistance cost share
arrearages, the division of taxation
shall
refund the excess amount to the debtor. If in any instance
with regard to the debtor the division
of taxation has received notice from more than one claimant
agency, the claim by the bureau of
child support shall receive first priority, the obligations
owed shall have second priority, and the
delinquent court costs, fines or restitution shall have third
priority, the benefit overpayments and
interest owed the fourth priority and the cash assistance
benefit overpayments the fifth priority,
and medical assistance benefit overpayments, or medical
assistance cost share arrearages the
sixth priority.
44-30.1-4. Procedures for setoff and notification of a
debtor. -- (a) The division of
taxation shall prescribe the time or times at which the
claimant agency must submit notices of
past-due support, the manner in which the notices must be
submitted, and the necessary
information that must be contained in or accompany the notices.
The division of taxation shall,
from time to time, determine the minimum amount of claim
to which the setoff procedure may be
applied.
(b)
Prior to submitting information relating to a debtor for purposes of setoff of
the
debtor's income tax refund, the claimant agency shall provide
written notice to each debtor, the
amount of past-due support, delinquent court costs, fines or
restitution, or benefit overpayments
and interest owed, other obligation owed, or cash
assistance benefit overpayments, medical
assistance benefit overpayments, or medical assistance cost
share arrearages, the intention to
set
off the amount owed against the refund, the debtor's
right to an administrative hearing to contest
the setoff upon written request made within thirty (30)
days of the mailing of the notice to the
debtor, the debtor's right to judicial review of the
administrative hearing decision, the general
nature of the potential defenses available to the debtor,
and, in general terms, the rights of non-
obligated spouses with respect to income tax refunds in the
event a joint return is filed.
(c) At
the time of the transfer of funds to a claimant agency as provided in this
chapter,
the division of taxation shall notify the debtor whose
refund is sought to be set off that the
transfer has been made. The notice shall state the name of the
debtor, the amount of the past-due
support being claimed, the transfer of funds to the claimant
agency, the amount of the refund in
excess of the amount claimed, if any. In the case of a joint
refund, the notice shall also state the
name of a taxpayer-spouse named in the return, if any,
against whom no past-due support,
delinquent court costs, fines or restitution, or benefit
overpayments and interest owed, obligation
owed, or cash assistance benefit overpayments, medical
assistance benefit overpayments, or
medical assistance cost share arrearages is claimed, the opportunity to request that the
refund be
divided between the spouses by filing an amended income tax
return in conformance with § 44-
30-11 showing each spouse's share of the tax and the
contribution to the overpayment of tax
resulting in the refund.
(d)
Upon receipt of funds transferred from the division of taxation, the claimant
agency
deposits and holds the funds in an escrow account until final
determination of setoff. Upon final
determination of the amount of the claim to be set off by: (1)
default for failure to apply for a
hearing pursuant to subsection (b) of this section, or (2)
decision of the hearing officer pursuant to
§ 44-30.1-5, the claimant agency shall remove the
account of the claim payment from the escrow
account, and credit the amount to the debtor's obligation.
The pendency of judicial proceedings
pursuant to § 42-35-15 to review the administrative decision
shall not stay nor delay the setoff,
transfer, and disbursement of the tax refund in question.
(e)
With respect to setoff for past-due support, or cash assistance benefit
overpayments,
medical assistance benefit overpayments, or medical
assistance cost share arrearages, the
division
of taxation shall provide the debtor's address and
social security number to the department of
human services.
(f)
With respect to setoff for past-due support, the department of human services
must
inform a non-public assistance custodial parent in advance
if it will first apply any setoff amount
to be received from the division of taxation to satisfy
past-due support assigned to it.
SECTION 7. Section 44-30-85 of the General Laws in Chapter
44-30 entitled “Personal
Income Tax” is hereby
amended to read as follows:
44-30-85. Additions to tax and civil penalties. --
(a) Failure to file tax returns or to
pay tax. In the case of failure:
(1) To file the
return on or before the prescribed date, unless it is shown
that the failure is due to reasonable
cause and not due to willful neglect, an addition to tax
shall be made equal to five percent (5%) of
the tax required to be reported if the failure is for not
more than one month, with an additional
five percent (5%) for each additional month or fraction
thereof during which the failure
continues, not exceeding twenty-five percent (25%) in the
aggregate. For this purpose, the
amount of tax required to be reported shall be reduced by an
amount of the tax paid on or before
the date prescribed for payment and by the amount of any
credit against the tax which may
properly be claimed upon the return;
(2) To
pay the amount shown as tax on the personal income tax return or the
employer's
withheld tax return
on or before the prescribed date for payment of the tax (determined with
regard to any extension of time for payment) unless it is
shown that the failure is due to
reasonable cause and not due to willful neglect, there shall be
added to the amount shown as tax
on the return five-tenths percent (0.5%) of the amount
of the tax if the failure is for not more than
one month, with an additional five-tenths percent (0.5%)
for each additional month or fraction
thereof during which the failure continues, not exceeding
twenty-five percent (25%) in the
aggregate; or
(3) To
pay any amount in respect of any tax required to be shown on a return which is
not so shown, including an assessment made as a result of
mathematical error, within ten (10)
days of the date of the notice and demand therefor, unless it is shown that the failure is due to
reasonable cause and not due to willful neglect, there shall be
added to the amount of tax stated in
the notice and demand five-tenths percent (0.5%) of the
amount of the tax if the failure is for not
more than one month, with an additional five-tenths
percent (0.5%) for each additional month or
fraction thereof during which the failure continues, not
exceeding twenty-five percent (25%) in
the aggregate.
(b)
Negligence. If any part of a deficiency is due to negligence or intentional
disregard
of the
without intent to defraud), five percent (5%) of that part of
the deficiency shall be added to the
tax.
(c)
Fraud. If any part of a deficiency is due to fraud, fifty percent (50%) of that
part of
the deficiency shall be added to the tax. This amount
shall be in lieu of any other additional
amounts imposed by subsections (a) and (b) of this section.
(d)
Determination of deficiency. For purposes of subsections (b) and (c) of this
section,
the amount shown as the tax by the taxpayer upon his or
her return shall be taken into account in
determining the amount of the deficiency only if the return was
filed on or before the last day
prescribed for the filing of the return, determined with regard
to any extension of time for the
filing.
(e)
Failure to collect and pay over tax. Any person required to collect, truthfully
account for, and pay over the
tax or truthfully account for and pay over the tax or
willfully attempts in any manner to evade or
defeat the tax or the payment thereof, shall, in addition to
other penalties provided by law, be
liable to a civil penalty equal to the total amount of the
tax evaded, or not collected, or not
accounted for and paid over.
(f)
Failure to file certain information returns. In case of each failure to file an
information statement as required under authority of §
44-30-58(c) in respect of payments to
another person, unless it is shown that the failure is due to
reasonable cause and not to willful
neglect, the person failing to file the required statement
shall, upon notice and demand by the tax
administrator made in the same manner as for tax, pay a civil
penalty of one dollar ($1.00) for
each statement not so filed, but the total amount imposed
on the delinquent person for all the
failures during any calendar year shall not exceed one
thousand dollars ($1,000).
(g)
Additions and penalties treated as tax. The additions to the tax and civil
penalties
provided by this section shall be paid upon notice and demand
and shall be assessed, collected,
and paid in the same manner as taxes, except that any
additional amount under subsection (a) of
this section, not attributable to a deficiency, may be
assessed without regard to the restrictions of
§ 44-30-81.
(h)
Bad checks. If any check or money order in payment of
any amount receivable
under this title is not duly paid, in addition to any other
penalties provided by law, there shall be
paid as a penalty by the person who tendered the check,
upon notice and demand by the tax
administrator or his or her delegate, in the same manner as tax, an
amount equal to one percent
(1%) of the amount of the check, except that if the
amount of the check is less than five hundred
dollars ($500), the penalty under this section shall be five
dollars ($5.00). This subsection shall
not apply if the person tendered the check in good faith
and with reasonable cause to believe that
it would be duly paid.
(i) "Person" defined. As used in this section, the
term "person" includes an officer or
employee of a corporation, including a dissolved corporation,
or a member or employee of a
partnership, who as an officer, employee, or member is under a
duty to perform the act in respect
of which the violation occurs.
SECTION 8. Section 44-18-15 of the General Laws in Chapter
44-18 entitled "Sales and
Use Taxes - Liability and
Computation" is hereby amended to read as follows:
44-18-15.
"Retailer" defined. -- (a) "Retailer" includes:
(1) Every person
engaged in the business of making sales at retail, including sales at
auction of tangible personal property owned by the person or
others.
(2) Every person
making sales of tangible personal property through an independent
contractor or other representative, if the retailer enters into
an agreement with a resident of this
state, under which the resident, for a commission or other
consideration, directly or indirectly
refers potential customers, whether by a link on an Internet
website or otherwise, to the retailer,
provided the cumulative gross receipts from sales by the
retailer to customers in the state who are
referred to the retailer by all residents with this type of an
agreement with the retailer, is in excess
of five thousand dollars ($5,000) during the preceding four
(4) quarterly periods ending on the
last day of March, June, September and December. Such
retailer shall be presumed to be
soliciting business through such independent contractor or other
representative, which
presumption may be rebutted by proof that the resident with whom
the retailer has an agreement
did not engage in any solicitation in the state on behalf
of the retailer that would satisfy the nexus
requirement of the
(2)(3)
Every person engaged in the business of making sales for storage, use, or other
consumption, or the business of making sales at auction of
tangible personal property owned by
the person or others for storage, use, or other
consumption.
(3)(4) A
person conducting a horse race meeting with respect to horses, which are
claimed during the meeting.
(4)(5)
Every person engaged in the business of renting any living quarters in any
hotel,
rooming house, or tourist camp.
(5)(6)
Every person maintaining a business within or outside of this state who engages
in
the regular or systematic solicitation of sales of
tangible personal property in this state by means
of:
(i)
Advertising in newspapers, magazines, and other periodicals published in this
state,
sold over the counter in this state or sold by
subscription to residents of this state, billboards
located in this state, airborne advertising messages produced
or transported in the airspace above
this state, display cards and posters on common carriers
or any other means of public conveyance
incorporated or operated primarily in this state, brochures,
catalogs, circulars, coupons,
pamphlets, samples, and similar advertising material mailed to,
or distributed within this state to
residents of this state;
(ii) Telephone;
(iii) Computer assisted
shopping networks; and
(iv)
Television, radio or any other electronic media, which is intended to be
broadcast to
consumers located in this state.
(b) When the tax administrator
determines that it is necessary for the proper
administration of chapters 18 and 19 of this title to regard any
salespersons, representatives,
truckers, peddlers, or canvassers as the agents of the
dealers, distributors, supervisors, employers,
or persons under whom they operate or from whom they
obtain the tangible personal property
sold by them, irrespective of whether they are making
sales on their own behalf or on behalf of
the dealers, distributors, supervisors, or employers, the
tax administrator may so regard them and
may regard the dealers, distributors, supervisors, or
employers as retailers for purposes of
chapters 18 and 19 of this title.
SECTION 9. Chapter 44-19 of the General Laws entitled
"Sales and Use Taxes -
Enforcement and
Collection" is hereby amended by adding thereto the following section:
44-19-10.3.
Electronic filing of sales tax returns. -- (a) Beginning on January
1, 2010,
any person required to collect and remit sales and use
tax to the state of
average monthly sales and use tax liability of two hundred
dollars ($200) or more per month for
the previous calendar year, shall remit said payments by
electronic funds transfer or other
electronic means defined by the tax administrator. The tax
administrator shall adopt rules
necessary to administer a program of electronic funds transfer
or other electronic filing system.
(b) If any person
fails to remit said taxes by electronic funds transfer or other electronic
means defined by the tax administrator as required
hereunder, the amount of tax required to have
been electronically transferred shall be increased by the
lesser of five percent (5%) of the amount
that was not so transferred or five hundred dollars
($500), whichever is less, unless there was
reasonable cause for the failure and such failure was not due to
negligence or willful neglect.
(c) The tax
administrator is authorized to waive the electronic filing requirement in a
given year a person who can show that filing electronically
will cause undue hardship.
SECTION 10. Section 44-30-71 of the General Laws in Chapter
44-30 entitled "Personal
Income Tax" is hereby
amended to read as follows:
44-30-71.
Requirement of withholding tax from wages. -- (a) General. - Every
employer maintaining an office or transacting business within
this state and making payment of
any wages subject to
shall deduct and withhold from the wages for each payroll
period a tax computed in such manner
as to result, so far as practicable, in withholding from
the employee's wages during each calendar
year an amount substantially equivalent to the tax
reasonably estimated to be due resulting from
the inclusion in the employee's
calendar year. The method of determining the amount to be
withheld shall be prescribed by
regulations of the tax administrator, with due regard to the
withholding exemptions of the
employee.
(b) Withholding
exemptions. - For purposes of this section:
(1) An employee shall
be entitled to the equivalent of the same number of
withholding exemptions as the number of withholding exemptions to
which he or she is entitled
for federal income tax withholding purposes. An employer
may rely upon the number of federal
withholding exemptions claimed by the employee.
(2) The amount of the
equivalent of each
equal to and correspond to those set forth in 26 U.S.C.
section 3402(b).
(c) Electronic
filing. Any person required to withhold and remit tax under this section
with ten (10) or more employees must make the payments by
electronic funds transfer or other
electronic means defined by the tax administrator. The tax
administrator shall adopt rules
necessary to administer a program of electronic funds transfer
or other electronic filing system.
(1) In the case of
failure of a person required to deposit taxes by electronic funds transfer
or other electronic means defined by the tax
administrator under the provisions of this section,
unless it is shown that such failure is due to reasonable
cause and not due to willful neglect, there
shall be added to the amount shown as tax required to have
electronically transferred five percent
(5%) of the amount or five hundred dollars ($500) per
required payment, whichever is less.
(2) The tax
administrator is authorized to waive the electronic filing requirement in a
given year for persons who can show that filing
electronically will cause undue hardship.
SECTION 11. Title 44 of the General Laws entitled
"Taxation" is hereby amended by
adding thereto the following chapter:
CHAPTER
66
RECOGNITION
OF INCOME FROM DISCHARGE OF BUSINESS INDEBTEDNESS
44-66-1.
Recognition of income from discharge of business indebtedness.
-- For
purposes of
recognition of income from the discharge of business indebtedness
deferred under the American
Recovery and Reinvestment Act of 2009 for federal tax
purposes, must be reported as a
modification increasing federal income for
When claimed as income on a future federal tax return
it may be reported as a modification
decreasing federal income for
SECTION 12. Section 42-64.5-2 of the General Laws in Chapter
42-64.5 entitled "Jobs
Development Act" is
hereby amended to read as follows:
42-64.5-2.
Definitions. -- As used in this chapter, unless
the context clearly indicates
otherwise:
(1) "Adjusted
current employment" means, for any taxable year ending on or after July 1,
1995, the aggregate of the average daily number of
full-time equivalent active employees
employed within the State by an eligible company and its
eligible subsidiaries during each taxable
year.
(2) "Affiliated
entity" means any corporation owned or controlled by the same persons or
shareholders who own or control an eligible company.
(3) "Base
employment" means, except as otherwise provided in section 42-64.5-7, the
aggregate number of full-time equivalent active employees
employed within the State by an
eligible company and its eligible subsidiaries on July 1,
1994, or at the election of the eligible
company, on an alternative date as provided by section
42-64.5-5. In the case of a manufacturing
company which is ruined by disaster, the aggregate number of
full-time equivalent active
employees employed at the destroyed facility would be zero,
under which circumstance the base
employment date shall be July 1 of the calendar year in which
the disaster occurred. Only one
base employment period can be elected for purposes of a
rate reduction by an eligible company.
(4)
"Disaster" means an occurrence, natural or otherwise, which results
in the destruction
of sixty percent (60%) or more of an operating
manufacturing business facility in this state,
thereby making the production of products by the eligible
company impossible and as a result
active employees of the facility are without employment in
that facility. However, disaster does
not include any damage resulting from the willful act of
the owner(s) of the manufacturing
business facility.
(5) "Eligible
company" means any corporation, state bank, federal savings bank, trust
company, national banking association, bank holding company,
loan and investment company,
mutual savings bank, credit union, building and loan
association, insurance company, investment
company, broker-dealer company, manufacturing company,
telecommunications company or
surety company or an eligible subsidiary of any of the
foregoing. An eligible company does not
have to be in existence, be qualified to do business in
the state or have any employees in this state
at the time its base employment is determined.
(6) "Eligible
subsidiary" means each corporation eighty percent (80%) or more of the
outstanding common stock of which is owned by an eligible
company.
(7) "Full-time
equivalent active employee" means any employee of an eligible company
who: (1) works a minimum of thirty (30) hours per week
within the State, or two (2) or more part-
time employees whose combined weekly hours equal or exceed
thirty (30) hours per week within
the State; and (2) earns no less than one hundred fifty
percent (150%) of the hourly minimum
wage prescribed by
July 1, 2003 and the first tax year that an eligible
company qualifies for a rate reduction pursuant
to section 42-64.5-3, for purposes of this section, one
hundred fifty percent (150%) of the hourly
minimum wage prescribed by
the hourly minimum wage prescribed by
treated as a full-time equivalent active employee during a
tax year that the eligible company
qualified for a rate reduction pursuant to section 42-64.5-3,
or, if later, (b) the time the employee
first earned at least one hundred fifty percent (150%) of
the hourly minimum wage prescribed by
or after July 1, 2009 for a rate reduction pursuant to
section 42-64.5-3, the term “full-time
equivalent active employee” means any employee of an eligible
company who: (1) works a
minimum of thirty (30) hours per week within the state; (2)
earns healthcare insurance benefits,
and retirement benefits; and (3) earns no less than two
hundred fifty percent (250%) of the hourly
minimum wage prescribed by
treated as a full-time equivalent active employee during a
tax year that the eligible company
qualified for a rate reduction pursuant to section 42-64.5-3;
or (ii) the time the employee first
earned at least two hundred fifty percent (250%) of the
hourly minimum wage prescribed by
before July 1, 2009 for a rate reduction pursuant to section
42-64.5-3, any new “full-time
equivalent active employee”, who replaces an existing “full-time
equivalent active employee”,
shall meet the following standards to remain eligible: (1)
works a minimum of thirty (30) hours
per week within the state; (2) earns healthcare insurance
benefits, and retirement benefits; and (3)
earns no less than two hundred fifty percent (250%) of the
hourly minimum wage prescribed by
equivalent active employee during a tax year that the eligible
company qualified for a rate
reduction pursuant to section 42-64.5-3; or (ii) the time the
employee first earned at least two
hundred fifty percent (250%) of the hourly minimum wage
prescribed by
employee of the eligible company.
(8) "Initial new
employment level" means the number of units of new employment
reported by an eligible company in 1997, or, if applicable,
the third taxable year following the
base employment period election set forth in section
42-64.5-5.
(9) (i) "New employment"
means for each taxable year the amount of adjusted current
employment for each taxable year minus the amount of base
employment, but in no event less
than zero; provided, however, no eligible company is
permitted to transfer, assign or hire
employees who are already employed within the State by such
eligible company from itself or
any affiliated entity or utilize any other artifice or
device for the purpose of artificially creating
new employees in order to qualify for the rate reduction
provided for in this chapter.
(ii) Except as provided
in section 42-64.5-7, "new employment" shall not include
employees already employed in this state who become employees
of an eligible company as a
result of an acquisition of an existing company by purchase,
merger, or otherwise, if the existing
company was eligible for a rate reduction. In the case of a
manufacturing company that suffers a
disaster, it shall mean any employment retained or added as
the result of reconstruction of the
manufacturing facility.
(10) "Rate
reduction" means the reduction in tax rate specified in section 42-64.5-4.
(11) "Small
business concern" means, except as otherwise provided in section
42-64.5-7,
any eligible company which has a base employment level of
less than one hundred (100);
provided, however, that a telecommunications company may not
qualify as a small business
concern.
(12) "State"
means the State of
(13)
"Telecommunications company" means any
public service company or corporation
whose rate of taxation is determined under section
44-13-4(4).
(14) "Total
employment" for an eligible company as of any date means the total number
of full-time equivalent active employees employed within
the State by the eligible company and
its eligible subsidiaries on such date.
(15) "Units of new
employment" means: (i) for eligible companies
which are not small
business concerns, the amount of new employment divided by
fifty (50), rounded down to the
nearest multiple of fifty (50), and (ii) for eligible
companies which are small business concerns
the amount of new employment divided by ten (10), rounded
down to the nearest multiple of ten
(10); provided, however, that an eligible company
(other than an eligible company that is a
telecommunications company) with adjusted current employment of one
hundred (100) or more
employees in its first year of operation or in any other period
following the date its base
employment is determined shall determine its units of new
employment by dividing the first one
hundred (100) employees less its base employment by ten (10),
rounded down to the nearest
multiple of ten (10), and by dividing the number of additional
employees in excess of one
hundred (100) by fifty (50), rounded down to the nearest
multiple of fifty (50).
SECTION 13. Chapter 42-64.5 of the General Laws entitled
"Jobs Development Act" is
hereby amended by adding thereto the following section:
42-64.5-8.
Reporting requirement. – On or before September
1, 2009, and every
September 1 thereafter, all eligible companies
qualifying for a rate reduction pursuant to section
42-64.5-3 shall file an annual report with the tax
administrator. Said report shall contain each full-
time equivalent active employee’s name, social security
number, date of hire, and hourly wage as
of the immediately preceding July 1 and such other
information deemed necessary by the tax
administrator. The report shall be filed on a form and in a manner
prescribed by the tax
administrator.
SECTION 14. Section 44-22-1.1 of the General Laws in Chapter
44-22 entitled "Estate
and Transfer Taxes - Liability and Computation" is
hereby amended to read as follows:
44-22-1.1. Tax on
net estate of decedent. -- (a) (1) For
decedents whose death occurs on
or after January 1, 1992, but prior to January 1, 2002,
a tax is imposed upon the transfer of the net
estate of every resident or nonresident decedent as a tax
upon the right to transfer. The tax is a
sum equal to the maximum credit for state death taxes
allowed by 26 U.S.C. § 2011.
(2) For decedents whose
death occurs on or after January 1, 2002, but prior to January 1,
2010 a tax
is imposed upon the transfer of the net estate of every resident or nonresident
decedent
as a tax upon the right to transfer. The tax is a sum
equal to the maximum credit for state death
taxes allowed by 26 U.S.C. § 2011 as it was in
effect as of January 1, 2001. ; provided, however,
that the tax shall be imposed only if the net taxable
estate shall exceed six hundred seventy-five
thousand dollars ($675,000). Any scheduled increase in the unified credit provided in 26 U.S.C. §
2010 in effect on January 1, 2001, or thereafter,
shall not apply.
(3) For decedents
whose death occurs on or after January 1, 2010, a tax is imposed upon
the transfer of the net estate of every resident or
nonresident decedent as a tax upon the right to
transfer. The tax is a sum equal to the maximum credit for
state death taxes allowed by 26 U.S.C.
section 2011 as it was in effect as of January 1, 2001;
provided, however, that the tax shall be
imposed only if the net taxable estate shall exceed eight
hundred and fifty thousand dollars
($850,000); provided, further, beginning on January 1,
2011 and each January 1 thereafter, said
amount shall be adjusted by the percentage of increase in
the Consumer Price Index for all Urban
Consumers (CPI-U) as published by the
as of September 30 of the prior calendar year; said
adjustment shall be compounded annually and
shall be rounded up to the nearest five dollar ($5.00)
increment. Any scheduled increase in the
unified credit provided in 26 U.S.C. section 2010 in effect
on January 1, 2003, or thereafter, shall
not apply.
(b) If the decedent's
estate contains property having a tax situs not
within the state, then
the tax determined by this section is reduced to an
amount determined by multiplying the tax by a
fraction whose numerator is the gross estate excluding all
property having a tax situs not within
the state at the decedent's death and whose denominator
is the gross estate. In determining the
fraction, no deductions are considered and the gross estate is
not reduced by a mortgage or other
indebtedness for which the decedent's estate is not liable.
(c) The term terms
"gross taxable estate", or "federal gross
estate" or “net taxable estate”
used in this chapter or chapter 23 of this title has the
same meaning as when used in a comparable
context in the laws of the
provisions of this chapter or chapter 23 of this title. Any
reference in this chapter or chapter 23 of
this title to the Internal Revenue Code or other laws of
the
Revenue Code of 1954, 26 U.S.C. §
1 et seq.
(2) For decedents whose
death occurs on or after January 1, 2002, the term terms
"gross
taxable estate" or "federal gross
estate" or “net taxable estate” used in this chapter or chapter 23
of this title has the same meaning as when used in a
comparable context in the laws of the United
States, unless a different meaning is clearly required
by the provisions of this chapter or chapter
23 of this title. Any reference in this chapter or chapter 23 of this
title to the Internal Revenue
Code or other laws of the
section 1 et seq., as they were in effect as of January 1,
2001, unless otherwise provided.
(d) All values are as
finally determined for federal estate tax purposes.
(e) Property has a tax situs within the state of
(1) If it is real
estate or tangible personal property and has actual situs
within the state of
(2) If it is intangible
personal property and the decedent was a resident.
SECTION 15. Section 44-30-2.6 of the General Laws in Chapter
44-30 entitled "Personal
Income Tax" is hereby
amended to read as follows:
44-30-2.6.
income" means federal taxable income as determined
under the Internal Revenue Code, 26 U.S.C.
section 1 et seq., not including the increase in the basic
standard deduction amount for married
couples filing joint returns as provided in the Jobs and
Growth Tax Relief Reconciliation Act of
2003 and the Economic Growth and Tax Relief
Reconciliation Act of 2001 (EGTRRA), and as
modified by the modifications in section 44-30-12.
(b) Notwithstanding the
provisions of sections 44-30-1 and 44-30-2, for tax years
beginning on or after January 1, 2001, a
of twenty-five and one-half percent (25.5%) for tax year
2001, and twenty-five percent (25%) for
tax year 2002 and thereafter of the federal income tax
rates, including capital gains rates and any
other special rates for other types of income, except as provided
in section 44-30-2.7, which were
in effect immediately prior to enactment of the Economic
Growth and Tax Relief Reconciliation
Act of 2001 (EGTRRA); provided, rate schedules shall
be adjusted for inflation by the tax
administrator beginning in taxable year 2002 and thereafter in the
manner prescribed for
adjustment by the commissioner of Internal Revenue in 26 U.S.C.
section 1(f). However, for tax
years beginning on or after January 1, 2006, a taxpayer may
elect to use the alternative flat tax
rate provided in section 44-30-2.10 to calculate his or
her personal income tax liability.
(c) For tax years beginning on or after January 1, 2001, if a taxpayer has
an alternative
minimum tax for federal tax purposes, the taxpayer shall
determine if he or she has a Rhode
Island alternative minimum tax. The
multiplying the federal tentative minimum tax without allowing
for the increased exemptions
under the Jobs and Growth Tax Relief Reconciliation Act of
2003 (as redetermined on federal
form 6251 Alternative Minimum Tax-Individuals) by
twenty-five and one-half percent (25.5%)
for tax year 2001, and twenty-five percent (25%) for tax
year 2002 and thereafter, and comparing
the product to the
the taxpayer's
(1) For tax years
beginning on or after January 1, 2005 and thereafter the exemption
amount for alternative minimum tax, for
the tax administrator in the manner prescribed for
adjustment by the commissioner of Internal
Revenue in 26 U.S.C. section
1(f).
(2) For the period
January 1, 2007 through December 31, 2007, and thereafter, Rhode
Island taxable income shall be determined by deducting
from federal adjusted gross income as
defined in 26 U.S.C. section 62 as modified by the
modifications in section 44-30-12 the Rhode
Island itemized deduction amount and the
section.
(A) Tax imposed.
(1) There is hereby
imposed on the taxable income of married individuals filing joint
returns and surviving spouses a tax determined in accordance
with the following table:
If taxable income is: The
tax is:
Not over $53,150 3.75%
of taxable income
Over $53,150 but not
over $128,500 $1,993.13
plus 7.00% of the
excess over $53,150
Over $128,500 but not over
$195,850
$7,267.63 plus 7.75% of the
excess over $128,500
Over $195,850 but not
over $349,700 $12,487.25
plus 9.00% of the
excess over $195,850
Over $349,700 $26,333.75
plus 9.90% of the
excess over $349,700
(2) There is hereby
imposed on the taxable income of every head of household a tax
determined in accordance with the following table:
If taxable income is: The
tax is:
Not over $42,650 3.75%
of taxable income
Over $42,650 but not
over $110,100 $1,599.38
plus 7.00% of the
excess over $42,650
Over $110,100 but not
over $178,350 $6,320.88
plus 7.75% of the
excess over $110,100
Over $178,350 but not
over $349,700 $11,610.25
plus 9.00% of the
excess over $178,350
Over $349,700 $27,031.75
plus 9.90% of the
excess over $349,700
(3) There is hereby
imposed on the taxable income of unmarried individuals (other than
surviving spouses and heads of households) a tax determined in
accordance with the following
table:
If taxable income is: The
tax is:
Not over $31,850 3.75%
of taxable income
Over $31,850 but not
over $77,100 $1,194.38
plus 7.00% of the
excess over $31,850
Over $77,100 but not
over $160,850 $4,361.88
plus 7.75% of the
excess over $77,100
Over $160,850 but not
over $349,700 $10,852.50
plus 9.00% of the
excess over $160,850
Over $349,700 $27,849.00
plus 9.90% of the
excess over $349,700
(4) There is hereby
imposed on the taxable income of married individuals filing separate
returns and bankruptcy estates a tax determined in accordance
with the following table:
If taxable income is: The
tax is:
Not over $26,575 3.75%
of taxable income
Over $26,575 but not
over $64,250 $996.56
plus 7.00% of the
excess over $26,575
Over $64,250 but not
over $97,925 $3,633.81
plus 7.75% of the
excess over $64,250
Over $97,925 but not
over $174,850 $6,243.63
plus 9.00% of the
excess over $97,925
Over $174,850 $13,166.88
plus 9.90% of the
excess over $174,850
(5) There is hereby
imposed a taxable income of an estate or trust a tax determined in
accordance with the following table:
If taxable income is: The
tax is:
Not over $2,150 3.75%
of taxable income
Over $2,150 but not over
$5,000 $80.63
plus 7.00% of the excess
over $2,150
Over $5,000 but not over
$7,650 $280.13
plus 7.75% of the
excess over $5,000
Over $7,650 but not over
$10,450 $485.50
plus 9.00% of the
excess over $7,650
Over $10,450 $737.50
plus 9.90% of the
excess over $10,450
(6) Adjustments for
inflation.
The dollars amount
contained in paragraph (A) shall be increased by an amount equal to:
(a) Such dollar amount contained in paragraph (A) in
the year 1993, multiplied by;
(b) The cost-of-living
adjustment determined under section (J) with a base year of 1993;
(c) The cost-of-living adjustment referred to in
subparagraph (a) and (b) used in making
adjustments to the nine percent (9%) and nine and nine tenths
percent (9.9%) dollar amounts shall
be determined under section (J) by substituting
"1994" for "1993."
(B) Maximum capital
gains rates
(1) In general
If a taxpayer has a net
capital gain for any taxable year tax years ending prior to January
1, 2010, the
tax imposed by this section for such taxable year shall not exceed the sum of:
(a) 2.5
% of the net capital gain as reported for federal
income tax purposes under section 26 U.S.C.
1(h)(1)(a) and 26 U.S.C.
1(h)(1)(b).
(b) 5% of the net
capital gain as reported for federal income tax purposes under
26 U.S.C.
1(h)(1)(c).
(c) 6.25% of the net
capital gain as reported for federal income tax purposes under
26
U.S.C. 1(h)(1)(d).
(d) 7% of the net
capital gain as reported for federal income tax purposes under
26 U.S.C.
1(h)(1)(e).
(2) For tax years
beginning on or after January 1, 2010 the tax imposed on net capital
gain shall be determined under subdivision
44-30-2.6(c)(2)(A).
(C) Itemized deductions.
(1) In general
For the purposes of
section (2) "itemized deductions" means the amount of federal
itemized deductions as modified by the modifications in
section 44-30-12.
(2) Individuals who do
not itemize their deductions In the case of an individual who does
not elect to itemize his deductions for the taxable year,
they may elect to take a standard
deduction.
(3) Basic standard
deduction. The
accordance with the following table:
Filing status Amount
Single $5,350
Married filing jointly
or qualifying widow(er) $8,900
Married filing
separately $4,450
Head of Household $7,850
(4) Additional standard
deduction for the aged and blind. An additional standard
deduction shall be allowed for individuals age sixty-five (65)
or older or blind in the amount of
$1,300 for individuals who are not
married and $1,050 for individuals who are married.
(5) Limitation on basic
standard deduction in the case of certain dependents. In the case
of an individual to whom a deduction under section (E)
is allowable to another taxpayer, the basic
standard deduction applicable to such individual shall not
exceed the greater of:
(a) $850;
(b) The sum of $300 and
such individual's earned income;
(6) Certain individuals
not eligible for standard deduction.
In the case of:
(a) A married individual
filing a separate return where either spouse itemizes deductions;
(b) Nonresident alien individual;
(c) An estate or trust;
The standard deduction
shall be zero.
(7) Adjustments for
inflation.
Each dollars amount contained
in paragraphs (3), (4) and (5) shall be increased by an
amount equal to:
(a) Such dollar amount
contained in paragraphs (3), (4) and (5) in the year 1988,
multiplied by
(b) The cost-of-living
adjustment determined under section (J) with a base year of 1988.
(D) Overall Limitation on Itemized Deductions
(1) General rule.
In the case of an
individual whose adjusted gross income as modified by section 44-30-12
exceeds the applicable amount, the amount of the itemized
deductions otherwise allowable for the
taxable year shall be reduced by the lesser of:
(a) Three percent (3%)
of the excess of adjusted gross income as modified by section 44-
30-12 over the applicable amount; or
(b) Eighty percent (80%)
of the amount of the itemized deductions otherwise allowable
for such taxable year.
(2) Applicable amount.
(a)
In general.
For purposes of this
section, the term "applicable amount" means $156,400 ($78,200 in
the case of a separate return by a married individual)
(b) Adjustments for
inflation.
Each dollar amount
contained in paragraph (a) shall be increased by an amount equal to:
(i) Such dollar amount
contained in paragraph (a) in the year 1991, multiplied by
(ii) The cost-of-living
adjustment determined under section (J) with a base year of 1991.
(3) Phase-out of Limitation.
(a)
In general.
In the case of taxable
year beginning after December 31, 2005, and before January 1,
2010, the reduction under section (1) shall be equal
to the applicable fraction of the amount which
would be the amount of such reduction.
(b) Applicable fraction.
For purposes of
paragraph (a), the applicable fraction shall be determined in accordance
with the following table:
For taxable years
beginning in calendar year The applicable fraction is
2006 and 2007 2/3
2008 and 2009 1/3
(E) Exemption Amount
(1) In general.
Except as otherwise
provided in this subsection, the term "exemption amount" mean
$3,400.
(2) Exemption amount
disallowed in case of certain dependents.
In the case of an
individual with respect to whom a deduction under this section is
allowable to another taxpayer for the same taxable year, the
exemption amount applicable to such
individual for such individual's taxable year shall be zero.
(3) Adjustments for
inflation.
The dollar amount
contained in paragraph (1) shall be increased by an amount equal to:
(a) Such dollar amount contained in paragraph (1) in
the year 1989, multiplied by
(b) The cost-of-living
adjustment determined under section (J) with a base year of 1989.
(4) Limitation.
(a)
In general.
In the case of any
taxpayer whose adjusted gross income as modified for the taxable year
exceeds the threshold amount shall be reduced by the
applicable percentage.
(b) Applicable
percentage.
In the case of any
taxpayer whose adjusted gross income for the taxable year exceeds the
threshold amount, the exemption amount shall be reduced by two
(2) percentage points for each
$2,500 (or fraction thereof) by which the taxpayer's
adjusted gross income for the taxable year
exceeds the threshold amount. In the case of a married
individual filing a separate return, the
preceding sentence shall be applied by substituting
"$1,250" for "$2,500." In no event shall the
applicable percentage exceed one hundred percent (100%).
(c) Threshold Amount.
For the purposes of this paragraph, the term "threshold amount"
shall be determined with the following table:
Filing status Amount
Single $156,400
Married filing jointly
of qualifying widow(er) $234,600
Married filing
separately $117,300
Head of Household
$195,500
(d) Adjustments for
inflation.
Each dollars amount
contain in paragraph (b) shall be increased by an amount equal to:
(i) Such dollar amount
contained in paragraph (b) in the year 1991, multiplied by
(ii) The cost-of-living
adjustment determined under section (J) with a base year of 1991.
(5) Phase-out of Limitation.
(a)
In general.
In the case of taxable
years beginning after December 31, 2005, and before January 1,
2010, the reduction under section 4 shall be equal to
the applicable fraction of the amount which
would be the amount of such reduction.
(b) Applicable fraction.
For the purposes of
paragraph (a), the applicable fraction shall be determined in
accordance with the following table:
For taxable years
beginning in calendar year The applicable fraction is
2006 and 2007 2/3
2008 and 2009 1/3
(F) Alternative Minimum
Tax
(1) General rule. -
There is hereby imposed (in addition to any other tax imposed by this
subtitle) a tax equal to the excess (if any) of:
(a) The tentative
minimum tax for the taxable year, over
(b) The regular tax for
the taxable year.
(2) The tentative
minimum tax for the taxable year is the sum of:
(a) 6.5 percent of so
much of the taxable excess as does not exceed $175,000, plus
(b) 7.0 percent of so
much of the taxable excess above $175,000.
(3) The amount
determined under the preceding sentence shall be reduced by the
alternative minimum tax foreign tax credit for the taxable year.
(4) Taxable excess. -
For the purposes of this subsection the term "taxable excess" means
so much of the federal alternative minimum taxable
income as modified by the modifications in
section 44-30-12 as exceeds the exemption amount.
(5) In the case of a
married individual filing a separate return, subparagraph (2) shall be
applied by substituting "$87,500" for $175,000 each
place it appears.
(6) Exemption amount.
For purposes of this
section "exemption amount" means:
Filing status Amount
Single $39,150
Married filing jointly
or qualifying widow(er) $53,700
Married filing
separately $26,850
Head of Household
$39,150
Estate or trust $24,650
(7) Treatment of
unearned income of minor children
(a)
In general.
In the case of a minor
child, the exemption amount for purposes of section (6) shall not
exceed the sum of:
(i)
Such child's earned income, plus
(ii)
$6,000.
(8) Adjustments for
inflation.
The dollar amount contained
in paragraphs (6) and (7) shall be increased by an amount
equal to:
(a) Such dollar amount
contained in paragraphs (6) and (7) in the year 2004, multiplied
by
(b) The cost-of-living
adjustment determined under section (J) with a base year of 2004.
(9) Phase-out.
(a)
In general.
The exemption amount of
any taxpayer shall be reduced (but not below zero) by an
amount equal to twenty-five percent (25%) of the amount by
which alternative minimum taxable
income of the taxpayer exceeds the threshold amount.
(b) Threshold amount.
For purposes of this
paragraph, the term "threshold amount" shall be determined with the
following table:
Filing status Amount
Single $123,250
Married filing jointly
or qualifying widow(er) $164,350
Married filing
separately $82,175
Head of Household
$123,250
Estate or Trust $82,150
(c) Adjustments for
inflation
Each dollar amount
contained in paragraph (9) shall be increased by an amount equal to:
(i) Such dollar amount
contained in paragraph (9) in the year 2004, multiplied by
(ii) The cost-of-living
adjustment determined under section (J) with a base year of 2004.
(G) Other
(1) General rule. -
There is hereby imposed (in addition to any other tax imposed by this
subtitle) a tax equal to twenty-five percent (25%) of:
(a) The Federal income
tax on lump-sum distributions.
(b) The Federal income
tax on parents' election to report child's interest and dividends.
(c) The recapture of Federal tax credits that were
previously claimed on
return.
(H) Tax for children under 18 with investment income
(1) General rule. -
There is hereby imposed a tax equal to twenty-five percent (25%) of:
(a) The Federal tax for children under the age of 18
with investment income.
(I) Averaging of farm
income
(1) General rule. - At
the election of an individual engaged in a farming business or
fishing business, the tax imposed in section 2 shall be equal
to twenty-five percent (25%) of:
(a) The Federal
averaging of farm income as determined in IRC section 1301. (J) Cost-
of-Living Adjustment
(1) In general.
The cost-of-living adjustment
for any calendar year is the percentage (if any) by which:
(a) The CPI for the preceding calendar year exceeds
(b) The CPI for the base
year.
(2) CPI for any calendar
year.
For purposes of
paragraph (1), the CPI for any calendar year is the average of the
Consumer Price Index as of the close of the twelve
(12) month period ending on August 31 of
such calendar year.
(3) Consumer Price Index
For purposes of
paragraph (2), the term "consumer price index" means the last
consumer
price index for all urban consumers published by the
department of labor. For purposes of the
preceding sentence, the revision of the consumer price index
which is most consistent with the
consumer price index for calendar year 1986 shall be used.
(4) Rounding.
(a)
In general.
If any increase
determined under paragraph (1) is not a multiple of $50, such increase
shall be rounded to the next lowest multiple of $50.
(b) In the case of a
married individual filing a separate return, subparagraph (a) shall be
applied by substituting "$25" for $50 each place it
appears.
(K) Credits against tax.
- For tax years beginning on or after January 1, 2001, a taxpayer
entitled to any of the following federal credits enacted prior
to January 1, 1996 shall be entitled to
a credit against the
(1) [Deleted by P.L.
2007, ch. 73, art. 7, section 5].
(2) Child and dependent
care credit;
(3) General business
credits;
(4) Credit for elderly
or the disabled;
(5) Credit for prior
year minimum tax;
(6) Mortgage interest
credit;
(7) Empowerment zone
employment credit;
(8) Qualified electric
vehicle credit.
(L) Credit Against Tax for Adoption. - For tax years beginning on or
after January 1,
2006, a taxpayer entitled to the federal adoption
credit shall be entitled to a credit against the
supervision of the
(M) The credit shall be twenty-five percent (25%) of
the aforementioned federal credits
provided there shall be no deduction based on any federal credits
enacted after January 1, 1996,
including the rate reduction credit provided by the federal
Economic Growth and Tax
Reconciliation Act of 2001 (EGTRRA). In no event shall the tax imposed under this section
be
reduced to less than zero. A taxpayer required to recapture
any of the above credits for federal tax
purposes shall determine the
prescribed in this subsection.
(N) Rhode
(1) In general.
A taxpayer entitled to a
federal earned income credit shall be allowed a
earned income credit equal to twenty-five percent (25%) of
the federal earned income credit.
Such credit shall not exceed the amount of the
(2) Refundable portion.
In the event the
under section (J) exceeds the amount of
credit shall be allowed.
(a) For purposes of
paragraph (2) refundable earned income credit means fifteen percent
(15%) of the amount by which the
income tax.
(O) The tax
administrator shall recalculate and submit necessary revisions to paragraphs
(A) through (J) to the
general assembly no later than February 1, 2010 and every three (3) years
thereafter for inclusion in the statute.
SECTION 16. Section 44-30-2.7 of the General Laws in Chapter
44-30 entitled "Personal
Income Tax" is hereby amended
to read as follows:
44-30-2.7. Capital
gains rates for assets held more than five (5) years. -- (a) All
capital assets purchased prior to January 1, 2002 and sold on
or after January 1, 2007, shall be
deemed to have a holding period beginning January 1, 2002.
For tax years beginning in 2007 and
ending prior to January 1, 2010, the capital gains rate for assets held more than
five (5) years shall
be as follows:
(i)
0.83% of the net capital gain as reported for federal income tax purposes under 26
U.S.C. section 1(h)(1)(a) and
26 U.S.C. section 1(h)(1)(b).
(ii) 1.67% of the net
capital gain as reported for federal income tax purposes under
26
U.S.C. section 1(h)(1)(c).
(iii) 2.08% of the net
capital gain as reported for federal income tax purposes under
26
U.S.C. section 1(h)(1)(d).
(iv) 2.33% of the net
capital gain as reported for federal income tax purposes under
26
U.S.C. section 1(h)(1)(e).
SECTION 17. Sections 1, 12, and 13 shall take effect on July 1, 2009. Section 2 shall take
effect on July 1, 2009 and shall apply to hospitals, as defined in Section 2, which are duly
licensed on July 1, 2009. The licensing fee imposed by Section 2 shall be in addition to the
inspection fee imposed by Section 23-17-38 and to any licensing fees previously imposed in
accordance with section 23-17-38.1. Section 3 shall take effect upon passage and apply to
provider tax assessment of gross patient revenues related to services provided after
June 30, 2009, but shall not apply to assessments of gross patient revenue due and payable
to the State for services provided prior to July 1, 2009. Section 10 shall take effect on
January 1, 2010. Section 15 thru 17 shall take effect upon passage and apply to tax years
beginning on or after January 1, 2010. The remainder of the article shall take effect upon passage.