ARTICLE 19 AS AMENDED
RELATING TO
TAXES AND REVENUES
SECTION
1. Chapter 7-12 of the General Laws entitled "Partnerships" is hereby
amended by adding thereto
the following section:
7-12-60. Filing of
returns with the tax administrator -- Annual charge. – (a) For tax
years beginning on or after January 1, 2012 a limited
liability partnership registered under section
7-12-56, shall file a return in the form and
containing the information as prescribed by the tax
administrator as follows:
(1) If the fiscal
year of the limited liability partnership is the calendar year, on or before
the fifteenth (15th) day of April in the year
following the close of the fiscal year; and
(2) If the fiscal
year of the limited liability partnership is not a calendar year, on or before
the fifteenth (15th) day of the fourth (4th) month
following the close of the fiscal year.
(b) An annual charge,
equal to the minimum tax imposed upon a corporation under
subsection 44-11-2(e), shall be due on the filing of
the limited liability partnership’s return filed
with the tax administrator and shall be paid to the
division of taxation.
(c) The annual charge
is delinquent if not paid by the due date for the filing of the return
and an addition of one hundred dollars ($100) to the
charge is then due.
SECTION
2. Chapter 7-13 of the General Laws entitled "Limited Partnerships"
is hereby
amended by adding thereto
the following section:
7-13-69. Filing of
returns with the tax administrator -- Annual charge. – (a) For tax
years beginning on or after January 1, 2012 a limited
partnership certified under this chapter shall
file a return in the form and containing the
information as prescribed by the tax administrator as
follows:
(1) If the fiscal
year of the limited partnership is the calendar year, on or before the
fifteenth (15th) day of April in the year following
the close of the fiscal year; and
(2) If the fiscal
year of the limited partnership is not a calendar year, on or before the
fifteenth (15th) day of the fourth (4th) month
following the close of the fiscal year.
(b) An annual charge,
equal to the minimum tax imposed upon a corporation under
subsection 44-11-2(e), shall be due on the filing of
the limited partnership’s return filed with the
tax administrator and shall be paid to the division of
taxation.
(c) The annual charge
is delinquent if not paid by the due date for the filing of the return
and an addition of one hundred dollars ($100) to the
charge is then due.
SECTION
3. Section 7-16-67 of the General Laws in Chapter 7-16 entitled "The Rhode
Island Limited Liability
Company Act" is hereby amended to read as follows:
7-16-67. Filing of
returns with the tax administrator -- annual charge. -- (a) A return
in the form and containing the information as the tax
administrator may prescribe shall be filed
with the tax administrator by the limited liability
company:
(1) In case the fiscal
year of the limited liability company is the calendar year, on or
before the fifteenth day of March in the year
following the close of the fiscal year; and
(2) In case the fiscal
year of the limited liability company is not a calendar year, on or
before the fifteenth day of the third month following
the close of the fiscal year.
(b) An annual charge
shall be due on the filing of the limited liability company's return
filed with the tax administrator and shall be paid to
the Division of Taxation as follows:
(1) If the limited
liability company is treated as a corporation for purposes of federal
income taxation, it shall pay the taxes as provided in
chapters 11 and 12 of this title 44; or
(2) If the limited
liability company is not treated as a partnership corporation
for
purposes of federal income taxation, it shall pay a
fee in an amount equal to the minimum tax
imposed upon a corporation under section 44-11-2(e). The
due date for a limited liability
company that is not treated as a corporation for
purposes of federal income taxation shall be on or
before the fifteenth (15th) day of the fourth (4th)
month following the close of the fiscal year.
(c) The annual charge
is delinquent if not paid by the due date for the filing of the return
and an addition of one hundred dollars ($100.00) to
the charge is then due.
SECTION
4. Chapter 44-11 of the General Laws entitled "Business Corporation
Tax" is
hereby amended by adding
thereto the following section:
44-11-45. Combined
reporting study. – (a) For the purpose of this section:
(1) “Common
ownership” means more than fifty percent (50%) of the voting control of
each member of the group is directly or indirectly
owned by a common owner or owners, either
corporate or non-corporate, whether or not owner or
owners are members of the combined group.
(2) “Member” means a
corporation included in a unitary business.
(3) “Unitary
business” means the activities of a group of two (2) or more corporations
under common ownership that are sufficiently
interdependent, integrated or interrelated through
their activities so as to provide mutual benefit and
produce a significant sharing or exchange of
value among them or a significant flow of value
between the separate parts. The term unitary
business shall be construed to the broadest extent
permitted under the
(4) “
(b) Combined
reporting.
(1) As part of its
tax return for a taxable year beginning after December 31, 2010 but
before January 1, 2013, each corporation which is part
of an unitary business must file a report, in
a manner prescribed by the tax administrator, for the
combined group containing the combined
net income of the combined group. The use of a
combined report does not disregard the separate
identities of the members of the combined group. The
report shall include, at minimum, for each
taxable year the following:
(i)
The difference in tax owed as a result of filing a combined report compared to
the tax
owed under the current filing requirements;
(ii) The difference
in tax owed as a result of using the single sales factor apportionment
method under this paragraph as compared to the tax
owed using the current three (3) factor
apportionment method under section 44-11-14;
(iii) Volume of sales
in the state and worldwide; and
(iv) Taxable income
in the state and worldwide.
(2) The combined
reporting requirement required pursuant to this section shall not
include any persons that engage in activities
enumerated in sections 44-13-4, 44-14-3, 44-14-4 or
44-17-1, whether within or outside this state. Neither
the income or loss nor the apportionment
factors of such a person shall be included, directly
or indirectly, in the combined report.
(3) Members of a
combined group shall exclude as a member and disregard the income
and apportionment factors of any corporation
incorporated in a foreign jurisdiction (a “foreign
corporation”) if the average of its property, payroll
and sales factors outside the
eighty percent (80%) or more. If a foreign corporation
is includible as a member in the combined
group, to the extent that such foreign corporation’s
income is subject to the provisions of a federal
income tax treaty, such income is not includible in
the combined group net income. Such member
shall also not include in the combined report any
expenses or apportionment factors attributable
to income that is subject to the provisions of a
federal income tax treaty. For purposes of this
chapter, “federal income tax treaty” means a
comprehensive income tax treaty between the
United States and a foreign jurisdiction, other than a
foreign jurisdiction which the organization
for economic co-operation and development has determined
has not committed to the
internationally agreed tax standard, or has committed
to the international agreed tax standard but
has not yet substantially implemented that standard,
as identified in the then-current organization
for economic co-operation and development progress
report.
(c) Any corporation
which is required to file a report under this section which fails to file a
timely report or which files a false report shall be
assessed a penalty not to exceed ten thousand
dollars ($10,000). The penalty may be waived for good
cause shown for failure to timely file.
(d) The tax
administrator shall on or before March 15, 2014, based on the information
provided in income tax returns and the data submitted
under this section, submit a report to the
chairpersons of the house finance committee and senate
finance committee, and the house fiscal
advisor and the senate fiscal advisor analyzing the
policy and fiscal ramifications of changing the
business corporation tax statute to a combined method
of reporting.
SECTION
5. Section 42-64-10 of the General Laws in Chapter 42-64 entitled "Rhode
Island Economic Development
Corporation" is hereby amended to read as follows:
42-64-10. Findings
of the corporation. -- (a) Except as specifically provided in this
chapter, the
undertake the acquisition, construction,
reconstruction, rehabilitation, development, or
improvement of a project, nor enter into a contract
for any undertaking or for the financing of this
undertaking, unless it first:
(1) Finds:
(i)
That the acquisition or construction and operation of the project will prevent,
eliminate, or reduce unemployment or underemployment
in the state and will generally benefit
economic development of the state;
(ii) That adequate
provision has been made or will be made for the payment of the cost
of the acquisition, construction, operation, and
maintenance and upkeep of the project;
(iii) That, with
respect to real property, the plans and specifications assure adequate
light, air, sanitation, and fire protection;
(iv) That the project
is in conformity with the applicable provisions of chapter 23 of title
46; and
(v) That the project is
in conformity with the applicable provisions of the state guide
plan; and
(2) Prepares and
publicly releases an analysis of the impact the proposed project will or
may have on the State. The analysis shall be supported
by appropriate data and documentation
and shall consider, but not be limited to, the
following factors:
(i)
The impact on the industry or industries in which the completed project will be
involved;
(ii) State fiscal
matters, including the state budget (revenues and expenses);
(iii) The financial
exposure of the taxpayers of the state under the plans for the proposed
project and negative foreseeable contingencies that
may arise therefrom;
(iv) The approximate
number of full-time, part-time, temporary, seasonal, and/or
permanent jobs projected to be created, construction
and non-construction;
(v) Identification of
geographic sources of the staffing for identified jobs;
(vi) The projected
duration of the identified construction jobs;
(vii) The approximate
wage rates for each category of the identified jobs;
(viii) The types of
fringe benefits to be provided with the identified jobs, including
healthcare insurance and any retirement benefits;
(ix) The projected
fiscal impact on increased personal income taxes to the state of Rhode
Island; and
(x) The description of
any plan or process intended to stimulate hiring from the host
community, training of employees or potential
employees and outreach to minority job applicants
and minority businesses.
(b) With respect to the
uses described in section 42-64-3(18), (23), (30), (35), and (36)
and with respect to projects situated on federal
lands, the corporation shall not be required to
make the findings specified in subsection (a)(1)(i) of this section.
(c) Except for the
findings specified in subsections (a)(1)(iv) and (a)(1)(v) of this
section, the findings of the corporation made pursuant
to this section shall be binding and
conclusive for all purposes. Upon adoption by the
corporation, any such findings shall be
transmitted to the division of taxation, and shall be
made available to the public for inspection by
any person, and shall be published by the tax
administrator on the tax division website.
(d) The corporation
shall monitor every impact analysis it completes through the
duration of any project incentives. Such monitoring
shall include annual reports which shall be
transmitted to the division of taxation, and shall be
available to the public for inspection by any
person, and shall be published by the tax
administrator on the tax division website. The annual
reports on the impact analysis shall include:
(1) Actual versus
projected impact for all considered factors; and
(2) Verification of all
commitments made in consideration of state incentives or aid.
(e) Upon its
preparation and release of the analysis required by subsection (a)(2) of this
section, the corporation shall provide copies of that
analysis to the chairpersons of the house and
senate finance committees, the house and senate fiscal
advisors, the department of labor and
training and the division of taxation. Any such
analysis shall be available to the public for
inspection by any person and shall be published by the
tax administrator on the tax division
website. Annually thereafter, the department of labor
and training shall certify to the chairpersons
of the house and senate finance committees, the house
and senate fiscal advisors, the corporation
and the division of taxation that: (i) the actual number of new full-time jobs with benefits
created
by the project, not including construction jobs, is on
target to meet or exceed the estimated
number of new jobs identified in the analysis above,
and (ii) the actual number of existing full-
time jobs with benefits has not declined. This
certification shall no longer be required two (2) tax
years after the terms and conditions of both the
general assembly's joint resolution of approval
required by section 42-64-20.1 of this chapter and any
agreement between the corporation and the
project lessee have been satisfied. For purposes of
this section, "full-time jobs with benefits"
means jobs that require working a minimum of thirty
(30) hours per week within the state, with a
median wage that exceeds by five percent (5%) the
median annual wage for full-time jobs in
insurance plus other benefits typical of companies
within the project lessee's industry. The
department of labor and training shall also certify
annually to the chairpersons of the house and
senate finance committees, the house and senate fiscal
advisors, and the division of taxation that
jobs created by the project are "new jobs"
in the state of
employees of the project are in addition to, and
without a reduction in the number of, those
employees of the project lessee currently employed in
another facility of the project lessee in
lessee as the result of a merger or acquisition of a
company already located in
certifications made by the department of labor and
training shall be available to the public for
inspection by any person and shall be published by the
tax administrator on the tax division
website.
(f) The corporation,
with the assistance of the taxpayer, the department of labor and
training, the department of human services and the
division of taxation shall provide annually an
analysis of whether any of the employees of the
project lessee has received RIte Care or RIte
Share benefits and the impact such benefits or
assistance may have on the state budget. Any such
analysis shall be available to the public for
inspection by any person and shall be published by the
tax administrator on the tax division website.
Notwithstanding any other provision of law or rule
or regulation, the division of taxation, the
department of labor and training and the department of
human services are authorized to present, review and
discuss lessee-specific tax or employment
information or data with the Rhode Island Economic
Development Corporation (RIEDC), the
chairpersons of the house and senate finance
committees, and/or the house and senate fiscal
advisors for the purpose of verification and
compliance with this tax credit reporting requirement.
(g) The corporation and
the project lessee shall agree that, if at any time prior to pay
back of the amount of the sales tax exemption through
new income tax collections over three (3)
years, not including construction job income taxes,
the project lessee will be unable to continue
the project, or otherwise defaults on its obligations
to the corporation, the project lessee shall be
liable to the state for all the sales tax benefits
granted to the project plus interest, as determined in
Rhode Island General Law section 44-1-7, calculated
from the date the project lessee received the
sales tax benefits.
(h) Any agreements or
contracts entered into by the corporation and the project lessee
shall be sent to the division of taxation and be
available to the public for inspection by any person
and shall be published by the tax administrator on the
tax division website.
(i)
By August 15th of each year the project lessee shall report the source and
amount of
any bonds, grants, loans, loan guarantees, matching
funds or tax credits received from any state
governmental entity, state agency or public agency as
defined in section 37-2-7 received during
the previous state fiscal year. This annual report
shall be sent to the division of taxation and be
available to the public for inspection by any person
and shall be published by the tax
administrator on the tax division website.
(j) By August 15th of
each year the division of taxation shall report the name, address,
and amount of sales tax benefit each project lessee
received during the previous state fiscal year
to the corporation, the chairpersons of the house and
senate finance committees, the house and
senate fiscal advisors, the department of labor and
training and the division of taxation. This
report shall be available to the public for inspection
by any person and shall be published by the
tax administrator on the tax division website.
(k) On or before
September 1, 2011, and every September 1 thereafter, the project lessee
shall file an annual report with the tax
administrator. Said report shall contain each full-time
equivalent, part-time or seasonal 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
6. Section 44-63-3 of the General Laws in Chapter 44-63 entitled
"Incentives
for Innovation and
Growth" is hereby amended to read as follows:
44-63-3.
Eligibility for credit. [Repealed effective December 31, 2016 pursuant to
section 44-63-5.] -- (a) Only companies with business primarily in those
industries or trades,
identified by the corporation upon advisory resolution
of the Rhode Island Science and
Technology Advisory Council as "Innovation
Industries" producing traded good or services, shall
be eligible for the Incentives for Innovation and
Growth as provided in sections 44-63-1 and 44-
63-2. An eligible company must make application to the
corporation prior to claiming the credit,
and the corporation shall be authorized to approve no
more than one million dollars ($1,000,000)
in credit applications in any two (2) calendar year
period.
(b) The corporation
shall approve no application under this chapter until it has first
prepared and publicly released an analysis of the
impact the proposed investment will or may
have on the State. The analysis shall be supported by
appropriate data and documentation and
shall consider, but not be limited to, the following
factors:
(i)
The impact on the industry or industries in which the applicant will be
involved;
(ii) State fiscal
matters, including the state budget (revenues and expenses);
(iii) The financial
exposure of the taxpayers of the state under the plans for the proposed
investment and negative foreseeable contingencies that
may arise therefrom;
(iv) The approximate
number of full-time, part-time, temporary, seasonal and/or
permanent jobs projected to be created, construction
and non-construction;
(v) Identification of
geographic sources of the staffing for identified jobs;
(vi) The projected
duration of the identified construction jobs;
(vii) The approximate
wage rates for each category of the identified jobs;
(viii) The types of
fringe benefits to be provided with the identified jobs, including
healthcare insurance and any retirement benefits;
(ix) The projected
fiscal impact on increased personal income taxes to the state of Rhode
Island; and
(x) The description of
any plan or process intended to stimulate hiring from the host
community, training of employees or potential
employees, and outreach to minority job
applicants and minority businesses.
(c) The corporation
shall monitor every impact analysis it completes through the
duration of any approved tax credit and for two (2)
years after the taxpayer no longer receives the
credit. Such monitoring shall include annual reports
which shall be transmitted to the division of
taxation, and shall be available to the public for
inspection by any person, and shall be published
by the tax administrator on the tax division website.
The annual reports on the impact analysis
shall include:
(1) Actual versus
projected impact for all considered factors; and
(2) Verification of all
commitments made in consideration of state incentives or aid.
(d) Upon its
preparation and release of the analysis required by subsection (b) of this
section, the corporation shall provide copies of that
analysis to the chairpersons of the house and
senate finance committees, the house and senate fiscal
advisors, the department of labor and
training and the division of taxation. Any such
analysis shall be available to the public for
inspection by any person and shall by published by the
tax administrator on the tax division
website. Annually thereafter, through and including
the second tax year after any taxpayer has
applied for and received a tax credit pursuant to this
chapter, the department of labor and training
shall certify to the chairpersons of the house and senate
finance committees, the house and senate
fiscal advisors, the corporation and the division of
taxation that: (i) the actual number of new full-
time jobs with benefits created by the tax credit, not
including construction jobs, is on target to
meet or exceed the estimated number of new jobs
identified in the analysis above; and (ii) the
actual number of existing full-time jobs with benefits
has not declined. For purposes of this
section, "full-time jobs with benefits"
means jobs that require working a minimum of thirty (30)
hours per week within the state, with a median wage
that exceeds by five percent (5%) the
median annual wage for full-time jobs in
benefit package that includes healthcare insurance
plus other benefits typical of companies within
the taxpayer's industry. The department of labor and
training shall also certify annually to the
chairpersons of the house and senate finance
committees, the house and senate fiscal advisors,
and the division of taxation that jobs created by the
tax credit are "new jobs" in the state of Rhode
Island, meaning that the employees of the project are
in addition to, and without a reduction of,
those employees of the taxpayer currently employed in
another facility of the taxpayer in
result of a merger or acquisition of a company already
located in
made by the department of labor and training shall be
available to the public for inspection by any
person and shall be published by the tax administrator
on the tax division website.
(e) The corporation,
with the assistance of the taxpayer, the department of labor and
training, the department of human services and the
division of taxation shall provide annually an
analysis of whether any of the employees of the
taxpayer has received RIte Care or RIte Share
benefits and the impact such benefits or assistance
may have on the state budget. This analysis
shall be available to the public for inspection by any
person and shall be published by the tax
administrator on the tax division website.
Notwithstanding any other provision of law or rule or
regulation, the division of taxation, the department
of labor and training and the department of
human services are authorized to present, review and
discuss taxpayer-specific tax or
employment information or data with the Rhode Island
Economic Development Corporation
(RIEDC), the chairpersons of the house and senate
finance committees, and/or the house and
senate fiscal advisors for the purpose of verification
and compliance with this tax credit reporting
requirement.
(f) Any agreements or contracts
entered into by the corporation and the taxpayer shall be
sent to the division of taxation and be available to
the public for inspection by any person and
shall be published by the tax administrator on the tax
division website.
(g) By August 15th of
each year the taxpayer shall report the source and amount of any
bonds, grants, loans, loan guarantees, matching funds
or tax credits received from any state
governmental entity, state agency or public agency as
defined in section 37-2-7 received during
the previous state fiscal year. This annual report
shall be sent to the division of taxation and be
available to the public for inspection by any person
and shall be published by the tax
administrator on the tax division website.
(h) By August 15th of
each year the division of taxation shall report the name, address,
and amount of tax credit received for each taxpayer
during the previous state fiscal year to the
corporation, the chairpersons of the house and senate
finance committees, the house and senate
fiscal advisors, the department of labor and training
and the division of taxation. This report shall
be available to the public for inspection by any
person and shall be published by the tax
administrator on the tax division website.
(i)
On or before September 1, 2011, and every September 1 thereafter, the project
lessee
shall file an annual report with the tax
administrator. Said report shall contain each full-time
equivalent, part-time or seasonal 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
7. Section 42-64.3-6.1 of the General Laws in Chapter 42-64.3 entitled
"Distressed Areas
Economic Revitalization Act" is hereby amended to read as follows:
42-64.3-6.1.
Impact analysis and periodic reporting. -- (a) The council shall not
certify
any applicant as a qualified business under subsection
42-64.3-3(4) of this chapter until it has first
prepared and publicly released an analysis of the
impact the proposed investment will or may
have on the state. The analysis shall be supported by appropriate
data and documentation and
shall consider, but not be limited to, the following
factors:
(i)
The impact on the industry or industries in which the applicant will be
involved;
(ii) State fiscal
matters, including the state budget (revenues and expenses);
(iii) The financial
exposure of the taxpayers of the state under the plans for the proposed
investment and negative foreseeable contingencies that
may arise therefrom;
(iv) The approximate
number of full-time, part-time, temporary, seasonal and/or
permanent jobs projected to be created, construction
and non-construction;
(v) Identification of
geographic sources of the staffing for identified jobs;
(vi) The projected
duration of the identified construction jobs;
(vii) The approximate
wage rates for each category of the identified jobs;
(viii) The types of
fringe benefits to be provided with the identified jobs, including
healthcare insurance and any retirement benefits;
(ix) The projected fiscal
impact on increased personal income taxes to the state of Rhode
Island; and
(x) The description of
any plan or process intended to stimulate hiring from the host
community, training of employees or potential
employees, and outreach to minority job
applicants and minority businesses.
(b) The council shall
monitor every impact analysis it completes through the duration of
any approved tax credit. Such monitoring shall include
annual reports made available to the
public on the:
(1) Actual versus
projected impact for all considered factors; and
(2) Verification of all
commitments made in consideration of state incentives or aid.
(c) Upon its
preparation and release of the analysis required by subsection (b) of this
section, the council shall provide copies of that
analysis to the chairpersons of the house and
senate finance committees, the house and senate fiscal
advisors, the department of labor and
training and the division of taxation. Any such
analysis shall be available to the public for
inspection by any person and shall by published by the
tax administrator on the tax division
website. Annually thereafter, through and including
the second tax year after any taxpayer has
applied for and received a tax credit pursuant to this
chapter, the department of labor and training
shall certify to the chairpersons of the house and
senate finance committees, the house and senate
fiscal advisors, the corporation and the division of taxation
that: (i) the actual number of new full-
time jobs with benefits created by the tax credit, not
including construction jobs, is on target to
meet or exceed the estimated number of new jobs
identified in the analysis above; and (ii) the
actual number of existing full-time jobs with benefits
has not declined. For purposes of this
section, "full-time jobs with benefits"
means jobs that require working a minimum of thirty (30)
hours per week within the state, with a median wage
that exceeds by five percent (5%) the
median annual wage for full-time jobs in
benefit package that includes healthcare insurance
plus other benefits typical of companies within
the taxpayer's industry. The department of labor and
training shall also certify annually to the
house and senate fiscal committee chairs, the house
and senate fiscal advisors, and the division of
taxation that jobs created by the tax credit are
"new jobs" in the state of
that the employees of the project are in addition to,
and without a reduction of, those employees
of the taxpayer currently employed in
taxpayer in
acquisition of a company already located in
department of labor and training shall be available to
the public for inspection by any person and
shall be published by the tax administrator on the tax
division website.
(d) The council, with
the assistance of the taxpayer, the department of labor and training,
the department of human services and the division of
taxation shall provide annually an analysis
of whether any of the employees of the taxpayer has
received RIte Care or RIte
Share benefits
and the impact such benefits or assistance may have on
the state budget. This analysis shall be
available to the public for inspection by any person
and shall be published by the tax
administrator on the tax division website.
Notwithstanding any other provision of law or rule or
regulation, the division of taxation, the department
of labor and training and the department of
human services are authorized to present, review and
discuss taxpayer-specific tax or
employment information or data with the council, the
chairpersons of the house and senate
finance committees, and/or the house and senate fiscal
advisors for the purpose of verification
and compliance with this tax credit reporting
requirement.
(e) Any agreements or
contracts entered into by the council and the taxpayer shall be
sent to the division of taxation and be available to
the public for inspection by any person and
shall be published by the tax administrator on the tax
division website.
(f) By August 15th of
each year the taxpayer shall report the source and amount of any
bonds, grants, loans, loan guarantees, matching funds
or tax credits received from any state
governmental entity, state agency or public agency as
defined in section 37-2-7 received during
the previous state fiscal year. This annual report
shall be sent to the division of taxation and be
available to the public for inspection by any person
and shall be published by the tax
administrator on the tax division website.
(g) By August 15th of
each year the division of taxation shall report the name, address,
and amount of tax credit received for each taxpayer
during the previous state fiscal year to the
council, the chairpersons of the house and senate
finance committees, the house and senate fiscal
advisors, the department of labor and training and the
division of taxation. This report shall be
available to the public for inspection by any person
and shall be published by the tax
administrator on the tax division website.
(h) On or before
September 1, 2011, and every September 1 thereafter, the project lessee
shall file an annual report with the tax
administrator. Said report shall contain each full-time
equivalent, part-time or seasonal 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
8. Section 44-31.2-6.1 of the General Laws in Chapter 44-31.2 entitled
"Motion Picture
Production Tax Credits" is hereby amended to read as follows:
44-31.2-6.1. Impact
analysis and periodic reporting. -- (a) The film office shall not
certify or approve any application under section
44-31.2-6 of this chapter until it has first
prepared and publicly released an analysis of the
impact the proposed investment will or may
have on the state. The analysis shall be supported by
appropriate data and documentation and
shall consider, but not be limited to, the following
factors:
(i)
The impact on the industry or industries in which the applicant will be
involved;
(ii) State fiscal
matters, including the state budget (revenues and expenses);
(iii) The financial
exposure of the taxpayers of the state under the plans for the proposed
investment and negative foreseeable contingencies that
may arise therefrom;
(iv) The approximate
number of full-time, part-time, temporary, seasonal and/or
permanent jobs projected to be created, construction
and non-construction;
(v) Identification of
geographic sources of the staffing for identified jobs;
(vi) The projected
duration of the identified construction jobs;
(vii) The approximate
wage rates for each category of the identified jobs;
(viii) The types of
fringe benefits to be provided with the identified jobs, including
healthcare insurance and any retirement benefits;
(ix) The projected
fiscal impact on increased personal income taxes to the state of Rhode
Island; and
(x) The description of
any plan or process intended to stimulate hiring from the host
community, training of employees or potential
employees, and outreach to minority job
applicants and minority businesses.
(b) The film office
shall monitor every impact analysis it completes through the duration
of any approved tax credit. Such monitoring shall
include annual reports made available to the
public on the:
(1) Actual versus
projected impact for all considered factors; and
(2) Verification of all
commitments made in consideration of state incentives or aid.
(c) Upon its
preparation and release of the analysis required by subsection (b) of this
section, the film office shall provide copies of that
analysis to the chairpersons of the house and
senate finance committees, the house and senate fiscal
advisors, the department of labor and
training and the division of taxation. Any such
analysis shall be available to the public for
inspection by any person and shall by published by the
tax administrator on the tax division
website. Annually thereafter, through and including
the second tax year after any taxpayer has
applied for and received a tax credit pursuant to this
chapter, the department of labor and training
shall certify to the chairpersons of the house and
senate finance committees, the house and senate
fiscal advisors, the corporation and the division of
taxation that: (i) the actual number of new full-
time jobs with benefits created by the state-certified
production, not including construction jobs,
is on target to meet or exceed the estimated number of
new jobs identified in the analysis above,
and (ii) the actual number of existing full-time jobs
with benefits has not declined. For purposes
of this section, "full-time jobs with
benefits" means jobs that require working a minimum of thirty
(30) hours per week within the state, with a median
wage that exceeds by five percent (5%) the
median annual wage for full-time jobs in
benefit package that includes healthcare insurance
plus other benefits typical of companies within
the motion picture industry. The department of labor
and training shall also certify annually to the
house and senate fiscal committee chairs, the house
and senate fiscal advisors, and the division of
taxation that jobs created by the state-certified
production are "new jobs" in the state of Rhode
Island, meaning that the employees of the motion
picture production company are in addition to,
and without a reduction of, those employees of the
motion picture production company currently
employed in
production company in
company as the result of a merger or acquisition of a
company already located in
The certifications made by the department of labor and
training shall be available to the public for
inspection by any person and shall be published by the
tax administrator on the tax division
website.
(d) The film office,
with the assistance of the motion picture production company, the
department of labor and training, the department of
human services and the division of taxation
shall provide annually an analysis of whether any of
the employees of the motion picture
production company has received RIte
Care or RIte Share benefits and the impact such
benefits
or assistance may have on the state budget. This
analysis shall be available to the public for
inspection by any person and shall be published by the
tax administrator on the tax division
website. Notwithstanding any other provision of law or
rule or regulation, the division of
taxation, the department of labor and training and the
department of human services are
authorized to present, review and discuss
project-specific tax or employment information or data
with the film office, the chairpersons of the house
and senate finance committees, and/or the
house and senate fiscal advisors for the purpose of
verification and compliance with this tax
credit reporting requirement.
(e) Any agreements or
contracts entered into by the film office and the motion picture
production company shall be sent to the division of
taxation and be available to the public for
inspection by any person and shall be published by the
tax administrator on the tax division
website.
(f) By August 15th of
each year the motion picture production company shall report the
source and amount of any bonds, grants, loans, loan
guarantees, matching funds or tax credits
received from any state governmental entity, state
agency or public agency as defined in section
37-2-7 received during the previous state fiscal year.
This annual report shall be sent to the
division of taxation and be available to the public
for inspection by any person and shall be
published by the tax administrator on the tax division
website.
(g) By August 15th of
each year the division of taxation shall report the name, address,
and amount of tax credit received for each motion
picture production company during the
previous state fiscal year to the film office, the
chairpersons of the house and senate finance
committees, the house and senate fiscal advisors, the
department of labor and training and the
division of taxation. This report shall be available
to the public for inspection by any person and
shall be published by the tax administrator on the tax
division website.
(h) On or before
September 1, 2011, and every September 1 thereafter, the project lessee
shall file an annual report with the tax
administrator. Said report shall contain each full-time
equivalent, part-time or seasonal 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
9. Section 42-142-5 of the General Laws in Chapter 42-142 entitled
"Department of
Revenue" is hereby repealed.
42-142-5.
Annual unified economic development budget report. -- (a) The
director of
the department of revenue shall, not later than
October 15 of each state fiscal year, compile and
publish, in printed and electronic form, including on
the Internet, an annual unified economic
development budget report which shall provide the
following comprehensive information
regarding the costs and benefits of all tax credits or
other tax benefits conferred pursuant to
sections 42-64-10, 44-63-3, 42-64.5-5, 42-64.3-6.1,
42-64.9-6.2 and 44-31.2-6.1 during the
preceding fiscal year:
(1) The name of each
recipient of any such tax credit or other tax benefit; the dollar
amount of each such tax credit or other tax benefit;
and summaries of the number of full-time and
part-time jobs created or retained, employee benefits
provided and the degree to which job
creation and retention, wage and benefit goals and
requirements of recipient and related
corporations, if any, have been met. The report shall
include aggregate dollar amounts for each
category of tax credit or other tax benefit and for
each geographical area within the state; the
number of recipients within each category of tax
credit or other tax benefit; the number of full-
time and part-time jobs created or retained, the
employee benefits provided; and the degree to
which job creation and retention, wage and benefit
rate goals and requirements have been met
within each category of tax credit or other tax
benefit; and
(2) The dollar
amounts of all such tax credits and other tax benefits by each approving
authority pursuant to sections 42-64-10, 44-63-3,
42-64.5-5, 42-64.3-6.1, 42-64.9-6.2 and 44-
31.2-6.1, together with the cost to the state and to
the approving agency; the value of the tax
credit or other tax benefits to each recipient
thereof; and summaries of the number of full-time
and part-time jobs created or retained, employee
benefits provided, and the degree to which job
creation and retention, wage and benefit rate goals
and requirements of the recipients and related
corporations, if any, have been met.
(b) The director of
the department of revenue shall provide to the general assembly, as
part of the annual budget request of the governor, and
shall make available to the public via the
Internet, a comprehensive presentation of the costs of
all such tax credits and other tax benefits to
the state during the preceding fiscal year, an
estimate of the anticipated costs of such tax credits
and other tax incentives for the then-current fiscal
year, and an estimate of the costs of all such
tax credits or other tax benefits for the fiscal year
of the requested budget, including, but not
limited to:
(1) The total cost
to the state of tax expenditures resulting from such tax credits and
other tax benefits, the costs for each category of tax
credits and other tax benefits, and the
amounts of tax credits and other tax benefits by
geographical area;
(2) The extent to
which any employees of and recipients of any such tax credits or other
tax benefits has received RIte
Care or RIte Share benefits or assistance and the
impact that any
such benefits or assistance may have on the state
budget; and
(3) The cost to the
state of all appropriated expenditures for such tax credits and other
tax benefits, including line-item budgets for every
state-funded entity concerned with economic
development, including, but not limited to, the
department of labor and training, the department
of education, the economic development corporation,
the commissioner of higher education, and
the research and business assistance programs of
public institutions of higher education.
(c) Forthwith upon
passage of this act, the director of the department of revenue shall
undertake to develop a method and a procedure for the
collection and analysis of comprehensive
information on the basis of which the costs and the
fiscal and social efficacies associated with
those tax credits and other tax benefits conferred
pursuant to sections 44-31-1, 44-31-1.1, 44-31-
2, 44-32-2, 44-32-3, 44-42-2 and 44-55-4 may be
evaluated and weighed by the executive and
legislative branches of state government. On or before
December 31, 2008, the director shall
report to the governor and to the chairpersons of the
house and senate committees on finance
upon his or her compliance with this subsection and
set forth his conclusions and
recommendations with respect thereto.
SECTION
10. Chapter 42-142 of the General Laws entitled "Department of
Revenue" is
hereby amended by adding
thereto the following section:
42-142-6. Annual
unified economic development report. – (a) The director of the
department of revenue shall, no later than January
15th of each state fiscal year, compile and
publish, in printed and electronic form, including on
the Internet, an annual unified economic
development report which shall provide the following
comprehensive information regarding the
tax credits or other tax benefits conferred pursuant
to sections 42-64-10, 44-63-3, 42-64.5-5, 42-
64.3-1, and 44-31.2-6.1 during the preceding fiscal
year:
(1) The name of each
recipient of any such tax credit or other tax benefit; the dollar
amount of each such tax credit or other tax benefit;
and summaries of the number of full-time and
part-time jobs created or retained, an overview of
benefits offered, and the degree to which job
creation and retention, wage and benefit goals and
requirements of recipient and related
corporations, if any, have been met. The report shall
include aggregate dollar amounts of each
category of tax credit or other tax benefit; to the
extent possible, the amounts of tax credits and
other tax benefits by geographical area; the number of
recipients within each category of tax
credit or retained; overview of benefits offered; and
the degree to which job creation and
retention, wage and benefit rate goals and
requirements have been met within each category of
tax credit or other tax benefit;
(2) The cost to the state
and the approving agency for each tax credit or other tax benefits
conferred pursuant to sections 42-64-10, 44-63-3,
42-64.5-5, 42-64.3-1, and 44-31.2-6.1 during
the preceding fiscal year;
(3) To the extent
possible, the amounts of tax credits and other tax benefits by
geographical area; and
(4) The extent to
which any employees of and recipients of any such tax credits or other
tax benefits has received RIte
Care or RIte Share benefits or assistance.
(b) After the initial
report, the division of taxation will perform reviews of each recipient
of this tax credit or other tax benefits to ensure the
accuracy of the employee data submitted. The
division of taxation will include a summary of the
reviews performed along with any adjustments,
modifications and/or allowable recapture of tax credit
amounts and data included on prior year
reports.
SECTION
11. 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 also imposed a hospital
licensing
fee at the rate of five and three hundred fourteen
thousandths percent (5.314%) 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 chapters 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 [repealed]. 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,
2008, 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 five and
four hundred
sixty-five thousandths percent (5.465%) upon the net
patient services revenue of every hospital
for the hospital's first fiscal year ending on or
after January 1, 2009. 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 44 shall apply. Every hospital
shall pay the licensing fee to the tax administrator on or
before July 18, 2011 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 [repealed]. Every
hospital shall, on or before June 20, 2011, make a
return to the tax administrator containing the
correct computation of net patient services revenue
for the hospital fiscal year ending September
30, 2009, 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 forty-three
hundredths percent (5.43%) upon the net patient
services revenue of every hospital for the
hospital's first fiscal year ending on or after
January 1, 2010. 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 44 shall apply. Every hospital shall pay the
licensing fee to the tax administrator on or before
July 16, 2012 and payments shall be made by electronic
transfer of monies to the general
treasurer and deposited to the general fund in
accordance with section 44-50-11 [repealed]. Every
hospital shall, on or before June 18, 2012, make a
return to the tax administrator containing the
correct computation of net patient services revenue
for the hospital fiscal year ending September
30, 2010, 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 apply to hospitals as defined herein
which are duly licensed on July 1, 2010 2011,
and 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
12. Section 7-11-206 of the General Laws in Chapter 7-11 entitled “Licensing
and notice fees; and filing
requirements for federal advisers” is hereby amended to read as
follows:
7-11-206. Licensing
and notice fees; and filing requirements for federal covered
advisers. --
(a) A federal covered
adviser or an applicant for licensing shall pay an annual fee as
follows:
(1) Broker dealer three
hundred dollars ($300) and for each branch office one hundred
dollars ($100);
(2) Sales representative
sixty ($60.00) seventy-five dollars ($75.00);
(3) Investment adviser
three hundred dollars ($300);
(4) Investment adviser
representative sixty dollars ($60.00); and
(5) Federal covered
adviser two hundred and fifty ($250) three hundred dollars ($300).
(b) Except with respect
to federal covered advisers whose only clients are those described
in § 7-11-204(1)(i), a
federal covered adviser shall file any documents filed with the
Securities and Exchange Commission with the director,
that the director requires by rule or order,
together with any notice fee and consent to service of
process that the director requires by rule or
order. The notice filings under this subsection expire
annually on December 31, unless renewed.
(c) A notice filing
under this section is effective from receipt until the end of the calendar
year. A notice filing may be renewed by filing any
documents that have been filed with the
Securities and Exchange Commission as required by the
director along with a renewal fee of two
hundred fifty ($250) three hundred dollars ($300).
(d) A federal covered
adviser may terminate a notice filing upon providing the director
notice of the termination, which is effective upon receipt
by the director.
(e) Notwithstanding the
provisions of this section, until October 11, 1999, the director
may require the registration as an investment adviser
of any federal covered adviser who has
failed to promptly pay the fees required by this
section after written notification from the director
of the non-payment or underpayment of the fees. A
federal covered adviser is considered to have
promptly paid the fees if they are remitted to the
director within fifteen (15) days following the
federal covered adviser's receipt of written notice
from the director.
(f) For purposes of this
section, "branch office" means any location where one or more
associated persons of a broker-dealer regularly
conducts the business of effecting any transactions
in, or inducing or attempting to induce the purchase
or sale of any security, or is held out as such,
excluding:
(1) Any location that is
established solely for customer service and/or back office type
functions where no sales activities are conducted and
that is not held out to the public as a branch
office;
(2) Any location that is
the associated person's primary residents; provided that:
(i)
Only one associated person, or multiple associated persons who reside at that
location
and are members of the same immediate family, conduct
business at the location;
(ii) The location is not
held out to the public as an office and the associated person does
not meet with customers at the location;
(iii) Neither customer
funds nor securities are handled at that location;
(iv) The associated
person is assigned to a designated branch office, and such designated
branch office is reflected on all business cards,
stationery, advertisements and other
communications to the public by such associated
person;
(v) The associated
person's correspondence and communications with the public are
subject to the firm's supervision in accordance with
Rule 3010 of the Financial Industry
Regulatory Authority;
(vi) Electronic
communications are made through the broker-dealer's electronic system;
(vii) All orders are
entered through the designated branch office or an electronic system
established by the broker-dealer that is reviewable at
the branch office;
(viii) Written
supervisory procedures pertaining to supervision of sales activities
conducted at the residence are maintained by the
broker-dealer; and
(ix) A list of the
residence locations is maintained by the broker-dealer;
(3) Any location, other
than a primary residence, that is used for securities business for
less than thirty (30) business days in any one
calendar year, provided the broker-dealer complies
with the provisions of paragraph (f)(2)(i) through (ix) above;
(4) Any office of
convenience, where associated person occasionally and exclusively by
appointment meet with customers, which is not held out
to the public as an office.
(5) Any location that is
used primarily to engage in non-securities activities and from
which the associated person(s) effects no more than
twenty-five (25) securities transactions in any
one calendar year; provided that any advertisement or
sales literature identifying such location
also sets forth the address and telephone number of
the location from which the associated
person(s) conducting business at the non-branch
locations are directly supervised;
(6) The floor of a
registered national securities exchange where a broker-dealer conducts
a direct access business with public customers.
(7) A temporary location
established in response to the implementation of a business
continuity plan.
(8) Notwithstanding the
exclusions in paragraph (f), any location that is responsible for
supervising the activities of persons associated with
the broker-dealer at one or more non-branch
locations of the broker-dealer is considered to be a
branch office.
(9) The term
"business day" as used in subsection 7-11-206(f) shall not include
any
partial business day provided that the associated
person spends at least four (4) hours on such
business day at his or her designated branch office
during the hours that such office is normally
open for business.
(10) Where such office
of convenience is located on bank premises, signage necessary to
comply with applicable federal and state laws, rules
and regulations and applicable rules and
regulations of the New York Stock Exchange, other
self-regulatory organizations, and securities
and banking regulators may be displayed and shall not be
deemed "holding out" for purposes of
subdivision 7-11-206(f)(iv).
(g) If an application is
denied or withdrawn or the license is revoked, suspended, or
withdrawn, the director is not required to refund the
fee paid.
(h) The director may issue
a stop order suspending the activities of a federal covered
adviser in this state if the director reasonably
believes there has been a violation of the provisions
of this section.
SECTION
13. Section 31-10.3-20 of the General Laws in Chapter 31-10.3 entitled
“Rhode Island Uniform
Commercial Driver’s License Act” is hereby amended to read as follows:
31-10.3-20. Fees.
-- The fees charged for commercial licenses, endorsements,
classifications, restrictions, and required
examinations shall be as follows:
(1) For every commercial
operator's first license, thirty dollars ($30.00);
(2) For every renewal of
a commercial license, fifty dollars ($50.00);
(3) For every duplicate
commercial license, ten dollars ($10.00);
(4) For every duplicate
commercial instruction permit, ten dollars ($10.00)
(5) For any change of:
(i)
Classification(s), ten dollars ($10.00);
(ii) Endorsement(s), ten
dollars ($10.00);
(iii) Restriction(s),
ten dollars ($10.00);
(6) For every written
and/or oral examination, ten dollars ($10.00);
(7) The board of
governors for higher education shall establish fees that are deemed
necessary for the
one hundred dollars ($100). For every skill test examination administered by
the division, fifty
dollars ($50.00) which shall be dedicated to the
administrative costs of conducting the driving skills examination(s).
SECTION
14. Section 42-61-7.2 of the General Laws in Chapter 42-61 entitled
“State
Lottery” is hereby amended
by adding hereto the following section:
42-61-7.2. Payment
of prizes in excess of six hundred dollars ($600) – Setoff for
unpaid taxes. -- Notwithstanding
the provisions of section 42-61-7 and section 42-61-7.1 relating
to assignment of prizes
and setoff for child support debts and benefit overpayments, the following
setoff provisions shall
apply to the payment of any prizes or winning ticket in excess of six
hundred dollars ($600).
(1) With respect to a
person entitled to receive the prize or winning ticket who has unpaid
taxes owed to the tax administrator in excess of six
hundred dollars ($600), as evidenced by the
tax administrator pursuant to subdivision
42-61-7.2(3), the lottery director:
(i)
Shall setoff against the amount due to that person after state and federal tax
withholding an amount up to the balance of the unpaid
taxes owed as evidenced by the tax
administrator pursuant to subdivision 42-61-7.2(3),
and the director shall make payment of this
amount directly to the tax administrator; and
(ii) Shall pay to
that person the remaining balance of the prize or winning ticket amount,
if any, after reduction of the amount setoff above for
taxes owed. If in any instance, the lottery
director has received notice from more than one
claimant agency, the claim for child support
arrearage(s) owed to the department of human services
shall receive first (1st) priority, the claim
for benefit overpayments and interest owed to the
department of labor and training the second
(2nd) priority, and the claim for taxes owed to the tax
administrator the third (3rd) priority.
(2) The director
shall be discharged of all further liability upon payment of a prize or
winning ticket pursuant to this section.
(3) The tax
administrator shall periodically within each year furnish the director with a
list or compilation of names of individuals, together
with any other identifying information and in
a form that the director shall require, who as of the
date of the list or compilation, have unpaid
taxes in excess of six hundred dollars ($600).
(4) Any party
aggrieved by any action taken under this section may, within thirty (30)
days of the withholding of the payment by the lottery
director, seek a review with the tax
administrator, who may, in his or her discretion, issue
a temporary order prohibiting the
disbursement of funds under this section, pending
final decision.
SECTION
15. Section 44-23-1 of the General Laws in Chapter 44-23 entitled
“Estate
and Transfer Taxes –
Enforcement and Collection” is hereby amended to read as follows:
44-23-1.
Statements filed by executors, administrators and heirs-at-law. --
(a) Every executor,
administrator, and heir-at-law, within nine (9) months after the death
of the decedent, shall file with the tax administrator
a statement under oath showing the full and
fair cash value of the estate, the amounts paid out
from the estate for claims, expenses, charges,
and fees, and the statement shall also provide the
names and addresses of all persons entitled to
take any share or interest of the estate as legatees
or distributees of the estate.
(b) A fee of twenty-five
dollars ($25.00) fifty dollars ($50.00) is paid when filing any
statement required by this section. All fees received
under this section are allocated to the tax
administrator for enforcement and collection of taxes.
SECTION
16. Section 44-11-29.1 of the General Laws in Chapter 42-61 entitled
“Letters of good standing –
Fees” is hereby amended to read as follows:
44-11-29.1. Letters
of good standing – Fees. -- There shall be a fee of twenty-five
dollars ($25.00) fifty dollars ($50.00) for any corporate letter of good
standing issued upon the
request of a taxpayer. All fees collected under this
section shall be allocated to the tax
administrator for enforcement and collection of all
taxes.
SECTION
17. TITLE 44 of the General Laws entitled “TAXATION” is hereby amended
by adding thereto the
following chapter:
CHAPTER 67
THE
44-67-1. Short
title. -- This chapter shall be known as "The
Surcharge Act."
44-67-2. Definitions.
-- For purposes of this chapter:
(1)
"Administrator" means the tax administrator within the department of
revenue.
(2) “Compassion center”
means a not-for-profit entity registered under section 21-28.6-
12 that acquires, possesses, cultivates, manufactures,
delivers, transfers, transports, supplies or
dispenses marijuana, or related supplies and
educational materials, to registered qualifying
patients and their registered primary caregivers who
have designated it as one of their primary
caregivers.
(3) "Net patient
revenue" means the gross amount received on a cash basis by a
compassion center net of returns and allowances.
(4) “Practitioner”
means a person who is licensed with authority to prescribe drugs
pursuant to chapter 37 of title 5 or a physician
licensed with authority to prescribe drugs in
(5) "Primary
caregiver" means either a natural person who is at least twenty-one (21)
years old or a compassion center. Unless the primary
caregiver is a compassion center, a natural
primary caregiver may assist no more than five (5)
qualifying patients with their medical use of
marijuana.
(6) "Qualifying
patient" means a person who has been diagnosed by a practitioner as
having a debilitating medical condition and is a
resident of
(7)
"Surcharge" means the assessment that is imposed upon net patient
revenue
pursuant to this chapter.
(8) Any term not
defined in this chapter shall have the same meaning as used in chapter
28.6 of title 21.
44-67-3. Imposition
of surcharge – Compassion centers. -- A surcharge at a rate of
four percent (4.0%) shall be imposed upon the net
patient revenue received each month by every
compassion center. Every compassion center shall pay
the monthly surcharge to the tax
administrator no later than the twentieth (20th) day
of the month following the month that the net
patient revenue was received. This surcharge shall be
in addition to any other authorized fees that
have been assessed upon a compassion center.
44-67-4. Returns.
-- (a) Every compassion center shall, on or before the twentieth
(20th)
day of the month following the month that the net
patient revenue was received, make a return to
the tax administrator.
(b)
Compassion centers shall file their returns on a form as prescribed by the tax
administrator containing data for the computation of
net patient revenue and the surcharge. If a
return shows an overpayment of a surcharge, the tax
administrator shall refund or credit the
overpayment to the compassion center.
(c)
The tax administrator, for good cause shown, may extend the time within which a
compassion center is required to file a return. 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 compassion center shall be
liable for any interest as prescribed in this
chapter. Failure to file the return during the period
for the extension shall make the extension null
and void and an appropriate penalty or late filing
charge shall be imposed.
44-67-5. Setoff
for delinquent payment of surcharge. -- If a compassion center fails
to
pay a surcharge, penalty or late filing charge within
thirty (30) days of its due date, the tax
administrator may request any agency of state government
to setoff the amount of the
delinquency against any payment due the compassion
center from the agency and to remit to the
tax administrator the amount of the surcharge, penalty
and/or late filing charge from any such
payment owed the compassion center. Upon receipt of a
request for setoff from the tax
administrator, any agency of state government is
authorized and empowered to setoff the amount
of any delinquency against any payment due the
compassion center. The amount of setoff shall be
credited against the surcharge, penalty and/or late
filing charge due from the compassion center.
44-67-6. Surcharge
on available information – Interest on delinquencies – Penalties
– Collection powers. -- If any
compassion center fails, within the time required by this chapter,
to file a return, or files an insufficient or
incorrect return, or does not pay the surcharge imposed
by this chapter when it is due, the tax administrator
shall make an assessment based upon
available information, which assessment shall be
payable upon demand and shall bear interest
from the date when the surcharge should have been paid
at the annual rate set forth in section 44-
1-7. If any part of the surcharge is caused by the
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 surcharge. The tax administrator shall
collect the surcharge with interest, penalty
and/or late filing charge in the same manner and with
the same powers as prescribed for
collection of taxes in this title.
44-67-7. Claims
for refund – Hearing upon denial. -- (a) A claim for refund of an
overpayment of a surcharge may be filed by a
compassion center with the tax administrator at any
time within two (2) years after the surcharge has been
paid. If the tax administrator determines
that a surcharge has been overpaid, the tax
administrator shall make a refund with interest from
the date of overpayment at the rate provided in
section 44-1-7.1.
(b) Any compassion
center aggrieved by an action of the tax administrator in determining
the amount of any surcharge or penalty imposed under
the provisions of this chapter may, within
thirty (30) days after the notice of the action was mailed,
apply to the tax administrator, for a
hearing relative to the surcharge or penalty. The tax
administrator shall fix a time and place for
the hearing and shall so notify the compassion center.
44-67-8. Hearing
by tax administrator on application. -- Following the hearing, if
the
tax administrator upholds the amount of the surcharge
assessed, the amount owed shall be
assessed together with any penalty and/or interest
thereon.
44-67-9. Appeals.
-- Appeals from administrative orders or decisions made pursuant to
any provisions of this chapter shall be to the sixth
(6th) division district court pursuant to chapter 8
of title 8. The compassion center's right to appeal
under this section shall be conditional upon
prepayment of all surcharges, interest, and penalties,
unless the compassion center moves for and
is granted an exemption from the prepayment
requirement, pursuant to section 8-8-26. Following
the appeal, if the court determines that the compassion
center is entitled to a refund, the
compassion center shall be paid interest on the refund
at the rate provided in section 44-1-7.1.
44-67-10.
(1) Keep records as
may be necessary to determine the amount of its liability under this
chapter;
(2) Preserve those
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 has
been completed; and
(3) Make those
records available for inspection upon demand by the tax administrator or
his/her authorized agents at reasonable times during
regular business hours.
44-67-11. Method
of payment and deposit of surcharge. -- (a) Payments required by
this chapter shall be made by electronic transfer of
monies to the general treasurer for deposit in
the general fund.
(b) The general
treasurer is authorized to establish necessary accounts and to take all
steps necessary to facilitate the electronic transfer
of monies. Upon request of the tax
administrator the general treasurer shall provide the
tax administrator a record of any such monies
transferred and deposited.
4-67-12. Rules
and regulations. -- The tax administrator is authorized to
promulgate
rules and regulations to carry out the provisions,
policies, and purposes of this chapter including,
but not limited to, emergency rules and regulations
pursuant to subsection 42-35-3(b).
44-67-13. 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 that 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
18. Section 44-1-34 of the General Laws in Chapter 44-1 entitled “State Tax
Officials” is hereby
amended to read as follows:
44-1-34. Tax
Administrator to prepare list of delinquent taxpayers – Notice – Public
inspection. -- (a)
Notwithstanding any other provision of law, the tax administrator may, on a
quarterly basis,
(1) Prepare a list of
the one hundred (100) delinquent taxpayers under chapter 44-30 who
owe the largest amount of state tax and whose taxes
have been unpaid for a period in excess of
ninety (90) days following the date their tax was due.
(2) Prepare a list of
the one hundred (100) delinquent taxpayers collectively under
chapters 44-11, 44-12, 44-13, 44-14, 44-15, 44-17,
44-18, and 44-20, who owe the largest
amount of state tax and whose taxes have been unpaid
for a period in excess of ninety (90) days
following the date their tax was due.
(3) Each The
list may contain the name and address of each delinquent taxpayer, the type
of tax levied, and the amount of the delinquency,
including interest and penalty, as of the end of
the quarter. No taxpayer shall be included on such
list if the tax assessment in question is the
subject of an appeal.
(b) The tax
administrator shall not list any delinquent taxpayer until such time as he or
she gives the delinquent taxpayer thirty (30) days
notice of intent to publish the taxpayer's
delinquency. Said notice shall be sent to the
taxpayer's last known address by regular and
certified mail. If during said thirty (30) day period
the taxpayer makes satisfactory arrangement
for payment of the delinquent tax, the name of such taxpayer
shall not be published as long as the
taxpayer does not default on any payment agreement
entered into with the division of taxation.
(c) Any such list
prepared by the tax division shall be available to the public for
inspection by any person and may be published by the
tax administrator on the tax division
website.
SECTION
19. Chapter 31-2 of the General Laws entitled “Division of Motor Vehicles”
is hereby amended by adding
thereto the following section:
31-2-24. Service
fees on returned checks. -- The division of motor vehicles is
authorized to impose a fee on returned checks, which
shall not exceed fifty dollars ($50.00) per
returned check.
SECTION
20. Chapter 42-142 of the General Laws entitled "Department of Revenue"
is
hereby amended by adding
thereto the following section:
42-142-7.
Collections of debts. – (a) For the purpose of this section
“governmental
entity” means the state, state agency, board
commission, department, public institution of higher
learning, all political subdivisions of the state and
quasi-state agency.
(b) Any governmental
entity may contract to allow the tax administrator to collect an
outstanding liability owed the governmental entity. In
administering the provisions of those
agreements, the tax administrator shall have all the
rights and powers of collection provided
pursuant to title 44 for the collection of taxes and
all the rights and powers authorized the
governmental entity to which the liability is owed. In
addition, the tax administrator shall have all
of the rights and powers of collection provided
pursuant to title 44 for the collection of taxes
including, but not limited to, the right to set-off
debts enumerated in section 44-30.1 against any
amounts collected under the agreements. Subject to
subordination to any set-off for past-due child
support, the tax administrator shall also have the
right to set-off amounts owed to the division of
taxation against amounts collected under the
agreements.
(c) The tax
administrator may charge and retain a reasonable fee for a collection effort
made on behalf of a governmental entity. The amount of
the fee must be negotiated between the
governmental entity and the tax administrator. The
debtor must be given full credit toward the
satisfaction of the debt for the amount of the fee
collected by the tax administrator pursuant to
this section.
(d) Governmental
entities that contract with the tax administrator pursuant to this section
shall indemnify the tax administrator against
injuries, actions, liabilities, or proceedings arising
from the collection or attempted collection by the tax
administrator of the liability owed to the
governmental entity.
(e) The governmental entity
shall notify the debtor of its intention to submit the liability
to the tax administrator for collection and of the
debtor’s right to appeal not less than thirty (30)
days before the liability is submitted to the tax
administrator for collection.
SECTION
21. Section 42-64-20 of the General Laws in Chapter 42-64 entitled "Rhode
Island Economic Development
Corporation" is hereby amended to read as follows:
42-64-20.
Exemption from taxation. -- (a) The exercise of the powers granted by
this
chapter will be in all respects for the benefit of the
people of this state, the increase of their
commerce, welfare, and prosperity and for the
improvement of their health and living conditions
and will constitute the performance of an essential
governmental function and the corporation
shall not be required to pay any taxes or assessments
upon or in respect of any project or of any
property or moneys of the
municipality or political subdivision of the state;
provided, that the corporation shall make
payments in lieu of real property taxes and
assessments to municipalities and political
subdivisions with respect to projects of the
corporation located in the municipalities and political
subdivisions during those times that the corporation
derives revenue from the lease or operation
of the projects. Payments in lieu of taxes shall be in
amounts agreed upon by the corporation and
the affected municipalities and political subdivisions.
Failing the agreement, the amounts of
payments in lieu of taxes shall be determined by the
corporation using a formula that shall
reasonably ensure that the amounts approximate the
average amount of real property taxes due
throughout the state with respect to facilities of a
similar nature and size. Any municipality or
political subdivision is empowered to accept at its
option an amount of payments in lieu of taxes
less than that determined by the corporation. If,
pursuant to section 42-64-13(f), the corporation
shall have agreed with a municipality or political
subdivision that it shall not provide all of the
specified services, the payments in lieu of taxes
shall be reduced by the cost incurred by the
corporation or any other person in providing the
services not provided by the municipality or
political subdivision.
(b) The corporation
shall not be required to pay state taxes of any kind, and the
corporation, its projects, property, and moneys and,
except for estate, inheritance, and gift taxes,
any bonds or notes issued under the provisions of this
chapter and the income (including gain
from sale or exchange) from these shall at all times
be free from taxation of every kind by the
state and by the municipalities and all political
subdivisions of the state. The corporation shall not
be required to pay any transfer tax of any kind on
account of instruments recorded by it or on its
behalf.
(c) For purposes of the
exemption from taxes and assessments upon or in respect of any
project under subsections (a) or (b) of this section,
the corporation shall not be required to hold
legal title to any real or personal property,
including any fixtures, furnishings or equipment which
are acquired and used in the construction and development
of the project, but the legal title may
be held in the name of a lessee (including sublessees) from the corporation. This property, which
shall not include any goods or inventory used in the
project after completion of construction, shall
be exempt from taxation to the same extent as if legal
title of the property were in the name of the
corporation; provided that the board of directors of
the corporation adopts a resolution confirming
use of the tax exemption for the project by the
lessee. Such resolution shall not take effect until
thirty (30) days from passage. The resolution shall
include findings that: (1) the project is a
project of the corporation under section 42-64-3(20),
and (2) it is in the interest of the corporation
and of the project that legal title be held by the
lessee from the corporation. In adopting the
resolution, the board of directors may consider any
factors it deems relevant to the interests of the
corporation or the project including, for example, but
without limitation, reduction in potential
liability or costs to the corporation or designation
of the project as a "Project of Critical Economic
Concern" pursuant to Chapter 117 of this title.
(d) For purposes of the
exemption from taxes and assessments for any project of the
corporation held by a lessee of the corporation under
subsection (c) of this section, any such
project shall be subject to the following additional
requirements:
(1) The total sales tax
exemption benefit to the lessee will be implemented through a
reimbursement process as determined by the division of
taxation rather than an up-front purchase
exemption;
(2) The sales tax
benefits granted pursuant to RIGL 42-64-20(c) shall only apply to
project approved prior to July 1, 2011 and shall: (i) only apply to
materials used in the
construction, reconstruction or rehabilitation of the
project and to the acquisition of furniture,
fixtures and equipment, except automobiles, trucks or
other motor vehicles, or materials that
otherwise are depreciable and have a useful life of
one year or more, for the project for a period
not to exceed six (6) months after receipt of a
certificate of occupancy for any given phase of the
project for which sales tax benefits are utilized; and
(ii) not exceed an amount equal to the income
tax revenue received by the state from the new
full-time jobs with benefits excluding project
construction jobs, generated by the project within a
period of three (3) years from after the receipt
of a certificate of occupancy for any given phase of
the project. "Full- time jobs with benefits"
means jobs that require working a minimum of thirty
(30) hours per week within the state, with a
median wage that exceeds by five percent (5%) the
median annual wage for the preceding year
for full-time jobs in
benefit package that is typical of companies within
the lessee's industry. The sales tax benefits
granted pursuant to
projects approved on or after July 1, 2011.
(3) The corporation
shall transmit the analysis required by RIGL 42-64-10(a)(2) to the
house and senate fiscal committee chairs, the department
of labor and training and the division of
taxation promptly upon completion. Annually
thereafter, the department of labor and training
shall certify to the house and senate fiscal committee
chairs, the house and senate fiscal advisors,
the corporation and the division of taxation the
actual number of new full-time jobs with benefits
created by the project, in addition to construction
jobs, and whether such new jobs are on target to
meet or exceed the estimated number of new jobs identified
in the analysis above. This
certification shall no longer be required when the
total amount of new income tax revenue
received by the state exceeds the amount of the sales
tax exemption benefit granted above.
(4) The department of
labor and training shall certify to the house and senate fiscal
committee chairs and the division of taxation that
jobs created by the project are "new jobs" in the
state of
reduction of, those employees of the lessee currently
employed in
from another facility of the lessee's in
the result of a merger or acquisition of a company
already located in
the corporation, with the assistance of the lessee,
the department of labor and training, the
department of human services and the division of
taxation shall provide annually an analysis of
whether any of the employees of the project qualify
for RIte Care or RIte Share
benefits and the
impact such benefits or assistance may have on the
state budget.
(5) Notwithstanding any
other provision of law, the division of taxation, the department
of labor and training and the department of human
services are authorized to present, review and
discuss lessee specific tax or employment information
or data with the corporation, the house and
senate fiscal committee chairs, and/or the house and
senate fiscal advisors for the purpose of
verification and compliance with this resolution; and
(6) The corporation and
the project lessee shall agree that, if at any time prior to the state
recouping the amount of the sales tax exemption
through new income tax collections from the
project, not including construction job income taxes,
the lessee will be unable to continue the
project, or otherwise defaults on its obligations to
the corporation, the lessee shall be liable to the
state for all the sales tax benefits granted to the
project plus interest, as determined in RIGL 44-1-
7, calculated from the date the lessee received the
sales tax benefits.
SECTION
22. Section 45-37.1-9.1 of the General Laws in Chapter 45-37.1 entitled
"Industrial Facilities
Corporation" is hereby amended to read as follows:
45-37.1-9.1.
Procedure. -- (a) An exemption from payment of state sales tax shall
only
apply to projects approved prior to July 1, 2011 and
shall be applicable to materials used
in
construction of a facility only to the extent that the
costs of such materials do not exceed the
amount financed through the corporation as required in
section 45-37.1-9 shall be deemed to have
been authorized thirty (30) days from the date of the
completion by the corporation of an
economic analysis that shall include:
(1) A full description
of the project to which the tax exemption is related; and
(2) The corporation's
analysis of the impact of the proposed project will or may have on
the state. The analysis shall be supported by such
appropriate data and documentation and shall
consider, but not be limited to, the following
factors:
(i)
The impact on the industry or industries in which the completed project will be
involved;
(ii) State fiscal
matters, including the state budget (revenues and expenses);
(iii) The financial
exposure of the taxpayers of the state under the plans for the proposed
project and negative foreseeable contingencies that
may arise therefrom;
(iv) The approximate
number of jobs projected to be created, construction and
nonconstruction;
(v) Identification of
geographic sources of the staffing for identified jobs;
(vi) The projected
duration of the identified construction jobs;
(vii) The approximate
wage rates for the identified jobs;
(viii) The types of
fringe benefits to be provided with the identified jobs, including
healthcare insurance and any retirement benefits;
(ix) The projected
fiscal impact on increased personal income taxes to the state of Rhode
Island; and
(x) The description of
any plan or process intended to stimulate hiring from the host
community, training of employees or potential
employees and outreach to minority job applicants
and minority businesses.
(b) For purposes of the
exemption from taxes and assessments for any project of the
corporation held by a lessee of the corporation under
section 9 of this chapter and subsection (a)
of this section, any such project shall be subject to
the following additional requirements:
(1) The total sales tax
exemption benefit to the lessee will be implemented through a
reimbursement process as determined by the division of
taxation rather than an up-front purchase
exemption;
(2) The sales tax
benefits granted pursuant to section 9 of this chapter shall: (i) only
apply to projects approved prior to July 1, 2011, (i)(ii) only
apply to materials used in the
construction, reconstruction or rehabilitation of the
project and to the acquisition of furniture,
fixtures and equipment, except automobiles, trucks or
other motor vehicles, or materials that
otherwise are depreciable and have a useful life of
one year or more, for the project for a period
not to exceed six (6) months after receipt of a
certificate of occupancy for any given phase of the
project for which sales tax benefits are utilized; and
(ii) not exceed an amount equal to the income
tax revenue received by the state from the new
full-time jobs with benefits excluding project
construction jobs, generated by the project within a
period of three (3) years from after the receipt
of a certificate of occupancy for any given phase of
the project. For purposes of this section, "full-
time jobs with benefits" means jobs that require
working a minimum of thirty (30) hours per
week within the state, with a median wage that exceeds
by five percent (5%) the median annual
wage for the preceding year for full-time jobs in
labor and training, with a benefit package that is
typical of companies within the lessee's industry.
(3) The corporation
shall transmit the analysis required under section 9 of this chapter to
the house and senate fiscal committee chairs, the
department of labor and training and the
division of taxation promptly upon completion.
Annually thereafter, the department of labor and
training shall certify to the house and senate fiscal
committee chairs, the house and senate fiscal
advisors, the corporation and the division of taxation
the actual number of new full-time jobs with
benefits created by the project, in addition to
construction jobs, and whether such new jobs are on
target to meet or exceed the estimated number of new
jobs indentified in the analysis above. This
certification shall no longer be required when the
total amount of new income tax revenue
received by the state exceeds the amount of the sales
tax exemption benefit granted above.
(4) The department of labor
and training shall certify to the house and senate fiscal
committee chairs and the division of taxation that
jobs created by the project are "new jobs" in the
state of
reduction of, those employees of the lessee currently
employed in
from another facility of the lessee's in
the result of a merger or acquisition of a company
already located in
the corporation, with the assistance of the lessee,
the department of labor and training, the
department of human services and the division of
taxation shall provide annually an analysis of
whether any of the employees of the project qualify
for RIte Care or RIte Share
benefits and the
impact such benefits or assistance may have on the
state budget.
(5) Notwithstanding any
other provision of law, the division of taxation, the department
of labor and training and the department of human
services are authorized to present, review and
discuss lessee specific tax or employment information
or data with the corporation, the house and
senate fiscal committee chairs, and/or the house and
senate fiscal advisors for the purpose of
verification and compliance with this resolution; and
(6) The corporation and
the project lessee shall agree that, if any time prior to the state
recouping the amount of the sales tax exemption
through new income tax collections from the
project, not including construction job income taxes,
the lessee will be unable to continue the
project, or otherwise defaults on its obligations to
the corporation, the lessee shall be liable to the
state for all the sales tax benefits granted to the
project plus interest, as determined in RIGL 44-1-
7, calculated from the date the lessee received the
sales tax benefits. The sales tax exemption shall
only apply to projects approved prior to July 1, 2011.
SECTION
23. Section 44-18-7 of the General Laws in Chapter 44-18 entitled "Sales
and
Use Taxes - Liability and
Computation" is hereby amended to read as follows:
44-18-7. Sales
defined. -- "Sales" means and includes:
(1) Any transfer of title
or possession, exchange, barter, lease, or rental, conditional or
otherwise, in any manner or by any means of tangible
personal property for a consideration.
"Transfer of possession", "lease",
or "rental" includes transactions found by the tax administrator
to be in lieu of a transfer of title, exchange, or
barter.
(2) The producing,
fabricating, processing, printing, or imprinting of tangible personal
property for a consideration for consumers who furnish
either directly or indirectly the materials
used in the producing, fabricating, processing,
printing, or imprinting.
(3) The furnishing and
distributing of tangible personal property for a consideration by
social, athletic, and similar clubs and fraternal
organizations to their members or others.
(4) The furnishing,
preparing, or serving for consideration of food, meals, or drinks,
including any cover, minimum, entertainment, or other
charge in connection therewith.
(5) A transaction
whereby the possession of tangible personal property is transferred, but
the seller retains the title as security for the
payment of the price.
(6) Any withdrawal,
except a withdrawal pursuant to a transaction in foreign or interstate
commerce, of tangible personal property from the place
where it is located for delivery to a point
in this state for the purpose of the transfer of title
or possession, exchange, barter, lease, or rental,
conditional or otherwise, in any manner or by any
means whatsoever, of the property for a
consideration.
(7) A transfer for a
consideration of the title or possession of tangible personal property,
which has been produced, fabricated, or printed to the
special order of the customer, or any
publication.
(8) The furnishing and
distributing of electricity, natural gas, artificial gas, steam,
refrigeration, and water.
(9) (i) The furnishing for consideration of intrastate,
interstate and international
telecommunications service sourced in this state in
accordance with subsections 44-18.1(15) and
(16) and all ancillary services, any maintenance
services of telecommunication equipment other
than as provided for in subdivision 44-18-12(b)(ii).
For the purposes of chapters 18 and 19 of this
title only, telecommunication service does not include
service rendered using a prepaid telephone
calling arrangement.
(ii) Notwithstanding
the provisions of paragraph (i) of this subdivision,
in accordance
with the Mobile Telecommunications Sourcing Act (4 U.S.C.
sections 116 -- 126), subject to the
specific exemptions described in 4 U.S.C. section
116(c), and the exemptions provided in
sections 44-18-8 and 44-18-12, mobile
telecommunications services that are deemed to be
provided by the customer's home service provider are
subject to tax under this chapter if the
customer's place of primary use is in this state
regardless of where the mobile
telecommunications services originate, terminate or
pass through. Mobile telecommunications
services provided to a customer, the charges for which
are billed by or for the customer's home
service provider, shall be deemed to be provided by
the customer's home service provider.
(10) The furnishing of
service for transmission of messages by telegraph, cable, or radio
and the furnishing of community antenna television,
subscription television, and cable television
services.
(11) The rental of
living quarters in any hotel, rooming house, or tourist camp.
(12) The transfer for
consideration of prepaid telephone calling arrangements and the
recharge of prepaid telephone calling arrangements
sourced to this state in accordance with
sections 44-18.1-11 and 44-18.1-15. "Prepaid
telephone calling arrangement" means and includes
prepaid calling service and prepaid wireless calling
service.
(13) The furnishing
of package tour and scenic and sightseeing transportation services as
set forth in the 2007 North American Industrial
Classification System codes 561520 and 487
provided that such services are conducted in the
state, in whole or in part. Said services include
all activities engaged in for other persons for a fee,
retainer, commission, or other monetary
charge, which activities involve the performance of a
service as distinguished from selling
property.
(14) The sale,
storage, use or other consumption of over-the-counter drugs as defined in
paragraph 44-18-7.1(h)(ii).
(15) The sale,
storage, use or other consumption of prewritten computer software
delivered electronically or by load and leave as
defined in paragraph 44-18-7.1(v).
(16) The sale,
storage, use or other consumption of medical marijuana as defined in
section 21-28.6-3.
SECTION
24. Sections 44-18-8, 44-18-12, 44-18-15, 44-18-20, 44-18-21, 44-18-22, 44-
18-23, 44-18-25 and
44-18-30 of the General Laws in Chapter 44-18 entitled "Sales and Use
Taxes - Liability and
Computation" are hereby amended to read as follows:
44-18-8. Retail
sale or sale at retail defined. -- A "retail sale" or
"sale at retail" means
any sale, lease or rentals of tangible personal
property, prewritten computer software delivered
electronically or by load and leave, and/or package
tour and scenic and sightseeing transportation
services for
any purpose other than resale, sublease or subrent in
the regular course of business.
The sale of tangible personal property to be used for
purposes of rental in the regular course of
business is considered to be a sale for resale. In
regard to telecommunications service as defined
in section 44-18-7(9), retail sale does not include
the purchase of telecommunications service by
a telecommunications provider from another
telecommunication provider for resale to the
ultimate consumer; provided, that the purchaser
submits to the seller a certificate attesting to the
applicability of this exclusion, upon receipt of which
the seller is relieved of any tax liability for
the sale.
44-18-12. "
sales tax and means the total amount of consideration,
including cash, credit, property, and
services, for which personal property or services are
sold, leased, or rented, valued in money,
whether received in money or otherwise, without any
deduction for the following:
(i)
The seller's cost of the property sold;
(ii) The cost of
materials used, labor or service cost, interest, losses, all costs of
transportation to the seller, all taxes imposed on the
seller, and any other expense of the seller;
(iii) Charges by the
seller for any services necessary to complete the sale, other than
delivery and installation charges;
(iv) Delivery charges,
as defined in section 44-18-7.1(i); or
(v) Credit for any
trade-in, as determined by state law. ;
(vi) The amount
charged for package tour and scenic and sightseeing transportation
services; or
(b) "Sales
price" shall not include:
(i)
Discounts, including cash, term, or coupons that are not reimbursed by a third
party
that are allowed by a seller and taken by a purchaser
on a sale;
(ii) The amount charged
for labor or services, except for package tours and scenic and
sightseeing transportation services, rendered in installing or applying the property sold
when the
charge is separately stated by the retailer to the
purchaser; provided that in transactions subject to
the provisions of this chapter the retailer shall
separately state such charge when requested by the
purchaser and, further, the failure to separately
state such charge when requested may be
restrained in the same manner as other unlawful acts
or practices prescribed in chapter 13.1 of
title 6.
(iii) Interest,
financing, and carrying charges from credit extended on the sale of personal
property or services, if the amount is separately
stated on the invoice, bill of sale or similar
document given to the purchaser; and
(iv) Any taxes legally
imposed directly on the consumer that are separately stated on the
invoice, bill of sale or similar document given to the
purchaser.
(v) Manufacturer
rebates allowed on the sale of motor vehicles.
(c) "Sales
price" shall include consideration received by the seller from third
parties if:
(i)
The seller actually receives consideration from a party other than the
purchaser and
the consideration is directly related to a price
reduction or discount on the sale;
(ii) The seller has an
obligation to pass the price reduction or discount through to the
purchaser;
(iii) The amount of the
consideration attributable to the sale is fixed and determinable by
the seller at the time of the sale of the item to the
purchaser; and
(iv) One of the
following criteria is met:
(A) The purchaser
presents a coupon, certificate or other documentation to the seller to
claim a price reduction or discount where the coupon,
certificate or documentation is authorized,
distributed or granted by a third party with the
understanding that the third party will reimburse
any seller to whom the coupon, certificate or
documentation is presented;
(B) The purchaser
identifies himself or herself to the seller as a member of a group or
organization entitled to a price reduction or discount
(a "preferred customer" card that is available
to any patron does not constitute membership in such a
group), or
(C) The price reduction
or discount is identified as a third party price reduction or
discount on the invoice received by the purchaser or
on a coupon, certificate or other
documentation presented by the purchaser.
44-18-15.
"Retailer" defined. -- (a) "Retailer" includes:
(1) Every person
engaged in the business of making sales at retail, prewritten computer
software delivered electronically or by load and
leave, and/or package tour and scenic and
sightseeing transportation services, including sales at auction of tangible personal
property owned
by the person or others.
(2) Every person making
sales of tangible personal property, prewritten computer
software delivered electronically or by load and
leave, and/or package tour and scenic and
sightseeing transportation services, 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 United States Constitution during
such four (4) quarterly periods.
(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, prewritten
computer software delivered electronically or by load
and leave, and/or package tour and scenic
and sightseeing transportation services, owned by the person or others for storage, use, or
other
consumption.
(4) A person conducting
a horse race meeting with respect to horses, which are claimed
during the meeting.
(5) Every person
engaged in the business of renting any living quarters in any hotel,
rooming house, or tourist camp.
(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, prewritten computer
software delivered electronically or by load and
leave, and/or package tour and scenic and
sightseeing transportation services, 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.
44-18-20. Use tax
imposed. -- (a) An excise tax is imposed on the storage, use, or other
consumption in this state of tangible personal
property, or prewritten computer software delivered
electronically or by load and leave, and/or package
tour and scenic and sightseeing transportation
services,
including a motor vehicle, a boat, an airplane, or a trailer, purchased from
any retailer at
the rate of six percent (6%) of the sale price of the
property.
(b) An excise tax is
imposed on the storage, use, or other consumption in this state of a
motor vehicle, a boat, an airplane, or a trailer
purchased from other than a licensed motor vehicle
dealer or other than a retailer of boats, airplanes,
or trailers respectively, at the rate of six percent
(6%) of the sale price of the motor vehicle, boat,
airplane, or trailer.
(c) The word
"trailer" as used in this section and in section 44-18-21 means and
includes
those defined in section 31-1-5(a) -- (e) and also
includes boat trailers, camping trailers, house
trailers, and mobile homes.
(d) Notwithstanding the
provisions contained in this section and in section 44-18-21
relating to the imposition of a use tax and liability
for this tax on certain casual sales, no tax is
payable in any casual sale:
(1) When the transferee
or purchaser is the spouse, mother, father, brother, sister, or
child of the transferor or seller;
(2) When the transfer
or sale is made in connection with the organization, reorganization,
dissolution, or partial liquidation of a business entity;
provided:
(i)
The last taxable sale, transfer, or use of the article being transferred or
sold was
subjected to a tax imposed by this chapter;
(ii) The transferee is
the business entity referred to or is a stockholder, owner, member,
or partner; and
(iii) Any gain or loss
to the transferor is not recognized for income tax purposes under
the provisions of the federal income tax law and
treasury regulations and rulings issued
thereunder;
(3) When the sale or
transfer is of a trailer, other than a camping trailer, of the type
ordinarily used for residential purposes and commonly
known as a house trailer or as a mobile
home; or
(4) When the transferee
or purchaser is exempt under the provisions of section 44-18-30
or other general law of this state or special act of
the general assembly of this state.
(e) The term
"casual" means a sale made by a person other than a retailer;
provided, that
in the case of a sale of a motor vehicle, the term
means a sale made by a person other than a
licensed motor vehicle dealer or an auctioneer at an
auction sale. In no case is the tax imposed
under the provisions of subsections (a) and (b) of
this section on the storage, use, or other
consumption in this state of a used motor vehicle less
than the product obtained by multiplying
the amount of the retail dollar value at the time of
purchase of the motor vehicle by the applicable
tax rate; provided, that where the amount of the sale
price exceeds the amount of the retail dollar
value, the tax is based on the sale price. The tax
administrator shall use as his or her guide the
retail dollar value as shown in the current issue of
any nationally recognized used vehicle guide
for appraisal purposes in this state. On request within
thirty (30) days by the taxpayer after
payment of the tax, if the tax administrator
determines that the retail dollar value as stated in this
subsection is inequitable or unreasonable, he or she
shall, after affording the taxpayer reasonable
opportunity to be heard, re-determine the tax.
(f) Every person making
more than five (5) retail sales of tangible personal property or
prewritten computer software delivered electronically
or by load and leave, and/or package tour
and scenic and sightseeing transportation services during any twelve (12) month period, including
sales made in the capacity of assignee for the benefit
of creditors or receiver or trustee in
bankruptcy, is considered a retailer within the
provisions of this chapter.
(g) (1) "Casual
sale" includes a sale of tangible personal property not held or used by a
seller in the course of activities for which the
seller is required to hold a seller's permit or permits
or would be required to hold a seller's permit or
permits if the activities were conducted in this
state; provided, that the sale is not one of a series
of sales sufficient in number, scope, and
character (more than five (5) in any twelve (12) month
period) to constitute an activity for which
the seller is required to hold a seller's permit or
would be required to hold a seller's permit if the
activity were conducted in this state.
(2) Casual sales also
include sales made at bazaars, fairs, picnics, or similar events by
nonprofit organizations, which are organized for
charitable, educational, civic, religious, social,
recreational, fraternal, or literary purposes during
two (2) events not to exceed a total of six (6)
days duration each calendar year. Each event requires
the issuance of a permit by the division of
taxation. Where sales are made at events by a vendor,
which holds a sales tax permit and is not a
nonprofit organization, the sales are in the regular
course of business and are not exempt as casual
sales.
(h) The use tax imposed
under this section for the period commencing July 1, 1990 is at
the rate of seven percent (7%). In recognition of
the work being performed by the Streamlined
Sales and Use Tax Governing Board, upon any federal
law which requires remote sellers to
collect and remit taxes, effective the first (1st) day
of the first (1st) state fiscal quarter following
the change, the rate imposed under section 44-18-18
shall be six and one-half percent (6.5%).
44-18-21.
Liability for use tax. -- (a) Every person storing, using, or consuming
in this
state tangible personal property, including a motor
vehicle, boat, airplane, or trailer, purchased
from a retailer, and a motor vehicle, boat, airplane,
or trailer, purchased from other than a
licensed motor vehicle dealer or other than a retailer
of boats, airplanes, or trailers respectively, ;
or storing, using or consuming specified prewritten
computer software delivered electronically or
by load and leave, and/or package tour and scenic and
sightseeing transportation services
is liable
for the use tax. The person's liability is not
extinguished until the tax has been paid to this state,
except that a receipt from a retailer engaging in
business in this state or from a retailer who is
authorized by the tax administrator to collect the tax
under rules and regulations that he or she
may prescribe, given to the purchaser pursuant to the
provisions of section 44-18-22, is sufficient
to relieve the purchaser from further liability for
the tax to which the receipt refers.
(b) Each person before
obtaining an original or transferral registration for
any article or
commodity in this state, which article or commodity is
required to be licensed or registered in the
state, shall furnish satisfactory evidence to the tax
administrator that any tax due under this
chapter with reference to the article or commodity has
been paid, and for the purpose of effecting
compliance, the tax administrator, in addition to any
other powers granted to him or her, may
invoke the provisions of section 31-3-4 in the case of
a motor vehicle. The tax administrator,
when he or she deems it to be for the convenience of
the general public, may authorize any
agency of the state concerned with the licensing or registering
of these articles or commodities to
collect the use tax on any articles or commodities
which the purchaser is required by this chapter
to pay before receiving an original or transferral registration. The general assembly shall
annually
appropriate a sum that it deems necessary to carry out
the purposes of this section.
Notwithstanding the provisions of sections 44-18-19,
44-18-22, and 44-18-24, the sales or use tax
on any motor vehicle and/or recreational vehicle
requiring registration by the administrator of the
division of motor vehicles shall not be added by the
retailer to the sale price or charge but shall be
paid directly by the purchaser to the tax
administrator, or his or her authorized deputy or agent as
provided in this section.
(c) In cases involving
total loss or destruction of a motor vehicle occurring within one
hundred twenty (120) days from the date of purchase
and upon which the purchaser has paid the
use tax, the amount of the tax constitutes an
overpayment. The amount of the overpayment may
be credited against the amount of use tax on any
subsequent vehicle which the owner acquires to
replace the lost or destroyed vehicle or may be
refunded, in whole or in part.
44-18-22.
Collection of use tax by retailer. -- Every retailer engaging in
business in this
state and making sales of tangible personal property or
prewritten computer software delivered
electronically or by load and leave, for storage, use, or other consumption in this state,
and/or
providing package tour and scenic and sightseeing
transportation services, not exempted
under
this chapter shall, at the time of making the sales,
or if the storage, use, or other consumption of
the tangible personal property, prewritten computer
software delivered electronically or by load
and leave, and/or providing package tour and scenic
and sightseeing transportation services,
is not
then taxable under this chapter, at the time the
storage, use, or other consumption becomes
taxable, collect the tax from the purchaser and give
to the purchaser a receipt in the manner and
form prescribed by the tax administrator.
44-18-23.
"Engaging in business" defined. -- As used in sections
44-18-21 and 44-18-
22 the term "engaging in business in this
state" means the selling or delivering in this state, or any
activity in this state related to the selling or
delivering in this state of tangible personal property
or prewritten computer software delivered
electronically or by load and leave
for storage, use, or
other consumption in this state, as well as
providing package tour and scenic and sightseeing
transportation services. This term includes, but is not limited to, the
following acts or methods of
transacting business:
(1) Maintaining,
occupying, or using in this state permanently or temporarily, directly or
indirectly or through a subsidiary, representative, or
agent by whatever name called and whether
or not qualified to do business in this state, any
office, place of distribution, sales or sample room
or place, warehouse or storage place, or other place
of business;
(2) Having any
subsidiary, representative, agent, salesperson, canvasser, or solicitor
permanently or temporarily, and whether or not the
subsidiary, representative, or agent is
qualified to do business in this state, operate in
this state for the purpose of selling, delivering, or
the taking of orders for any tangible personal
property, or prewritten computer software delivered
electronically or by load and leave, and/or package
tour and scenic and sightseeing transportation
services;
(3) The regular or
systematic solicitation of sales of tangible personal property, or
prewritten computer software delivered electronically
or by load and leave, and/or package tour
and scenic and sightseeing transportation services, 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 air space above
this state, display cards and posters on common
carriers or any other means of public conveyance
incorporated or operating 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.
44-18-25.
Presumption that sale is for storage, use, or consumption -- Resale
certificate. -- It is presumed that all gross receipts are subject to the sales tax,
and that the use of
all tangible personal property, or prewritten
computer software delivered electronically or by load
and leave, and/or package tour and scenic and sightseeing
transportation services are is
subject to
the use tax, and that all tangible personal property,
or prewritten computer software delivered
electronically or by load and leave, and/or package
tour and scenic and sightseeing transportation
services
sold or in processing or intended for delivery or delivered in this state is
sold or delivered
for storage, use, or other consumption in this state,
until the contrary is established to the
satisfaction of the tax administrator. The burden of
proving the contrary is upon the person who
makes the sale and the purchaser, unless the person
who makes the sale takes from the purchaser
a certificate to the effect that the purchase was for
resale. The certificate shall contain any
information and be in the form that the tax
administrator may require.
44-18-30. Gross
receipts exempt from sales and use taxes. -- There are exempted from
the taxes imposed by this chapter the following gross
receipts:
(1) Sales and uses
beyond constitutional power of state. - From the sale and from the
storage, use, or other consumption in this state of
tangible personal property the gross receipts
from the sale of which, or the storage, use, or other
consumption of which, this state is prohibited
from taxing under the Constitution of the
(2) Newspapers.
(i)
From the sale and from the storage, use, or other consumption in this state of
any
newspaper.
(ii)
"Newspaper" means an unbound publication printed on newsprint, which
contains
news, editorial comment, opinions, features,
advertising matter, and other matters of public
interest.
(iii)
"Newspaper" does not include a magazine, handbill, circular, flyer,
sales catalog, or
similar item unless the item is printed for and
distributed as a part of a newspaper.
(3) School meals. -
From the sale and from the storage, use, or other consumption in this
state of meals served by public, private, or parochial
schools, school districts, colleges,
universities, student organizations, and parent
teacher associations to the students or teachers of a
school, college, or university whether the meals are
served by the educational institutions or by a
food service or management entity under contract to
the educational institutions.
(4) Containers.
(i)
From the sale and from the storage, use, or other consumption in this state of:
(A) Non-returnable
containers, including boxes, paper bags, and wrapping materials
which are biodegradable and all bags and wrapping
materials utilized in the medical and healing
arts, when sold without the contents to persons who
place the contents in the container and sell
the contents with the container.
(B) Containers when
sold with the contents if the sale price of the contents is not
required to be included in the measure of the taxes
imposed by this chapter.
(C) Returnable
containers when sold with the contents in connection with a retail sale of
the contents or when resold for refilling.
(ii) As used in this
subdivision, the term "returnable containers" means containers of a
kind customarily returned by the buyer of the contents
for reuse. All other containers are "non-
returnable containers."
(5) (i) Charitable, educational, and religious organizations. -
From the sale to as in
defined in this section, and from the storage, use,
and other consumption in this state or any other
state of the
profit, "educational institutions" as
defined in subdivision (18) not operated for a profit, churches,
orphanages, and other institutions or organizations
operated exclusively for religious or charitable
purposes, interest free loan associations not operated
for profit, nonprofit organized sporting
leagues and associations and bands for boys and girls
under the age of nineteen (19) years, the
following vocational student organizations that are
state chapters of national vocational students
organizations: Distributive Education Clubs of
America, (DECA); Future Business Leaders of
of America/Home Economics Related Occupations (FHA/HERD);
and Vocational Industrial
Clubs of America (VICA), organized nonprofit golden
age and senior citizens clubs for men and
women, and parent teacher associations.
(ii) In the case of contracts
entered into with the federal government, its agencies or
instrumentalities, this state or any other state of
the
city, town, district, or other political subdivision
of the states, hospitals not operated for profit,
educational institutions not operated for profit,
churches, orphanages, and other institutions or
organizations operated exclusively for religious or
charitable purposes, the contractor may
purchase such materials and supplies (materials and/or
supplies are defined as those which are
essential to the project) that are to be utilized in
the construction of the projects being performed
under the contracts without payment of the tax.
(iii) The contractor
shall not charge any sales or use tax to any exempt agency,
institution, or organization but shall in that
instance provide his or her suppliers with certificates
in the form as determined by the division of taxation
showing the reason for exemption; and the
contractor's records must substantiate the claim for
exemption by showing the disposition of all
property so purchased. If any property is then used
for a nonexempt purpose, the contractor must
pay the tax on the property used.
(6) Gasoline. - From
the sale and from the storage, use, or other consumption in this state
of: (i) gasoline and other
products taxed under chapter 36 of title 31, and (ii) fuels used for the
propulsion of airplanes.
(7) Purchase for
manufacturing purposes.
(i)
From the sale and from the storage, use, or other consumption in this state of
computer software, tangible personal property,
electricity, natural gas, artificial gas, steam,
refrigeration, and water, when the property or service
is purchased for the purpose of being
manufactured into a finished product for resale, and
becomes an ingredient, component, or
integral part of the manufactured, compounded,
processed, assembled, or prepared product, or if
the property or service is consumed in the process of
manufacturing for resale computer software,
tangible personal property, electricity, natural gas,
artificial gas, steam, refrigeration, or water.
(ii)
"Consumed" means destroyed, used up, or worn out to the degree or
extent that the
property cannot be repaired, reconditioned, or
rendered fit for further manufacturing use.
(iii)
"Consumed" includes mere obsolescence.
(iv)
"Manufacturing" means and includes manufacturing, compounding,
processing,
assembling, preparing, or producing.
(v) "Process of manufacturing"
means and includes all production operations performed
in the producing or processing room, shop, or plant,
insofar as the operations are a part of and
connected with the manufacturing for resale of
tangible personal property, electricity, natural gas,
artificial gas, steam, refrigeration, or water and all
production operations performed insofar as the
operations are a part of and connected with the
manufacturing for resale of computer software.
(vi) "Process of
manufacturing" does not mean or include administration operations such
as general office operations, accounting, collection,
sales promotion, nor does it mean or include
distribution operations which occur subsequent to
production operations, such as handling,
storing, selling, and transporting the manufactured
products, even though the administration and
distribution operations are performed by or in
connection with a manufacturing business.
(8) State and political
subdivisions. - From the sale to, and from the storage, use, or other
consumption by, this state, any city, town, district,
or other political subdivision of this state.
Every redevelopment agency created pursuant to chapter
31 of title 45 is deemed to be a
subdivision of the municipality where it is located.
(9) Food and food
ingredients. - From the sale and storage, use, or other consumption in
this state of food and food ingredients as defined in
section 44-18-7.1(l).
For the purposes of
this exemption "food and food ingredients" shall not include candy,
soft drinks, dietary supplements, alcoholic beverages,
tobacco, food sold through vending
machines or prepared food (as those terms are defined
in section 44-18-7.1, unless the prepared
food is:
(i)
Sold by a seller whose primary NAICS classification is manufacturing in sector
311,
except sub-sector 3118 (bakeries);
(ii) Sold in an
unheated state by weight or volume as a single item;
(iii) Bakery items,
including bread, rolls, buns, biscuits, bagels, croissants, pastries,
donuts, danish, cakes,
tortes, pies, tarts, muffins, bars, cookies, tortillas; and
is not sold with
utensils provided by the seller, including plates, knives, forks, spoons,
glasses, cups, napkins, or straws.
(10) Medicines, drugs and
durable medical equipment. - From the sale and from the
storage, use, or other consumption in this state, of;
(i)
"Drugs" as defined in section 44-18-7.1(h)(i),
sold on prescriptions, medical oxygen,
and insulin whether or not sold on prescription,
and over-the-counter drugs as defined in section
44-18-7.1(h)(ii). For purposes of this exemption over-the-counter drugs shall
not include over-
the-counter drugs and grooming and hygiene products as defined in section
44-18-7.1(h)(iii).
(ii) Durable medical
equipment as defined in section 44-18-7.1(k) for home use only,
including, but not limited to, syringe infusers,
ambulatory drug delivery pumps, hospital beds,
convalescent chairs, and chair lifts. Supplies used in
connection with syringe infusers and
ambulatory drug delivery pumps which are sold on
prescription to individuals to be used by them
to dispense or administer prescription drugs, and
related ancillary dressings and supplies used to
dispense or administer prescription drugs shall also
be exempt from tax.
(11) Prosthetic devices
and mobility enhancing equipment. - From the sale and from the
storage, use, or other consumption in this state, of
prosthetic devices as defined in section 44-18-
7.1(t), sold on prescription, including but not
limited to, artificial limbs, dentures, spectacles and
eyeglasses, and artificial eyes; artificial hearing
devices and hearing aids, whether or not sold on
prescription and mobility enhancing equipment as
defined in section 44-18-7.1(p) including
wheelchairs, crutches and canes.
(12) Coffins, caskets,
and burial garments. - From the sale and from the storage, use, or
other consumption in this state of coffins or caskets,
and shrouds or other burial garments which
are ordinarily sold by a funeral director as part of
the business of funeral directing.
(13) Motor vehicles
sold to nonresidents.
(i)
From the sale, subsequent to June 30, 1958, of a motor vehicle to a bona fide
nonresident of this state who does not register the
motor vehicle in this state, whether the sale or
delivery of the motor vehicle is made in this state or
at the place of residence of the nonresident.
A motor vehicle sold to a bona fide nonresident whose
state of residence does not allow a like
exemption to its nonresidents is not exempt from the
tax imposed under section 44-18-20. In that
event the bona fide nonresident pays a tax to
that would be imposed in his or her state of residence
not to exceed the rate that would have been
imposed under section 44-18-20. Notwithstanding any
other provisions of law, a licensed motor
vehicle dealer shall add and collect the tax required
under this subdivision and remit the tax to the
tax administrator under the provisions of chapters 18
and 19 of this title. When a
licensed motor vehicle dealer is required to add and
collect the sales and use tax on the sale of a
motor vehicle to a bona fide nonresident as provided
in this section, the dealer in computing the
tax takes into consideration the law of the state of
the nonresident as it relates to the trade-in of
motor vehicles.
(ii) The tax
administrator, in addition to the provisions of sections 44-19-27 and 44-19-
28, may require any licensed motor vehicle dealer to
keep records of sales to bona fide
nonresidents as the tax administrator deems reasonably
necessary to substantiate the exemption
provided in this subdivision, including the affidavit
of a licensed motor vehicle dealer that the
purchaser of the motor vehicle was the holder of, and
had in his or her possession a valid out of
state motor vehicle registration or a valid out of
state driver's license.
(iii) Any nonresident
who registers a motor vehicle in this state within ninety (90) days
of the date of its sale to him or her is deemed to
have purchased the motor vehicle for use,
storage, or other consumption in this state, and is
subject to, and liable for the use tax imposed
under the provisions of section 44-18-20.
(14) Sales in public
buildings by blind people. - From the sale and from the storage, use,
or other consumption in all public buildings in this
state of all products or wares by any person
licensed under section 40-9-11.1.
(15) Air and water
pollution control facilities. - From the sale, storage, use, or other
consumption in this state of tangible personal
property or supplies acquired for incorporation into
or used and consumed in the operation of a facility,
the primary purpose of which is to aid in the
control of the pollution or contamination of the
waters or air of the state, as defined in chapter 12
of title 46 and chapter 25 of title 23, respectively,
and which has been certified as approved for
that purpose by the director of environmental
management. The director of environmental
management may certify to a portion of the tangible
personal property or supplies acquired for
incorporation into those facilities or used and
consumed in the operation of those facilities to the
extent that that portion has as its primary purpose
the control of the pollution or contamination of
the waters or air of this state. As used in this
subdivision, "facility" means any land, facility,
device, building, machinery, or equipment.
(16) Camps. - From the
rental charged for living quarters, or sleeping or housekeeping
accommodations at camps or retreat houses operated by
religious, charitable, educational, or
other organizations and associations mentioned in
subdivision (5), or by privately owned and
operated summer camps for children.
(17) Certain
institutions. - From the rental charged for living or sleeping quarters in an
institution licensed by the state for the
hospitalization, custodial, or nursing care of human beings.
(18) Educational
institutions. - From the rental charged by any educational institution for
living quarters, or sleeping or housekeeping
accommodations or other rooms or accommodations
to any student or teacher necessitated by attendance
at an educational institution. "Educational
institution" as used in this section means an
institution of learning not operated for profit which is
empowered to confer diplomas, educational, literary,
or academic degrees, which has a regular
faculty, curriculum, and organized body of pupils or
students in attendance throughout the usual
school year, which keeps and furnishes to students and
others records required and accepted for
entrance to schools of secondary, collegiate, or
graduate rank, no part of the net earnings of which
inures to the benefit of any individual.
(19) Motor vehicle and
adaptive equipment for persons with disabilities.
(i)
From the sale of: (A) special adaptations, (B) the component parts of the
special
adaptations, or (C) a specially adapted motor vehicle;
provided, that the owner furnishes to the
tax administrator an affidavit of a licensed physician
to the effect that the specially adapted motor
vehicle is necessary to transport a family member with
a disability or where the vehicle has been
specially adapted to meet the specific needs of the
person with a disability. This exemption
applies to not more than one motor vehicle owned and
registered for personal, noncommercial
use.
(ii) For the purpose of
this subsection the term "special adaptations" includes, but is not
limited to: wheelchair lifts; wheelchair carriers;
wheelchair ramps; wheelchair securements; hand
controls; steering devices; extensions, relocations,
and crossovers of operator controls; power-
assisted controls; raised tops or dropped floors;
raised entry doors; or alternative signaling
devices to auditory signals.
(iii) From the sale of:
(a) special adaptations, (b) the component parts of the special
adaptations, for a "wheelchair accessible
taxicab" as defined in section 39-14-1 and/or a
"wheelchair accessible public motor vehicle"
as defined in section 39-14.1-1.
(iv) For the purpose of
this subdivision the exemption for a "specially adapted motor
vehicle" means a use tax credit not to exceed the
amount of use tax that would otherwise be due
on the motor vehicle, exclusive of any adaptations.
The use tax credit is equal to the cost of the
special adaptations, including installation.
(20) Heating fuels. -
From the sale and from the storage, use, or other consumption in
this state of every type of fuel used in the heating
of homes and residential premises.
(21) Electricity and
gas. - From the sale and from the storage, use, or other consumption
in this state of electricity and gas furnished for
domestic use by occupants of residential premises.
(22) Manufacturing
machinery and equipment.
(i)
From the sale and from the storage, use, or other consumption in this state of
tools,
dies, and molds, and machinery and equipment
(including replacement parts), and related items to
the extent used in an industrial plant in connection
with the actual manufacture, conversion, or
processing of tangible personal property, or to the
extent used in connection with the actual
manufacture, conversion or processing of computer
software as that term is utilized in industry
numbers 7371, 7372, and 7373 in the standard
industrial classification manual prepared by the
technical committee on industrial classification,
office of statistical standards, executive office of
the president,
machinery and equipment used in the furnishing of
power to an industrial manufacturing plant.
For the purposes of this subdivision, "industrial
plant" means a factory at a fixed location
primarily engaged in the manufacture, conversion, or
processing of tangible personal property to
be sold in the regular course of business;
(ii) Machinery and
equipment and related items are not deemed to be used in connection
with the actual manufacture, conversion, or processing
of tangible personal property, or in
connection with the actual manufacture, conversion or
processing of computer software as that
term is utilized in industry numbers 7371, 7372, and
7373 in the standard industrial classification
manual prepared by the technical committee on
industrial classification, office of statistical
standards, executive office of the president,
time to time, to be sold to the extent the property is
used in administration or distribution
operations;
(iii) Machinery and
equipment and related items used in connection with the actual
manufacture, conversion, or processing of any computer
software or any tangible personal
property which is not to be sold and which would be
exempt under subdivision (7) or this
subdivision if purchased from a vendor or machinery
and equipment and related items used
during any manufacturing, converting or processing
function is exempt under this subdivision
even if that operation, function, or purpose is not an
integral or essential part of a continuous
production flow or manufacturing process;
(iv) Where a portion of
a group of portable or mobile machinery is used in connection
with the actual manufacture, conversion, or processing
of computer software or tangible personal
property to be sold, as previously defined, that
portion, if otherwise qualifying, is exempt under
this subdivision even though the machinery in that
group is used interchangeably and not
otherwise identifiable as to use.
(23) Trade-in value of
motor vehicles. - From the sale and from the storage, use, or other
consumption in this state of so much of the purchase
price paid for a new or used automobile as is
allocated for a trade-in allowance on the automobile
of the buyer given in trade to the seller or of
the proceeds applicable only to the motor vehicle as
are received from an insurance claim as a
result of a stolen or damaged motor vehicle, or of the proceeds applicable only to the automobile
as are received from the manufacturer of automobiles
for the repurchase of the automobile
whether the repurchase was voluntary or not towards
the purchase of a new or used automobile
by the buyer; provided, that the proceeds from an
insurance claim or repurchase is in lieu of the
benefit prescribed in section 44-18-21 for the total
loss or destruction of the automobile; and
provided, further, that the tax has not been
reimbursed as part of the insurance claim or
repurchase.
For the purpose of this subdivision, the word "automobile" means a
private passenger
automobile not used for hire and does not refer to any
other type of motor vehicle.
(24) Precious metal
bullion.
(i)
From the sale and from the storage, use, or other consumption in this state of
precious
metal bullion, substantially equivalent to a
transaction in securities or commodities.
(ii) For purposes of
this subdivision, "precious metal bullion" means any elementary
precious metal which has been put through a process of
smelting or refining, including, but not
limited to, gold, silver, platinum, rhodium, and
chromium, and which is in a state or condition
that its value depends upon its content and not upon
its form.
(iii) The term does not
include fabricated precious metal which has been processed or
manufactured for some one or more specific and
customary industrial, professional, or artistic
uses.
(25) Commercial
vessels. - From sales made to a commercial ship, barge, or other vessel
of fifty (50) tons burden or over, primarily engaged
in interstate or foreign commerce, and from
the repair, alteration, or conversion of the vessels,
and from the sale of property purchased for the
use of the vessels including provisions, supplies, and
material for the maintenance and/or repair
of the vessels.
(26) Commercial fishing
vessels. - From the sale and from the storage, use, or other
consumption in this state of vessels and other water
craft which are in excess of five (5) net tons
and which are used exclusively for "commercial
fishing", as defined in this subdivision, and from
the repair, alteration, or conversion of those vessels
and other watercraft, and from the sale of
property purchased for the use of those vessels and
other watercraft including provisions,
supplies, and material for the maintenance and/or
repair of the vessels and other watercraft and
the boats nets, cables, tackle, and other fishing
equipment appurtenant to or used in connection
with the commercial fishing of the vessels and other
watercraft. "Commercial fishing" means the
taking or the attempting to take any fish, shellfish, crustacea, or bait species with the intent of
disposing of them for profit or by sale, barter,
trade, or in commercial channels. The term does
not include subsistence fishing, i.e., the taking for
personal use and not for sale or barter; or sport
fishing; but shall include vessels and other watercraft
with a
license issued by the department of environmental
management pursuant to section 20-2-27.1
which meet the following criteria: (i) the operator must have a current U.S.C.G. license to
carry
passengers for hire; (ii) U.S.C.G. vessel
documentation in the coast wide fishery trade; (iii)
U.S.C.G. vessel documentation as to proof of
boat registration to prove
commercial passenger carrying fishing vessel to carry
passengers for fishing. The vessel must be
able to demonstrate that at least fifty percent (50%)
of its annual gross income derives from
charters or provides documentation of a minimum of one
hundred (100) charter trips annually; (v)
the vessel must have a valid
shall implement the provisions of this subdivision by
promulgating rules and regulations relating
thereto.
(27) Clothing and
footwear. - From the sales of articles of clothing, including footwear,
intended to be worn or carried on or about the human
body. For the purposes of this section,
"clothing or footwear" does not include
clothing accessories or equipment or special clothing or
footwear primarily designed for athletic activity or
protective use as these terms are defined in
section 44-18-7.1(f).
(28) Water for
residential use. - From the sale and from the storage, use, or other
consumption in this state of water furnished for
domestic use by occupants of residential
premises.
(29) Bibles. -
[Unconstitutional; see Ahlburn v.
Notes to Decisions.]From the sale and from the
storage, use, or other consumption in the state of
any canonized scriptures of any tax-exempt nonprofit
religious organization including, but not
limited to, the Old Testament and the New Testament
versions.
(30) Boats.
(i)
From the sale of a boat or vessel to a bona fide nonresident of this state who
does not
register the boat or vessel in this state, or document
the boat or vessel with the
government at a home port within the state, whether
the sale or delivery of the boat or vessel is
made in this state or elsewhere; provided, that the
nonresident transports the boat within thirty
(30) days after delivery by the seller outside the
state for use thereafter solely outside the state.
(ii) The tax
administrator, in addition to the provisions of sections 44-19-17 and 44-19-
28, may require the seller of the boat or vessel to
keep records of the sales to bona fide
nonresidents as the tax administrator deems reasonably
necessary to substantiate the exemption
provided in this subdivision, including the affidavit
of the seller that the buyer represented
himself or herself to be a bona fide nonresident of
this state and of the buyer that he or she is a
nonresident of this state.
(31) Youth activities
equipment. - From the sale, storage, use, or other consumption in
this state of items for not more than twenty dollars
($20.00) each by nonprofit
eleemosynary organizations, for the purposes of youth
activities which the organization is formed
to sponsor and support; and by accredited elementary
and secondary schools for the purposes of
the schools or of organized activities of the enrolled
students.
(32) Farm equipment. -
From the sale and from the storage or use of machinery and
equipment used directly for commercial farming and
agricultural production; including, but not
limited to, tractors, ploughs, harrows, spreaders,
seeders, milking machines, silage conveyors,
balers, bulk milk storage tanks, trucks with farm
plates, mowers, combines, irrigation equipment,
greenhouses and greenhouse coverings, graders and
packaging machines, tools and supplies and
other farming equipment, including replacement parts,
appurtenant to or used in connection with
commercial farming and tools and supplies used in the
repair and maintenance of farming
equipment. "Commercial farming" means the
keeping or boarding of five (5) or more horses or
the production within this state of agricultural
products, including, but not limited to, field or
orchard crops, livestock, dairy, and poultry, or their
products, where the keeping, boarding, or
production provides at least two thousand five hundred
dollars ($2,500) in annual gross sales to
the operator, whether an individual, a group, a
partnership, or a corporation for exemptions issued
prior to July 1, 2002; for exemptions issued or
renewed after July 1, 2002, there shall be two (2)
levels. Level I shall be based on proof of annual
gross sales from commercial farming of at least
twenty-five hundred dollars ($2,500) and shall be
valid for purchases subject to the exemption
provided in this subdivision except for motor vehicles
with an excise tax value of five thousand
dollars ($5,000) or greater; Level II shall be based
on proof of annual gross sales from
commercial farming of at least ten thousand dollars
($10,000) or greater and shall be valid for
purchases subject to the exemption provided in this
subdivision including motor vehicles with an
excise tax value of five thousand dollars ($5,000) or
greater. For the initial issuance of the
exemptions, proof of the requisite amount of annual
gross sales from commercial farming shall be
required for the prior year; for any renewal of an
exemption granted in accordance with this
subdivision at either Level I or Level II, proof of
gross annual sales from commercial farming at
the requisite amount shall be required for each of the
prior two (2) years. Certificates of
exemption issued or renewed after July 1, 2002, shall
clearly indicate the level of the exemption
and be valid for four (4) years after the date of
issue. This exemption applies even if the same
equipment is used for ancillary uses, or is
temporarily used for a non-farming or a non-
agricultural purpose, but shall not apply to motor
vehicles acquired after July 1, 2002, unless the
vehicle is a farm vehicle as defined pursuant to
section 31-1-8 and is eligible for registration
displaying farm plates as provided for in section
31-3-31.
(33) Compressed air. -
From the sale and from the storage, use, or other consumption in
the state of compressed air.
(34) Flags. - From the
sale and from the storage, consumption, or other use in this state
of
(35) Motor vehicle and
adaptive equipment to certain veterans. - From the sale of a
motor vehicle and adaptive equipment to and for the
use of a veteran with a service-connected
loss of or the loss of use of a leg, foot, hand, or
arm, or any veteran who is a double amputee,
whether service connected or not. The motor vehicle
must be purchased by and especially
equipped for use by the qualifying veteran.
Certificate of exemption or refunds of taxes paid is
granted under rules or regulations that the tax
administrator may prescribe.
(36) Textbooks. - From
the sale and from the storage, use, or other consumption in this
state of textbooks by an "educational
institution" as defined in subdivision (18) of this section and
as well as any educational institution within the
purview of section 16-63-9(4) and used textbooks
by any purveyor.
(37) Tangible personal
property and supplies used in on-site hazardous waste recycling,
reuse, or treatment. - From the sale, storage, use, or
other consumption in this state of tangible
personal property or supplies used or consumed in the
operation of equipment, the exclusive
function of which is the recycling, reuse, or recovery
of materials (other than precious metals, as
defined in subdivision (24)(ii) of this section) from
the treatment of "hazardous wastes", as
defined in section 23-19.1-4, where the
"hazardous wastes" are generated in
by the same taxpayer and where the personal property
is located at, in, or adjacent to a generating
facility of the taxpayer in
the department of environmental management certifying
that the equipment and/or supplies as
used, or consumed, qualify for the exemption under
this subdivision. If any information relating
to secret processes or methods of manufacture,
production, or treatment is disclosed to the
department of environmental management only to procure
an order, and is a "trade secret" as
defined in section 28-21-10(b), it is not open to
public inspection or publicly disclosed unless
disclosure is required under chapter 21 of title 28 or
chapter 24.4 of title 23.
(38) Promotional and
product literature of boat manufacturers. - From the sale and from
the storage, use, or other consumption of promotional
and product literature of boat
manufacturers shipped to points outside of Rhode
Island which either: (i) accompany the product
which is sold, (ii) are shipped in bulk to out of
state dealers for use in the sale of the product, or
(iii) are mailed to customers at no charge.
(39) Food items paid
for by food stamps. - From the sale and from the storage, use, or
other consumption in this state of eligible food items
payment for which is properly made to the
retailer in the form of
Act of 1977, 7 U.S.C. section 2011 et seq.
(40) Transportation
charges. - From the sale or hiring of motor carriers as defined in
section 39-12-2(l) to haul goods, when the contract or
hiring cost is charged by a motor freight
tariff filed with the
the number of hours spent on the job.
(41) Trade-in value of
boats. - From the sale and from the storage, use, or other
consumption in this state of so much of the purchase
price paid for a new or used boat as is
allocated for a trade-in allowance on the boat of the
buyer given in trade to the seller or of the
proceeds applicable only to the boat as are received
from an insurance claim as a result of a stolen
or damaged boat, towards the purchase of a new or used
boat by the buyer.
(42) Equipment used for
research and development. - From the sale and from the
storage, use, or other consumption of equipment to the
extent used for research and development
purposes by a qualifying firm. For the purposes of
this subdivision, "qualifying firm" means a
business for which the use of research and development
equipment is an integral part of its
operation, and "equipment" means scientific
equipment, computers, software, and related items.
(43) Coins. - From the
sale and from the other consumption in this state of coins having
numismatic or investment value.
(44) Farm structure
construction materials. - Lumber, hardware and other materials used
in the new construction of farm structures, including
production facilities such as, but not limited
to, farrowing sheds, free
stall and stanchion barns, milking parlors, silos, poultry barns, laying
houses, fruit and vegetable storages, rooting cellars,
propagation rooms, greenhouses, packing
rooms, machinery storage, seasonal farm worker
housing, certified farm markets, bunker and
trench silos, feed storage sheds, and any other
structures used in connection with commercial
farming.
(45) Telecommunications
carrier access service. - Carrier access service or
telecommunications service when purchased by a
telecommunications company from another
telecommunications company to facilitate the provision
of telecommunications service.
(46) Boats or vessels
brought into the state exclusively for winter storage, maintenance,
repair or sale. - Notwithstanding the provisions of
sections 44-18-10, 44-18-11, 44-18-20, the tax
imposed by section 44-18-20 is not applicable for the
period commencing on the first day of
October in any year to and including the 30th day of
April next succeeding with respect to the use
of any boat or vessel within this state exclusively
for purposes of: (i) delivery of the vessel to a
facility in this state for storage, including dry
storage and storage in water by means of apparatus
preventing ice damage to the hull, maintenance, or
repair; (ii) the actual process of storage,
maintenance, or repair of the boat or vessel; or (iii)
storage for the purpose of selling the boat or
vessel.
(47) Jewelry display
product. - From the sale and from the storage, use, or other
consumption in this state of tangible personal property
used to display any jewelry product;
provided, that title to the jewelry display product is
transferred by the jewelry manufacturer or
seller and that the jewelry display product is shipped
out of state for use solely outside the state
and is not returned to the jewelry manufacturer or
seller.
(48) Boats or vessels
generally. - Notwithstanding the provisions of this chapter, the tax
imposed by sections 44-18-20 and 44-18-18 shall not
apply with respect to the sale and to the
storage, use, or other consumption in this state of
any new or used boat. The exemption provided
for in this subdivision does not apply after October
1, 1993, unless prior to October 1, 1993, the
federal ten percent (10%) surcharge on luxury boats is
repealed.
(49) Banks and
Regulated investment companies interstate toll-free calls. -
Notwithstanding the provisions of this chapter, the
tax imposed by this chapter does not apply to
the furnishing of interstate and international,
toll-free terminating telecommunication service that
is used directly and exclusively by or for the benefit
of an eligible company as defined in this
subdivision; provided, that an eligible company
employs on average during the calendar year no
less than five hundred (500) "full-time
equivalent employees", as that term is defined in section
42-64.5-2. For purposes of this section, an
"eligible company" means a "regulated investment
company" as that term is defined in the Internal
Revenue Code of 1986, 26 U.S.C. section 1 et
seq., or a corporation to the extent the service is
provided, directly or indirectly, to or on behalf of
a regulated investment company, an employee benefit
plan, a retirement plan or a pension plan or
a state chartered bank.
(50) Mobile and manufactured
homes generally. - From the sale and from the storage,
use, or other consumption in this state of mobile
and/or manufactured homes as defined and
subject to taxation pursuant to the provisions of
chapter 44 of title 31.
(51) Manufacturing
business reconstruction materials.
(i)
From the sale and from the storage, use or other consumption in this state of
lumber,
hardware, and other building materials used in the
reconstruction of a manufacturing business
facility which suffers a disaster, as defined in this
subdivision, in this state. "Disaster" means any
occurrence, natural or otherwise, which results in the
destruction of sixty percent (60%) or more
of an operating manufacturing business facility within
this state. "Disaster" does not include any
damage resulting from the willful act of the owner of
the manufacturing business facility.
(ii) Manufacturing
business facility includes, but is not limited to, the structures housing
the production and administrative facilities.
(iii) In the event a
manufacturer has more than one manufacturing site in this state, the
sixty percent (60%) provision applies to the damages
suffered at that one site.
(iv) To the extent that
the costs of the reconstruction materials are reimbursed by
insurance, this exemption does not apply.
(52) Tangible personal
property and supplies used in the processing or preparation of
floral products and floral arrangements. - From the
sale, storage, use, or other consumption in this
state of tangible personal property or supplies
purchased by florists, garden centers, or other like
producers or vendors of flowers, plants, floral
products, and natural and artificial floral
arrangements which are ultimately sold with flowers,
plants, floral products, and natural and
artificial floral arrangements or are otherwise used
in the decoration, fabrication, creation,
processing, or preparation of flowers, plants, floral
products, or natural and artificial floral
arrangements, including descriptive labels, stickers,
and cards affixed to the flower, plant, floral
product or arrangement, artificial flowers, spray
materials, floral paint and tint, plant shine, flower
food, insecticide and fertilizers.
(53) Horse food
products. - From the sale and from the storage, use, or other
consumption in this state of horse food products
purchased by a person engaged in the business of
the boarding of horses.
(54) Non-motorized
recreational vehicles sold to nonresidents.
(i)
From the sale, subsequent to June 30, 2003, of a non-motorized recreational
vehicle to
a bona fide nonresident of this state who does not
register the non-motorized recreational vehicle
in this state, whether the sale or delivery of the
non-motorized recreational vehicle is made in this
state or at the place of residence of the nonresident;
provided, that a non-motorized recreational
vehicle sold to a bona fide nonresident whose state of
residence does not allow a like exemption
to its nonresidents is not exempt from the tax imposed
under section 44-18-20; provided, further,
that in that event the bona fide nonresident pays a
tax to
to the rate that would be imposed in his or her state
of residence not to exceed the rate that would
have been imposed under section 44-18-20.
Notwithstanding any other provisions of law, a
licensed non-motorized recreational vehicle dealer
shall add and collect the tax required under
this subdivision and remit the tax to the tax
administrator under the provisions of chapters 18 and
19 of this title. Provided, that when a
dealer is required to add and collect the sales and
use tax on the sale of a non-motorized
recreational vehicle to a bona fide nonresident as
provided in this section, the dealer in computing
the tax takes into consideration the law of the state
of the nonresident as it relates to the trade-in
of motor vehicles.
(ii) The tax
administrator, in addition to the provisions of sections 44-19-27 and 44-19-
28, may require any licensed non-motorized
recreational vehicle dealer to keep records of sales to
bona fide nonresidents as the tax administrator deems
reasonably necessary to substantiate the
exemption provided in this subdivision, including the
affidavit of a licensed non-motorized
recreational vehicle dealer that the purchaser of the
non-motorized recreational vehicle was the
holder of, and had in his or her possession a valid
out-of-state non-motorized recreational vehicle
registration or a valid out-of-state driver's license.
(iii) Any nonresident
who registers a non-motorized recreational vehicle in this state
within ninety (90) days of the date of its sale to him
or her is deemed to have purchased the non-
motorized recreational vehicle for use, storage, or
other consumption in this state, and is subject
to, and liable for the use tax imposed under the
provisions of section 44-18-20.
(iv)
"Non-motorized recreational vehicle" means any portable dwelling
designed and
constructed to be used as a temporary dwelling for
travel, camping, recreational, and vacation use
which is eligible to be registered for highway use,
including, but not limited to, "pick-up coaches"
or "pick-up campers," "travel
trailers," and "tent trailers" as those terms are defined in
chapter 1
of title 31.
(55) Sprinkler and fire
alarm systems in existing buildings. - From the sale in this state of
sprinkler and fire alarm systems, emergency lighting
and alarm systems, and from the sale of the
materials necessary and attendant to the installation
of those systems, that are required in
buildings and occupancies existing therein in July
2003, in order to comply with any additional
requirements for such buildings arising directly from
the enactment of the Comprehensive Fire
Safety Act of 2003, and that are not required by any
other provision of law or ordinance or
regulation adopted pursuant to that Act. The exemption
provided in this subdivision shall expire
on December 31, 2008.
(56) Aircraft. -
Notwithstanding the provisions of this chapter, the tax imposed by
sections 44-18-18 and 44-18-20 shall not apply with
respect to the sale and to the storage, use, or
other consumption in this state of any new or used
aircraft or aircraft parts.
(57) Renewable energy
products. - Notwithstanding any other provisions of Rhode
Island general laws the following products shall also
be exempt from sales tax: solar photovoltaic
modules or panels, or any module or panel that
generates electricity from light; solar thermal
collectors, including, but not limited to, those
manufactured with flat glass plates, extruded
plastic, sheet metal, and/or evacuated tubes;
geothermal heat pumps, including both water-to-
water and water-to-air type pumps; wind turbines;
towers used to mount wind turbines if
specified by or sold by a wind turbine manufacturer;
DC to AC inverters that interconnect with
utility power lines; manufactured mounting racks and
ballast pans for solar collector, module or
panel installation. Not to include materials that
could be fabricated into such racks; monitoring
and control equipment, if specified or supplied by a
manufacturer of solar thermal, solar
photovoltaic, geothermal, or wind energy systems or if
required by law or regulation for such
systems but not to include pumps, fans or plumbing or
electrical fixtures unless shipped from the
manufacturer affixed to, or an integral part of,
another item specified on this list; and solar storage
tanks that are part of a solar domestic hot water
system or a solar space heating system. If the tank
comes with an external heat exchanger it shall also be
tax exempt, but a standard hot water tank is
not exempt from state sales tax.
(58) Returned property.
- The amount charged for property returned by customers upon
rescission of the contract of sale when the entire
amount exclusive of handling charges paid for
the property is refunded in either cash or credit, and
where the property is returned within one
hundred twenty (120) days from the date of delivery.
(59) Dietary
Supplements. - From the sale and from the storage, use or other
consumption of dietary supplements as defined in
section 44-18-7.1(l)(v), sold on prescriptions.
(60) Blood. - From the
sale and from the storage, use or other consumption of human
blood.
(61) Prewritten
computer software delivered electronically. - From the sale and from the
storage, use or other consumption of prewritten
computer software delivered electronically or by
load and leave.
(62)(61)
Agricultural products for human consumption. - From the sale and from the
storage, use or other consumption of livestock and
poultry of the kinds of products of which
ordinarily constitute food for human consumption and
of livestock of the kind the products of
which ordinarily constitute fibers for human use.
(63)(62)
Diesel emission control technology. - From the sale and use of diesel retrofit
technology that is required by section 31-47.3-4 of
the general laws.
SECTION
25. Section 44-19-7 of the General Laws in Chapter 44-19 entitled "Sales
and
Use Taxes - Enforcement and
Collection" is hereby amended to read as follows:
44-19-7.
Registration of retailers. -- Every retailer selling tangible personal
property or
prewritten computer software delivered electronically
or by load and leave for storage,
use, or
other consumption in this state and/or package tour
and scenic and sightseeing transportation
services or
renting living quarters in any hotel, rooming house, or tourist camp in this
state must
register with the tax administrator and give the name
and address of all agents operating in this
state, the location of all distribution or sales
houses or offices, or of any hotel, rooming house, or
tourist camp or other places of business in this
state, and other information that the tax
administrator may require.
SECTION
26. Sections 44-18-18, 44-18-18.1 and 44-18-36.1 of the General Laws in
Chapter 44-18 entitled
"Sales and Use Taxes - Liability and Computation" are hereby amended
to
read as follows:
44-18-18. Sales
tax imposed. -- A tax is imposed upon sales at retail in this state
including charges for rentals of living quarters in
hotels, rooming houses, or tourist camps, at the
rate of six percent (6%) of the gross receipts of the
retailer from the sales or rental charges;
provided, that the tax imposed on charges for the
rentals applies only to the first period of not
exceeding thirty (30) consecutive calendar days of
each rental; provided, further, that for the
period commencing July 1, 1990, the tax rate is seven
percent (7%). The tax is paid to the tax
administrator by the retailer at the time and in the
manner provided. Excluded from this tax are
those living quarters in hotels, rooming houses, or
tourist camps for which the occupant has a
written lease for the living quarters which lease
covers a rental period of twelve (12) months or
more. In recognition of the work being performed by
the Streamlined Sales and Use Tax
Governing Board, upon any federal law which requires
remote sellers to collect and remit taxes,
effective the first (1st) day of the first (1st) state
fiscal quarter following the change, the rate
imposed under section 44-18-18 shall be six and
one-half percent (6.5%).
44-18-18.1. Local
meals and beverage tax. -- (a) There is hereby levied and imposed,
upon every purchaser of a meal and/or beverage, in
addition to all other taxes and fees now
imposed by law, a local meals and beverage tax upon
each and every meal and/or beverage sold
within the state of
prepared in the eating and/or drinking establishment
or not and whether consumed at the premises
or not, at a rate of one percent of the gross
receipts. The tax shall be paid to the tax administrator
by the retailer at the time and in the manner
provided.
(b) All sums received
by the division of taxation under this section as taxes, penalties or
forfeitures, interest, costs of suit and fines shall
be distributed at least quarterly, credited and paid
by the state treasurer to the city or town where the
meals and beverages are delivered.
(c) When used in this
section, the following words have the following meanings:
(1)
"Beverage" means all nonalcoholic beverages, as well as alcoholic
beverages, beer,
lager beer, ale, porter, wine, similar fermented malt
or vinous liquor.
(2) "Eating and/or
drinking establishments" mean and include restaurants, bars, taverns,
lounges, cafeterias, lunch counters, drive-ins,
roadside ice cream and refreshment stands, fish and
chip places, fried chicken places, pizzerias, food and
drink concessions, or similar facilities in
amusement parks, bowling alleys, clubs, caterers,
drive-in theatres, industrial plants, race tracks,
shore resorts or other locations, lunch carts, mobile
canteens and other similar vehicles, and other
like places of business which furnish or provide
facilities for immediate consumption of food at
tables, chairs or counters or from trays, plates, cups
or other tableware or in parking facilities
provided primarily for the use of patrons in consuming
products purchased at the location.
Ordinarily, eating establishments do not mean and
include food stores and supermarkets. Eating
establishments do not mean "vending
machines," a self-contained automatic device that dispenses
for sale foods, beverages, or confection products.
Retailers selling prepared foods in bulk either in
customer-furnished containers or in the seller's
containers, for example "Soup and Sauce"
establishments, are deemed to be selling prepared
foods ordinarily for immediate consumption
and, as such, are considered eating establishments.
(3) "Meal"
means any prepared food or beverage offered or held out for sale by an eating
and/or drinking establishment for the purpose of being
consumed by any person to satisfy the
appetite and which is ready for immediate consumption.
All such food and beverage, unless
otherwise specifically exempted or excluded herein
shall be included, whether intended to be
consumed on the seller's premises or elsewhere,
whether designated as breakfast, lunch, snack,
dinner, supper or by some other name, and without
regard to the manner, time or place of service.
(d) This local meals
and beverage tax shall be administered and collected by the division
of taxation and unless provided to the contrary in
this chapter, all of the administration,
collection, and other provisions of chapters 18 and 19
of this article apply.
In recognition of the
work being performed by the Streamlined Sales and Use Tax
Governing Board, upon any federal law which requires
remote sellers to collect and remit taxes,
effective the first (1st) day of the first (1st) state
fiscal quarter following the change, the rate
imposed under section 44-18-18.1 shall be one and
one-half percent (1.5%).
44-18-36.1. Hotel
tax. -- (a) There is imposed a hotel tax of five percent (5%) upon the
total consideration charged for occupancy of any space
furnished by any hotel in this state. The
hotel tax is in addition to any sales tax imposed.
This hotel tax is administered and collected by
the division of taxation and unless provided to the
contrary in this chapter, all the administration,
collection, and other provisions of chapters 18 and 19
of this title apply. Nothing in this chapter
shall be construed to limit the powers of the
convention authority of the city of
established pursuant to the provisions of chapter 84
of the public laws of 1980, except that
distribution of hotel tax receipts shall be made
pursuant to chapter 63.1 of title 42 rather than
chapter 84 of the public laws of 1980.
(b) There is hereby
levied and imposed, upon the total consideration charged for
occupancy of any space furnished by any hotel in this
state, in addition to all other taxes and fees
now imposed by law, a local hotel tax at a rate of one
percent (1%). The local hotel tax shall be
administered and collected in accordance with
subsection (a).
(c) All sums received
by the division of taxation from the local hotel tax, penalties or
forfeitures, interest, costs of suit and fines shall
be distributed at least quarterly, credited and paid
by the state treasurer to the city or town where the
space for occupancy that is furnished by the
hotel is located. Unless provided to the contrary in
this chapter, all of the administration,
collection, and other provisions of chapters 18 and 19
of this title shall apply.
(d) Notwithstanding the
provisions of subsection (a) of this section, the city of
shall have the authority to collect from hotels
located in the city of
subsection (a) of this section.
(1) Within ten (10)
days of collection of the tax, the city of
tax as provided in section 42-63.1-3. No later than
the first day of March and the first day of
September in each year in which the tax is collected,
the city of
division of taxation a report of the tax collected and
distributed during the six (6) month period
ending thirty (30) days prior to the reporting date.
(2) The city of
recover delinquent hotel taxes pursuant to chapter
44-19, and the amount of any hotel tax, penalty
and interest imposed by the city of
of the taxpayer.
In
recognition of the work being performed by the Streamlined Sales and Use Tax
Governing Board, upon
any federal law which requires remote sellers to collect and remit taxes,
effective the first
(1st) day of the first (1st) state fiscal quarter following the change, the
rate
imposed under section
44-18-36.1 (b) shall be one and one-half percent (1.5%).
SECTION
27. Sections 1 through 3, 5 through 11, and 14 through 20 shall take effect
upon passage. Sections 23
through 25 shall take effect on October 1, 2011. The remainder of the
Article shall take effect
on July 1, 2011.