Chapter 136
2010 -- S 2501
Enacted 06/25/10
A N A C T
RELATING TO
TAXATION -- POLITICAL ORGANIZATIONS
Introduced By: Senators Jabour, DiPalma, and Pichardo
Date Introduced: February 11, 2010
It is enacted by the
General Assembly as follows:
SECTION 1. Title 44 of the General Laws entitled
"TAXATION" is hereby amended by
adding thereto the following chapter:
CHAPTER
11.1
POLITICAL
ORGANIZATION TAX
44-11.1-1.
Definitions. – For the purpose of this chapter:
(1) “Political
organization” means a political organization as defined under section 527 of
the Internal Revenue Code;
(2) “Taxpayer” means
and includes any political organization subject to the provisions of
this chapter.
44-11.1-2.
Imposition of tax. – Each political
organization shall annually pay to the state
a tax equal to seven and one-half percent (7.5%) of
political organization taxable income, as
defined under section 527(c) of the Internal Revenue Code;
provided, that no tax shall be payable
or a tax return filed under this section unless the
political organization has at least one hundred
dollars ($100) or more of political organization taxable
income under section 527(c) of the
Internal Revenue Code.
44-11.1-3.
Filing of tax returns – Due date. – A tax
return in the form and containing
the information that the tax administrator may prescribe
shall be filed with the tax administrator
by the political organization:
(1) In case the
taxable year of the taxpayer is the calendar year, on or before March 15 in
the year following the close of the taxable year; and
(2) In case the
taxable year of the taxpayer is a fiscal year, on or before the fifteenth
(15th)
day of the third (3rd) month following the close of the
fiscal year.
44-11.1-4.
Extension of time for filing of returns. – The
tax administrator may grant
reasonable extensions of time for filing returns under rules and
regulations as he or she shall
prescribe.
44-11.1-5.
Determination and payment of tax due – Hearings and redeterminations.
– (a)
At the time of the filing of the return, the taxpayer
shall pay to the tax administrator the
amount of the tax as computed by it on the basis of its
political organization taxable income under
section 527 of the Internal Revenue Code or other provision
as applicable. As soon as possible
after the filing of the return, the tax administrator shall
determine the correct tax payable under
this chapter by the taxpayer, and if the tax determined
shall exceed the amount which the
taxpayer has paid at the time of filing its return, the tax
administrator shall mail to the taxpayer a
notice of the additional tax due indicating the basis on
which the tax was determined.
(b) If any taxpayer
is not satisfied with the amount of tax determined, the tax
administrator, upon being notified, in writing, within thirty (30)
days from the date of the mailing
of the notice, shall fix an early date at his or her
office when the taxpayer can be heard to show
cause why the tax should be changed, and after which the
tax administrator may redetermine the
amount of that tax.
(c) If it shall
appear subsequent to the mailing of any notice that the amount of the tax
was erroneously stated, the tax administrator shall mail
a corrected notice and fix a day when the
taxpayer can be heard.
(d) The additional
tax required to be paid by any taxpayer shall be due and payable within
thirty (30) days after the mailing of the notice or corrected
notice by the tax administrator.
44-11.1-6.
Interest on delinquency payments. – If any tax
imposed by this chapter is
not paid when due, a taxpayer shall be required to pay as
part of the tax interest on the tax at the
annual rate provided by section 44-1-7 from that time.
44-11.1-7.
Lien on real estate. – The amount of any tax,
penalty, and interest charge
imposed upon any political organization under the provisions
of this chapter shall, until collected,
constitute a lien upon the political organization’s real estate
located in this state, and this lien
shall take precedence over any other lien or encumbrance on
the real estate.
44-11.1-8.
Records, statements, and rules and regulations. – Each
taxpayer shall keep
records, render statements, make returns, and comply with
rules and regulations, not inconsistent
with law, as the tax administrator may from time to time
prescribe to carry into effect the
provisions of this chapter.
44-11.1-9. Returns
and statements required to show whether political organization is
liable. – The
tax administrator may, whenever in his or her judgment if it is necessary,
require
any political organization, by notice served upon it, to
make a return, render statements, or keep
records as the tax administrator deems sufficient to show
whether or not the political organization
is liable for any tax under this chapter.
44-11.1-10.
Supplemental returns – Additional tax or refund. – (a) Any taxpayer
which fails to include in its return any items of income or
assets or any other information required
by this chapter or by regulations prescribed in
pursuance of this chapter shall make a
supplemental return disclosing these facts. Any taxpayer whose
return to the collector of internal
revenue, or whose net income returned, shall be changed or
corrected by any official of the
sixty (60) days after receipt of a notification of the
final adjustment and determination of the
change or correction, make the supplemental return required
by this section.
(b) Upon the filing
of a supplemental return the tax administrator shall examine the return
and shall determine any additional tax or refund that may
be due and shall notify the taxpayer.
Any additional tax shall be paid within fifteen (15)
days after the notification together with
interest at the annual rate provided by section 44-1-7 from
the original due date of the return for
the taxable year to the date of payment of the additional
tax. Any refund shall be made by the tax
administrator together with interest at the annual rate provided by
section 44-1-7.1 from the date
of payment of the tax to the date of the refund.
44-11.1-11. Claims
for refund – Hearing upon denial. – (a) Any
taxpayer may file a
claim for refund with the tax administrator at any time
within three (3) years after the tax has
been paid, or in the case of a change or correction of its
taxable income by any official of the
United States government, within three (3) years after
receiving notice of the change or
correction. If the tax administrator determines that the tax has
been overpaid, he or she shall make
a refund with interest at the annual rate provided by
section 44-1-7.1 from the date of payment.
(b) Any taxpayer
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 decision, request a
hearing and the tax administrator shall, as soon as
practicable, set a time and place for the hearing
and shall so notify the applicant.
44-11.1-12.
Information confidential – Types of disclosure authorized--Penalties for
unauthorized disclosure. – (a) It is unlawful for any state official
or employee to divulge or to
make known to any person in any manner not provided by law
the amount or source of income,
profits, losses, expenditures, or any particular set forth or
disclosed in any return, or to permit any
return or copy or any book containing any abstract or
particulars to be seen or examined by any
person except as provided by law. It is unlawful for any
person to print or publish in any manner
not provided by law any return or any part or source of
income, profits, losses, or expenditures
appearing in any return.
(b) Any offense
against this provision is punishable by a fine not exceeding one thousand
dollars ($1,000) or by imprisonment not exceeding one year,
or both, at the discretion of the
court. If the offender is an officer or employee of the
state of
dismissed from office or discharged from employment; provided,
that the tax administrator may
authorize examination of the return by the tax officials
regularly in the employ of another state or
of the federal government if a reciprocal arrangement
exists.
44-11.1-13.
Tax administrator’s power to summon witnesses and evidence.
– The tax
administrator may summon any political organization, or officer,
agent, or employee of any
political organization, or any other person, to appear before
him or her and produce records and
documents at a time and place named in the summons and to give
testimony and to answer
interrogatories, under oath, respecting any matter which the tax
administrator deems pertinent or
material to the administration of this chapter.
44-11.1-14.
Service of summons. – The summons may be sent
by registered or certified
mail to the political organization, or to any officer,
agent, or employee of the political
organization, or to any other person, or may be left by any
authorized agent of the tax
administrator with the political organization, or with any officer,
agent, or employee of the
political organization, or any other person, or left at his or
her last and usual place of abode.
When the summons requires the production of records or
documents, it shall be sufficient if the
records and documents are described with reasonable
certainty.
44-11.1-15.
Enforcement of summons. – Whenever any person
or political organization
summoned under the provision of sections 44-11.1-13 and
44-11.1-14 neglects or refuses to obey
the summons or to give testimony or to answer
interrogatories as required, the tax administrator
may apply to the sixth division of the district court for
a citation against that person or political
organization as for a contempt. Any judge of the court may hear
the application and, if
satisfactory proof is made, shall issue a citation for the arrest
of the person, or of any officer of
the political organization, and upon the person or
officer being brought before the judge, he or she
shall proceed to a hearing of the case; and upon the
hearing the judge shall have power to make
an order that he or she deems proper. A party aggrieved
by an order of the court may appeal the
order to the supreme court in accordance with the
procedures contained in the rules of appellate
procedure of the supreme court.
44-11.1-16.
Determination of tax without return. – If any
political organization fails to
file a return at the time and as prescribed by law, the
tax administrator shall proceed to determine
the tax from any information he or she can obtain.
44-11.1-17. Pecuniary penalty for failure to file return or to pay tax
or for
negligence. – (a)
In the case of any failure to file a return within the time prescribed by law,
there
shall be added to the tax five percent (5%) if the
failure is for not more than one month, with an
additional five percent (5%) for each additional month or
fraction of a month during which the
failure continues, not exceeding twenty-five percent (25%) in
the aggregate, except that when a
return is filed after the time prescribed by law and it is
shown that the failure to file the return at
the prescribed time was due to reasonable cause and not
due to willful neglect, no addition to the
tax shall be made.
(b) In the case of
any failure to pay the tax as imposed by this chapter with the return on
or before the date prescribed by law (determined with
regard to any extension of time for
payment), 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 of a month during which the
failure continues, not exceeding twenty-five percent (25%) in
the aggregate, except that when the
failure is due to reasonable cause and not to willful
neglect, no addition to the tax shall made.
(c) In the case of
any failure to pay any amount in respect of any tax required to be shown
on a return, which is not shown, including an assessment
made as a result of mathematical error,
within thirty (30) days of the date of the notice and
demand, 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 of a month during which the failure
continues, not exceeding twenty-
five percent (25%) in the aggregate, except that when the
failure is due to reasonable cause and
not to willful neglect, no addition to the tax shall be
made.
(d) If any part of a
deficiency is due to negligence or intentional disregard of the Rhode
Island political organization tax law or rules or
regulations hereunder, but without intent to
defraud, five percent (5%) of that part of the deficiency
shall be added to the tax. This amount
shall be in lieu of any other additional amount imposed by
subsection (b) of this section.
44-11.1-18. Pecuniary penalty for fraud. – In case a false or
fraudulent return is made
with intent to evade any tax imposed by this chapter, the
tax administrator shall add to the tax
fifty percent (50%) of its amount.
44-11.1-19.
Collection of pecuniary penalties. – The amount
added to any tax under
sections 44-11.1-17 and 44-11.1-18 shall be collected as a
part of and at the same time and in the
same manner as the tax, unless the tax has been paid
before the discovery of the neglect, falsity,
or fraud, in which case the amount so added shall be collected
in the same manner as the tax.
44-11.1-20.
Examination of taxpayer’s records -- Witnesses. – The tax
administrator,
for the purpose of ascertaining the correctness of any
return or for the purpose of determining the
amount of any tax imposed by this chapter, may, by any of
his or her officers or employees
designated by him or her for that purpose, examine any books,
papers, records, or memoranda
bearing upon the matters required to be included in the
return, and may require the attendance of
the person executing the return or of any officer or
employee of any political organization, or the
attendance of any other person, and may examine him or her under
oath respecting any matter
which the tax administrator deems pertinent or material in
determining the liability of any
political organization to a tax imposed by this chapter.
44-11.1-21.
Violations by political organizations. – Whenever
any political
organization delivers or discloses or causes to be delivered or
disclosed to the tax administrator
any false or fraudulent return, account, or statement,
with intent to defeat or evade any tax
imposed under this chapter, or being summoned to appear to
testify or to appear and produce
books as required under this chapter, neglects to appear or
to produce books, the corporation is
guilty of a felony and upon conviction shall be fined not
exceeding ten thousand dollars
($10,000).
44-11.1-22.
Violations by individuals. – Whenever any
person delivers or discloses or
causes to be delivered or disclosed to the tax administrator
any false or fraudulent return, account,
or statement, with intent to defeat or evade any tax
imposed under this chapter, or being
summoned to appear to testify or to appear and produce books
as required under this chapter,
neglects to appear or to produce books, the person is guilty
of a felony and upon conviction
thereof shall be fined not exceeding ten thousand dollars
($10,000), or be imprisoned not
exceeding one year, or both.
44-11.1-23.
Criminal penalty for failure to file return. – Any taxpayer, or any officer
or agent of the taxpayer, who willfully fails to file
any return or statement, including a
supplemental return, required to be made under the provisions of
this chapter within the time
fixed or extended is guilty of a felony and upon conviction
shall be fined not exceeding ten
thousand dollars ($10,000), or be imprisoned not exceeding one
year, or both.
44-11.1-24.
Appeals. – Appeals from administrative orders
or decision made pursuant to
any provisions of this chapter shall be to the sixth
division district court pursuant to chapter 8 of
title 8. The taxpayer’s right to appeal shall be expressly
made conditional upon prepayment of all
taxes, interest, and penalties unless the taxpayer 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
taxpayer is entitled to a refund, the taxpayer shall also be
paid interest on the amount at the rate
provided in section 44-1-7.1
44-11.1-25.
General collection powers. – The tax
administrator shall receive and collect
any tax imposed under this chapter in the same manner and
with the same powers as are
prescribed for and given to collectors of taxes by chapters 7
through 9 of this title.
44-11.1-26.
Collection by writ of execution. – If any tax
or penalty imposed by this
chapter is not paid within thirty (30) days after the tax or
penalty shall become due and payable,
the tax administrator, in addition to any other powers
provided by law, may petition the sixth
division of the district court for a writ of execution,
setting forth the nonpayment of the tax or
penalty. The court shall appoint a time for a hearing and
shall cause a reasonable notice to be
given to the adverse party, and at the time and place of
the return of the notice shall summarily
proceed to hear the parties. If upon the hearing it shall
appear that the tax or penalty is unpaid, the
court shall issue an execution for the collection of the
tax or penalty, which shall run to the
sheriffs, or their deputies, of the several counties of this
state, and in which the officer making
service of the execution shall be commanded to levy upon the
property of the political
organization as may be taken on execution, and the officer charged
with the service of the
execution shall serve the execution as commanded, and shall
sell the property seized as property
is sold when taken on execution in actions at law, or
the court shall take any other action as it
may deem proper to enforce the payment of the tax by the
appointment of a receiver of the
property of the political organizational or otherwise. A party
aggrieved by a final order of the
court may seek review of the order in the supreme court by
writ of certiorari in accordance with
the procedures contained in section 42-35-16.
44-11.1-27.
Tax as debt to state. – Any tax imposed under
the provisions of this chapter,
together with all increases, penalties, charges, and interest,
shall also become, from the time the
same are due and payable, a debt due to the state of
liable for the payment of the tax.
44-11.1-28.
Severability. – If any provision of this
chapter or the application of this
chapter to any corporation or circumstances is held invalid,
the remainder of this chapter and the
application of the provisions to the other corporations or
circumstances shall not be affected.
SECTION
2. This act shall take effect upon
passage.
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LC01024
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