ARTICLE
21 AS AMENDED
RELATING TO
TAXATION AND REVENUES
SECTION
1. Section 23-17-38.1 of the General Laws in Chapter 23-17 entitled
“Licensing of Health Care
Facilities” is hereby amended to read as follows:
23-17-38.1.
Hospitals – Licensing fee. -- (a) There is imposed a hospital
licensing fee at
the rate of 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 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44-50-11 [repealed].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)(a)
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accordance with section 44-50-11 [repealed].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.
(b) There is also
imposed a hospital licensing fee at the rate of five and thirty-five
hundredths percent (5.35%) upon the net patient
services revenue of every hospital for the
hospital's first fiscal year ending on or after
January 1, 2011, except that the license fee for all
hospitals located in
(37%). The discount for
the
Executive Office of Health and Human Services for the
purpose of pursuing a waiver of the
uniformity requirement for the hospital license fee.
This licensing fee shall be administered and
collected by the tax administrator, division of
taxation within the department of revenue, and all
the administration, collection and other provisions of
51 of title 44 shall apply. Every hospital
shall pay the licensing fee to the tax administrator on
or before July 15, 2013 and payments shall
be made by electronic transfer of monies to the
general treasurer and deposited to the general
fund. Every hospital shall, on or before June 17,
2013, make a return to the tax administrator
containing the correct computation of net patient
services revenue for the hospital fiscal year
ending September 30, 2011, 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, 2011 2012,
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
2. Title 44 of the General Laws entitled “TAXATION” is hereby amended by
adding thereto the
following chapter:
CHAPTER
44-6.4
2012
44-6.4-1. Short
title. -- This chapter shall be known as the "2012
Amnesty Act".
44-6.4-2.
Definitions. -- As used in this chapter, the following terms have
the meaning
ascribed to them in this section, except when the
context clearly indicates a different meaning:
(1) "Taxable
period" means any period for which a tax return is required by law to be
filed with the tax administrator;
(2)
"Taxpayer" means any person, corporation, or other entity subject to
any tax imposed
by any law of the state of
the tax administrator.
44-6.4-3.
Establishment of tax amnesty. -- (a) The tax administrator shall
establish a tax
amnesty program for all taxpayers owing any tax
imposed by reason of or pursuant to
authorization by any law of the state of
Amnesty tax return forms shall be prepared by the tax
administrator and shall provide that the
taxpayer clearly specify the tax due and the taxable
period for which amnesty is being sought by
the taxpayer.
(b) The amnesty
program shall be conducted for a seventy-five (75) day period ending on
November 15, 2012. The amnesty program shall provide
that, upon written application by a
taxpayer and payment by the taxpayer of all taxes and
interest due from the taxpayer to the state
of
administrator shall not seek to collect any penalties
which may be applicable and shall not seek
the civil or criminal prosecution of any taxpayer for
the taxable period for which amnesty has
been granted. Amnesty shall be granted only to those
taxpayers applying for amnesty during the
amnesty period who have paid the tax and interest due
upon filing the amnesty tax return, or who
have entered into an installment payment agreement for
reasons of financial hardship and upon
terms and conditions set by the tax administrator. In
the case of the failure of a taxpayer to pay
any installment due under the agreement, such an
agreement shall cease to be effective and the
balance of the amounts required to be paid thereunder shall be due immediately. Amnesty shall be
granted for only the taxable period specified in the application
and only if all amnesty conditions
are satisfied by the taxpayer.
(c) The provisions of
this section shall include a taxable period for which a bill or notice
of deficiency determination has been sent to the
taxpayer and a taxable period in which an audit
has been completed but has not yet been billed.
(d) Amnesty shall not
be granted to taxpayers who are under any criminal investigation or
are a party to any civil or criminal proceeding,
pending in any court of the
state of
collected by the tax administrator.
44-6.4-4. Interest
under tax amnesty. -- Notwithstanding any provision of law to the
contrary, interest on any taxes paid for periods
covered under the amnesty provisions of this
chapter shall be computed at the rate imposed under
section 44-1-7, reduced by twenty five
percent (25%).
44-6.4-5.
Appropriation. -- There is hereby appropriated, out of any money in
the
treasury not otherwise appropriated for the 2013
fiscal year, the sum of three hundred thousand
dollars ($300,000) to the division of taxation to
carry out the purposes of this chapter. The state
controller is hereby authorized and directed to draw
his or her orders upon the general treasurer
for the payment of the sum or so much thereof as may
be required from time to time and upon
receipt by him of properly authenticated vouchers.
44-6.4-6.
Implementation. -- Notwithstanding any provision of law to the
contrary, the
tax administrator may do all things necessary in order
to provide for the timely implementation of
this chapter, including, but not limited to,
procurement of printing and other services and
expenditure of appropriated funds as provided for in
section 44-6.4-5.
44-6.4-7.
Disposition of monies. -- (a) Except as provided in subsection (b)
within, all
monies collected pursuant to any tax imposed by the
state of
this chapter shall be accounted for separately and
paid into the general fund.
(b) Monies collected
for the establishment of the TDI Reserve Fund (section 28-39-7),
the Employment Security Fund (section 28-42-18), the
Employment Security Interest Fund
(section 28-42-75), the Job Development Fund (section
28-42-83), and the Employment Security
Reemployment Fund (section 28-42-87) shall be
deposited in said respective funds.
44-6.4-8. Analysis
of amnesty program by tax administrator. -- The tax administrator
shall provide an analysis of the amnesty program to
the chairpersons of the house finance
committee and senate finance committee, with copies to
the members of the revenue estimating
conference, by January 1, 2013. The report shall
include an analysis of revenues received by tax
source, distinguishing between the tax collected and
interest collected for each source. In
addition, the report shall further identify the
amounts that are new revenues from those already
included in the general revenue receivable taxes,
defined under generally accepted accounting
principles and the state's audited financial
statements.
44-6.4-9. Rules
and regulations.-- The tax administrator may promulgate such rules
and
regulations as are necessary to implement the
provisions of this chapter.
SECTION
3. Sections 44-18-7, 44-18-8, 44-18-12, 44-18-15, 44-18-18, 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:
44-18-7. Sales
defined [effective until October 1, 2012]. --"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) 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. §§ 116 – 126), subject to the
specific exemptions described in 4 U.S.C. § 116(c),
and the exemptions provided in §§ 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 §§
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)(13)
The sale, storage, use or other consumption of over-the-counter drugs as
defined
in paragraph 44-18-7.1(h)(ii).
(15)(14)
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)(15)
The sale, storage, use or other consumption of medical marijuana as defined in
§21-28.6-3.
44-18-7. Sales
defined [effective October 1, 2012]. --"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) 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. §§ 116 – 126), subject to the
specific exemptions described in 4 U.S.C. § 116(c),
and the exemptions provided in §§ 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 §§
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 sale, storage,
use or other consumption of over-the-counter drugs as defined in
paragraph 44-18-7.1(h)(ii).
(14) 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).
(15) The sale, storage,
use or other consumption of medical marijuana as defined in §21-
28.6-3.
(16) The furnishing of
services in this state as defined in section 44-18-7.3.
44-18-8. Retail
sale or sale at retail defined [effective until October 1, 2012]. -- 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 §
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.
44-18-8. Retail
sale or sale at retail defined [effective October 1, 2012]. -- 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, or services as defined in section
44-18-7.3
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 § 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.
applies to the measure subject to 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 § 44-18-7.1(i);
(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.
44-18-12.
the measure subject to 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 § 44-18-7.1(i);
(v) Credit for any
trade-in, as determined by state law; or
(vi) The amount
charged for services, as defined in section 44-18-7.3.
(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 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 [effective until October 1, 2012].-- (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, for storage,
use, or other consumption 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.
44-18-15."Retailer"
defined [effective October 1, 2012].-- (a) "Retailer"
includes:
(1) Every person engaged
in the business of making sales at retail including prewritten
computer software delivered electronically or by load
and leave, sales of services as defined in
section 44-18-7.3, and sales at auction of tangible personal property owned
by the person or
others.
(2) Every person making
sales of tangible personal property including prewritten
computer software delivered electronically or by load
and leave, or sales of services as defined in
section 44-18-7.3, 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 of: (1) tangible personal property,
(ii) , or the business of making sales at auction of
tangible personal property owned by the person or
others, prewritten computer software delivered
electronically or by load and leave, and (iv)
services as defined in section 44-18-7.3.
(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 as
defined in section 42-63.1-2, 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:
(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.
44-18-18. Sales
tax imposed [effective October 1, 2012]. -- A tax is imposed upon sales
at retail in this state including charges for rentals
of living quarters in hotels as defined in section
42-63.1-2,
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 §
44-18-18 shall be six and one-half percent (6.5%).
44-18-20. Use tax
imposed [effective until October 1, 2012]. -- (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 § 44-18-21 means and
includes those
defined in § 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 § 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 § 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) "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 § 44-18-18 shall be
six and one-half percent (6.5%).
44-18-20. Use tax
imposed [effective October 1, 2012]. -- (a) An excise tax is imposed
on the storage, use, or other consumption in this
state of tangible personal property, prewritten
computer software delivered electronically or by load
and leave or services as defined section 44-
18-7.3;
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 § 44-18-21 means and
includes those
defined in § 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 § 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 § 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, or services as defined
in section 44-18-7.3 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) "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 § 44-18-18 shall be
six and one-half percent (6.5%).
44-18-21.
Liability for use tax [effective until October 1, 2012]. -- (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 § 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 § 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 §§ 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.
44-18-21.
Liability for use tax [effective October 1, 2012]. -- (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, or services as defined in section 44-18-7.3
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 § 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 § 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 §§ 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 [effective until October 1, 2012]. --
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.
44-18-22.
Collection of use tax by retailer [effective October 1, 2012]. -- 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, or services as defined in section
44-18-7.3, for storage, use, or other consumption in
this state, 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, or
services as defined in section 44-18-7.3, 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 [effective until October 1, 2012]. --
As used
in §§ 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.
44-18-23. "Engaging
in business" defined [effective October 1, 2012]. -- As used in §§
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; or services as defined in section 44-
18-7.3 in this state. 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, or services as
defined in section 44-18-7.3;
(3) The regular or
systematic solicitation of sales of tangible personal property, or
prewritten computer software delivered electronically
or by load and leave, or services as defined
in section 44-18-7.3, 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 [effective until October 1, 2012]. -- 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 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.
44-18-25.
Presumption that sale is for storage, use, or consumption – Resale
certificate [effective October 1, 2012]. -- 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, or
services as defined in section 44-18-7.3, are
subject to the use tax, and that all tangible personal
property, or prewritten computer software
delivered electronically or by load and leave, or
services as defined in section 44-18-7.3, 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) 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
"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
§ 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 § 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 § 44-18-7.1(h)(i),
sold on prescriptions, medical oxygen, and
insulin whether or not sold on prescription. For
purposes of this exemption, drugs shall not
include over the counter drugs, and grooming and
hygiene products as defined in § 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 § 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 § 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 § 44-18-20. In that event
the bona fide nonresident pays a tax to
would be imposed in his or her state of residence not
to exceed the rate that would have been
imposed under § 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 §§ 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 § 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 § 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 § 39-14-1 and/or a "wheelchair
accessible public motor vehicle" as defined in §
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 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. 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 § 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 sales prior to October 1, 2012.
Effective October 1, 2012, the exemption will apply to
the sales of articles of clothing, including
footwear, intended to be worn or carried on or about
the human body up to two hundred and fifty
dollars ($250) of the sales price per item. 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 § 44-18-7.1(f). 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, this exemption will apply as it
did prior to October 1, 2012.
(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 §§ 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 §
31-1-8 and is eligible for registration displaying
farm plates as provided for in § 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 § 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 § 23-19.1-4, where the "hazardous
wastes" are generated in
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 § 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. § 2011 et seq.
(40) Transportation charges. From the sale or
hiring of motor carriers as defined in § 39-
12-2(l) to haul goods, when the contract or hiring
cost is charged by a motor freight tariff filed
with 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 §§ 44-18-10, 44-18-11, 44-18-20, the tax
imposed by § 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 §§ 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 § 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. § 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 § 44-18-20; provided, further, that in
that event the bona fide nonresident pays a tax to
rate that would be imposed in his or her state of
residence not to exceed the rate that would have
been imposed under § 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
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 §§ 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 § 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 §§ 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
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 §
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) 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.
(62) Diesel emission control technology. From
the sale and use of diesel retrofit
technology that is required by § 31-47.3-4 of the
general laws.
SECTION
4. Chapter 44-18 of the General Laws entitled “Sales and Use Taxes –
Liability and Computation”
is hereby amended by adding thereto the following section:
44-18-7.3.
Services defined.-- (a) “Services” means all activities
engaged in for other
persons for a fee, retainer, commission, or other
monetary charge, which activities involve the
performance of a service in this state as
distinguished from selling property.
(b) The following
businesses and services performed in this state, along with the
applicable 2007 North American Industrial
Classification System (NAICS) codes, are included in
the definition of services:
(1) Taxicab and
limousine services including but not limited to:
(i)
Taxicab services including taxi dispatchers (485310); and
(ii) Limousine
services (485320).
(2) Other road
transportation service including but not limited to:
(i)
Charter bus service (485510); and
(ii) All other transit
and ground passenger transportation (485999).
(3) Pet care services
(812910) except veterinary and testing laboratories services.
(c) The tax
administrator is authorized to promulgate rules and regulations in accordance
with the provisions of chapter 42-35 to carry out the
provisions, policies, and purposes of this
chapter.
SECTION
5. 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 [effective until October 1, 2012]. -- 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.
44-19-7. Registration
of retailers [effective October 1, 2012]. -- 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, as well as services as defined in
section 44-18-7.3, in this state, or renting living quarters in any hotel as defined
in section 42-
63.1-2,
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 as defined
in section 42-63.1-2, rooming house, or tourist
camp or other places of business in this state, and other
information that the tax administrator
may require.
SECTION
6. Sections 44-20-1, 44-20-2, 44-20-3, 44-20-4.1, 44-20-12, 44-20-13, 44-20-
13.2, 44-20-39 and 44-20-45
of the General Laws in Chapter 44-20 entitled "Cigarette Tax" is
hereby amended to read as
follows:
44-20-1.
Definitions. -- Whenever used in this chapter, unless the context
requires
otherwise:
(1)
"Administrator" means the tax administrator;
(2)
"Cigarettes" means and includes any cigarettes suitable for smoking
in cigarette form,
and each sheet of cigarette rolling paper;
(3) "Dealer"
means any person whether located within or outside of this state, who sells
or distributes cigarettes to a consumer in this state;
(4)
"Distributor" means any person:
(A) Whether located
within or outside of this state, other than a dealer, who sells or
distributes cigarettes within or into this state. Such
term shall not include any cigarette
manufacturer, export warehouse proprietor, or importer
with a valid permit under 26 U.S.C. §
5712, if such person sells or distributes cigarettes
in this state only to licensed distributors, or to
an export warehouse proprietor or another manufacturer
with a valid permit under 26 U.S.C. §
5712;
(B) Selling cigarettes
directly to consumers in this state by means of at least twenty-five
(25) cigarette vending machines;
(C) Engaged in this
state in the business of manufacturing cigarettes or any person
engaged in the business of selling cigarettes to
dealers, or to other persons, for the purpose of
resale only; provided, that seventy-five percent (75%)
of all cigarettes sold by that person in this
state are sold to dealers or other persons for resale
and selling cigarettes directly to at least forty
(40) dealers or other persons for resale; or
(D) Maintaining one or
more regular places of business in this state for that purpose;
provided, that seventy-five percent (75%) of the sold
cigarettes are purchased directly from the
manufacturer and selling cigarettes directly to at
least forty (40) dealers or other persons for
resale;
(5) "Importer"
means any person who imports into the
indirectly, a finished cigarette for sale or
distribution;
(6)
"Licensed", when used with reference to a manufacturer, importer,
distributor or
dealer, means only those persons who hold a valid and
current license issued under § 44-20-2 for
the type of business being engaged in. When the term
"licensed" is used before a list of entities,
such as "licensed manufacturer, importer,
wholesale dealer, or retailer dealer," such term shall be
deemed to apply to each entity in such list;
(7)
"Manufacturer" means any person who manufactures, fabricates, assembles,
processes, or labels a finished cigarette;
(8) "Person"
means any individual, including an employee or agent, firm, fiduciary,
partnership, corporation, trust, or association,
however formed;
(9) "Place of
business" means and includes any place where cigarettes are sold or where
cigarettes are stored or kept for the purpose of sale
or consumption, including any vessel, vehicle,
airplane, train, or vending machine;
(10) "
(11) "Stamp"
means the impression, device, stamp, label, or print manufactured, printed,
or made as prescribed by the administrator to be
affixed to packages of cigarettes, as evidence of
the payment of the tax provided by this chapter or to
indicate that the cigarettes are intended for a
sale or distribution in this state that is exempt from
state tax under the provisions of state law; and
also includes impressions made by metering machines
authorized to be used under the provisions
of this chapter.
44-20-2. Importer,
distributor, and dealer licenses required – Licenses required. --
Each person engaging in the business of selling
cigarette and/or any tobacco products in this state,
including any distributor or dealer, shall secure a
license from the administrator before engaging
in that business, or continuing to engage in it. A
separate application and license is required for
each place of business operated by a distributor or
dealer; provided, that an operator of vending
machines for cigarette products is not required to
obtain a distributor's license for each machine.
If the applicant for a license does not have a place
of business in this state, the license shall be
issued for such applicant's principal place of business,
wherever located. A licensee shall notify
the administrator within thirty (30) days in the event
that it changes its principal place of
business. A separate license is required for each
class of business if the applicant is engaged in
more than one of the activities required to be
licensed by this section. No person shall maintain or
operate or cause to be operated a vending machine for
cigarette products without procuring a
dealer's license for each machine.
44-20-3. Penalties
for unlicensed business. -- Any distributor or dealer who sells, offers
for sale, or possesses with intent to sell, cigarettes
and/or any tobacco products without a license
as provided in § 44-20-2, shall be fined in accordance
with the provisions of and the penalties
contained in § 11-9-13.15.
44-20-4.1. License
availability. -- (a) No license under this chapter may be granted,
maintained or renewed if the applicant, or any
combination of persons owning directly or
indirectly, in the aggregate, more than ten percent
(10%) of the ownership any interests in the
applicant:
(1) Owes five hundred
dollars ($500) or more in delinquent cigarette taxes;
(2) Is delinquent in
any tax filings for one month or more;
(2)(3) Had
a license under this chapter revoked by the administrator within the past two
(2) years;
(3)(4) Has
been convicted of a crime relating to cigarettes stolen or counterfeit
cigarettes;
(4)(5) Is
a cigarette manufacturer or importer that is neither: (i)
a participating
manufacturer as defined in subsection II (jj) of the "Master Settlement Agreement" as
defined in
§ 23-71-2; nor (ii) in full compliance with chapter
20.2 of this title and § 23-71-3;
(5)(6) Has
imported, or caused to be imported, into the United States any cigarette in
violation of 19 U.S.C. § 1681a; or
(6)(7) Has
imported, or caused to be imported into the
sale or distribution in the United States any cigarette
that does not fully comply with the Federal
Cigarette Labeling and Advertising Act (15 U.S.C. §
1331, et. seq).
(b) No person shall
apply for a new license or permit (as defined in § 44-19-1) or renewal
of a license or permit, and no license or permit shall
be issued or renewed for any person, unless
all outstanding fines, fees or other charges relating
to any license or permit held by that person
have been paid.
(2) No license or permit
shall be issued relating to a business at any specific location until
all prior licenses or permits relating to that
location have been officially terminated and all fines,
fees or charges relating to the prior licenses have
been paid or otherwise resolved or the
administrator has found that the person applying for
the new license or permit is not acting as an
agent for the prior licensee or permit holder who is
subject to any such related fines, fees or
charges that are still due. Evidence of such agency
status includes, but is not limited to, a direct
familial relationship and/or an employment,
contractual or other formal financial or business
relationship with the prior licensee or permit holder.
(3) No person shall
apply for a new license or permit pertaining to a specific location in
order to evade payment of any fines, fees or other
charges relating to a prior license or permit for
that location.
(4) No new license or
permit shall be issued for a business at a specific location for which
a license or permit already has been issued unless
there is a bona fide, good faith change in
ownership of the business at that location.
(5) No license or permit
shall be issued, renewed or maintained for any person, including
the owners of the business being licensed or having
applied and received a permit, that has been
convicted of violating any criminal law relating to
tobacco products, the payment of taxes or
fraud or has been ordered to pay civil fines of more
than twenty-five thousand dollars ($25,000)
dollars for violations of any civil law relating to
tobacco products, the payment of taxes or fraud.
44-20-12. Tax
imposed on cigarettes sold. -- A tax is imposed on all cigarettes sold
or
held for sale in the state. The payment of the tax to be
evidenced by stamps, which may be
affixed only by licensed distributors to the packages
containing such cigarettes. Any cigarettes on
which the proper amount of tax provided for in this
chapter has been paid, payment being
evidenced by the stamp, is not subject to a further
tax under this chapter. The tax is at the rate of
one hundred seventy-three (173) one hundred seventy-five (175) mills for each
cigarette.
44-20-13. Tax
imposed on unstamped cigarettes. -- A tax is imposed at the rate of one
hundred seventy-three (173) one hundred seventy-five (175) mills for each
cigarette upon the
storage or use within this state of any cigarettes not
stamped in accordance with the provisions of
this chapter in the possession of any consumer within
this state.
44-20-13.2. Tax
imposed on smokeless tobacco, cigars, and pipe tobacco products. --
(a) A tax is imposed on all smokeless tobacco, cigars,
and pipe tobacco products sold or held for
sale in the state by any person, the payment of the
tax to be accomplished according to a
mechanism established by the administrator, division
of taxation, department of administration.
Any tobacco product on which the proper amount of tax
provided for in this chapter has been
paid, payment being evidenced by a stamp, is not
subject to a further tax under this chapter. The
tax imposed by this section shall be as follows:
(1) At the rate of
eighty percent (80%) of the wholesale cost of cigars, pipe tobacco
products and smokeless tobacco other than snuff.
(2) Notwithstanding the
eighty percent (80%) rate in subsection (a) above, in the case of
cigars, the tax shall not exceed fifty cents ($.50)
for each cigar.
(3) At the rate of one
dollar ($1.00) per ounce of snuff, and a proportionate tax at the like
rate on all fractional parts of an ounce thereof. Such
tax shall be computed based on the net
weight as listed by the manufacturer, provided,
however, that any product listed by the
manufacturer as having a net weight of less than 1.2
ounces shall be taxed as if the product has a
net weight of 1.2 ounces.
(b) Any dealer having
in his or her possession any tobacco, cigars, and pipe tobacco
products with respect to the storage or use of which a
tax is imposed by this section shall, within
five (5) days after coming into possession of the
tobacco, cigars, and pipe tobacco in this state,
file a return with the tax administrator in a form
prescribed by the tax administrator. The return
shall be accompanied by a payment of the amount of the
tax shown on the form to be due.
Records required under this section shall be preserved
on the premises described in the relevant
license in such a manner as to ensure permanency and
accessibility for inspection at reasonable
hours by authorized personnel of the administrator.
(c) The proceeds
collected are paid into the general fund.
44-20-39. Forgery
and counterfeiting – Tampering with meters – Reuse of stamps or
containers. -- Any person
who fraudulently makes or utters or forges or counterfeits any stamp,
disc, license, or marker, prescribed by the tax
administrator under the provisions of this chapter,
or who causes or procures this to be done, or who
willfully utters, publishes, passes or renders as
true, any false, altered, forged, or counterfeited
stamp, license, disc, or marker, or who knowingly
possesses more than twenty (20) packs of cigarettes
containing any false, altered, forged, or
counterfeited stamp, license, disc, or marker, or who
tampers with or causes to be tampered with
any metering machine authorized to be used under the
provisions of this chapter, or who removes
or prepares any stamp with intent to use, or cause
that stamp to be used, after it has already been
used, or who buys, sells, offers for sale, or gives away
any washed or removed or restored stamp
to any person, or who has in his or her possession any
washed or restored or removed or altered
stamp which was removed from the article to which it
was affixed, or who reuses or refills with
cigarettes any package, box, or container required to
be stamped under this chapter from which
cigarettes have been removed, is deemed guilty of a
felony, and, upon conviction, shall be fined
ten thousand dollars ($10,000), or be imprisoned for
not more than ten (10) years, or both.
44-20-45.
Importation of cigarettes with intent to evade tax. -- Any person,
firm,
corporation, club, or association of persons, not
having a license as provided in this chapter, who
orders any cigarettes for another or pools orders for
cigarettes from any persons or connives with
others for pooling orders, or receives in this state
any shipment of unstamped cigarettes on which
the tax imposed by this chapter has not been paid, for
the purpose and intention of violating the
provisions of this chapter or to avoid payment of the
tax imposed in this chapter, is guilty of a
felony and shall be fined ten thousand dollars
($10,000) or five (5) times the retail value of the
cigarettes involved, whichever is greater, or
imprisoned not more than five (5) years, or both.
SECTION
7. Chapter 44-20 of the General Laws entitled “Cigarette Tax” is hereby
amended by adding thereto
the following section:
44-20-12.4. Floor
stock tax on cigarettes and stamps. -- (a) Whenever used in this
section, unless the context requires otherwise:
(1)
"Cigarette" means and includes any cigarette as defined in section
44-20-1(2);
(2)
"Person" means and includes each individual, firm, fiduciary,
partnership,
corporation, trust, or association, however formed.
(b) Each person
engaging in the business of selling cigarettes at retail in this state shall
pay a tax or excise to the state for the privilege of
engaging in that business during any part of the
calendar year 2012. In calendar year 2012, the tax
shall be measured by the number of cigarettes
held by the person in this state at 12:01 a.m. on July
1, 2012 and is computed at the rate of two
(2.0) mills for each cigarette on July 1, 2012.
(c) Each distributor
licensed to do business in this state pursuant to this chapter shall pay
a tax or excise to the state for the privilege of
engaging in business during any part of the calendar
year 2012. The tax is measured by the number of
stamps, whether affixed or to be affixed to
packages of cigarettes, as required by section
44-20-28. In calendar year 2012 the tax is measured
by the number of stamps, as defined in section
44-20-1(10), whether affixed or to be affixed, held
by the distributor at 12:01 a.m. on July 1, 2012, and
is computed at the rate of two (2.0) mills per
cigarette in the package to which the stamps are
affixed or to be affixed.
(d) Each person
subject to the payment of the tax imposed by this section shall, on or
before July 10, 2012, file a return with the tax
administrator on forms furnished by him or her,
under oath or certified under the penalties of
perjury, showing the amount of cigarettes or stamps
in that person's possession in this state at 12:01
a.m. on July 1, 2012, and the amount of tax due,
and shall at the time of filing the return pay the tax
to the tax administrator. Failure to obtain
forms shall not be an excuse for the failure to make a
return containing the information required
by the tax administrator.
(e) The tax
administrator may promulgate rules and regulations, not inconsistent with
law, with regard to the assessment and collection of
the tax imposed by this section.
SECTION
8. Section 44-20.2-1 of the General Laws in Chapter 44-20.2 entitled
"Little
Cigar Tax" are hereby
amended to read as follows:
44-20.2-1.
Definitions. -- Whenever used in this chapter, unless the context
requires
otherwise:
(1)
"Administrator" means the tax administrator;
(2) "Dealer"
means any person whether located within or outside of this state, who sells
or distributes little cigars to a consumer in this
state;
(3)
"Distributor" means any person:
(i)
Whether located within or outside of this state, other than a dealer, who sells
or
distributes little cigars within or into this state.
Such term shall not include any little cigar
manufacturer, export warehouse proprietor, or importer
with a valid permit under 26 U.S.C. §
5712, if such person sells or distributes little
cigars in this state only to licensed distributors, or to
an export warehouse proprietor or another manufacturer
with a valid permit under 26 U.S.C. §
5712;
(ii) Selling little
cigars directly to consumers in this state by means of at least twenty-five
(25) little cigar vending machines.
(4) "Importer"
means any person who imports into the
indirectly, a finished little cigar for sale or
distribution;
(5) "Licensed"
when used with reference to a manufacturer, importer, distributor or
dealer, means only those persons who hold a valid and
current license issued under § 44-20-2 for
the type of business being engaged in. When the term
"licensed" is used before a list of entities,
such as "licensed manufacturer, importer,
wholesale dealer, or retailer dealer," such term shall be
deemed to apply to each entity in such list;
(6) "Little
cigars" means and includes any roll, made wholly or in part of tobacco,
irrespective of size or shape and irrespective of
whether the tobacco is flavored, adulterated or
mixed with any other ingredient, where such roll has a
wrapper or cover made of tobacco
wrapped in leaf tobacco or any substance containing
tobacco paper or any other material and
where such roll has an integrated filter, except where such wrapper is wholly or in greater
part
made of tobacco and where such roll has an
integrated filter and such roll weighs over three (3)
four (4)
pounds per thousand (1,000);
(7)
"Manufacturer" means any person who manufactures, fabricates,
assembles,
processes, or labels a finished little cigar;
(8) "Person"
means any individual, firm, fiduciary, partnership, corporation, trust, or
association, however formed;
(9) "Place of
business" means and includes any place where little cigars are sold or
where
little cigars are stored or kept for the purpose of
sale or consumption, including any vessel,
vehicle, airplane, train, or vending machine;
(10) "
(11) "Snuff"
means any finely cut, ground, or powdered tobacco that is not intended to be
smoked;
(12) "Stamp"
means the impression, device, stamp, label, or print manufactured, printed,
or made as prescribed by the administrator to be
affixed to packages of little cigars, as evidence
of the payment of the tax provided by this chapter or
to indicate that the little cigars are intended
for a sale or distribution in this state that is
exempt from state tax under the provisions of state
law and also includes impressions made by metering
machines authorized to be used under the
provisions of this chapter.
SECTION
9. Section 44-44-2 of the General Laws in Chapter 44-44 entitled "Taxation
of
Beverage Containers,
Hard-to-Dispose Material and Litter Control Participation" is hereby
amended to read as follows:
44-44-2.
Definitions. -- As used in this chapter:
(1) "Beverage"
means carbonated soft drinks, soda water, mineral water, bottled water,
and all
non alcoholic drinks for human consumption, except milk but including beer
and other
malt beverages.
(2) "Beverage
container" means any sealable bottle, can, jar, or carton which contains a
beverage.
(3) "Beverage
retailer" means any person who engages in the sale of a beverage container
to a consumer within the state of
(4) "Beverage
wholesaler" means any person who engages in the sale of beverage
containers to beverage retailers in this state,
including any brewer, manufacturer, or bottler who
engages in those sales.
(5) "Case"
means:
(i)
Forty-eight (48) beverage containers sold or offered for sale within this state
when
each beverage container has a liquid capacity of seven
(7) fluid ounces or less;
(ii) Twenty-four (24)
beverage containers sold or offered for sale within this state when
each beverage container has a liquid capacity in
excess of seven (7) fluid ounces but less than or
equal to sixteen and nine tenths (16.9) fluid ounces;
(iii) Twelve (12)
beverage containers sold or offered for sale within this state when each
beverage container has a liquid capacity in excess of
sixteen and nine tenths (16.9) fluid ounces
but less than thirty-three and nine tenths (33.9)
fluid ounces; and
(iv) Six (6) beverage
containers sold or offered for sale within this state when each
beverage container has a liquid capacity of
thirty-three and nine tenths (33.9) fluid ounces or
more.
(6) A permit issued in
accordance with § 44-44-3.1(1) is called a Class A permit.
(7) A permit issued in
accordance with § 44-44-3.1(2) is called a Class B permit.
(8) A permit issued in
accordance with § 44-44-3.1(3) is called a Class C permit.
(9) A permit issued in
accordance with § 44-44-3.1(4) is called a Class D permit.
(10) A permit issued in
accordance with § 44-44-3.1(5) is called a Class E permit.
(11)
"Consumer" means any person who purchases a beverage in a beverage
container for
use or consumption with no intent to resell that
filled beverage container.
(12) "Gross
receipts" means those receipts reported for each location to the tax
administrator included in the measure of tax imposed
under chapter 18 of this title, as amended.
For those persons having multiple locations' receipts
reported to the tax administrator the "gross
receipts" to be aggregated shall be determined by
each individual sales tax permit number. The
term gross receipts shall be computed without
deduction for retail sales of items in activities other
than those which this state is prohibited from taxing
under the constitution of the
(13) "Hard-to-dispose
material" is as defined in § 37-15.1-3.
(14)
"Hard-to-dispose material retailer" means any person who engages in
the retail sale
of hard-to-dispose material (as defined in §
37-15.1-3) in this state.
(15)
"Hard-to-dispose material wholesaler" means any person, wherever
located, who
engages in the sale of hard-to-dispose material (as
defined in § 37-15.1-3) to customers for sale in
this state (including manufacturers, refiners, and
distributors and retailers), and to other persons
as defined above.
(16) "New
vehicle" means any mode of transportation for which a certificate of title
is
required pursuant to title 31 and for which a
certificate of title has not been previously issued in
this state or any other state or country.
(17) "Organic
solvent" is as defined in § 37-15.1-3.
(18) "Person"
means any natural person, corporation, partnership, joint venture,
association, proprietorship, firm, or other business
entity.
(19) "Prior
calendar year" means the period beginning with January 1 and ending with
December 31 immediately preceding the permit
application due date.
(20) "Qualifying
activities" means selling or offering for retail sale food or beverages
for
immediate consumption and/or packaged for sale on a
take out or to go basis regardless of
whether or not the items are subsequently actually
eaten on or off the vendor's premises.
(21) "Vending
machine" means a self-contained automatic device that dispenses for sale
foods, beverages, or confection products.
SECTION
10. Sections 44-31.2-2, 44-31.2-5, and 44-31.2-6 of the General Laws in
Chapter 44-31.2 entitled
“Motion Picture Production Tax Credit” are hereby amended to read as
follows:
44-31.2-2. Definitions.
-- For the purposes of this chapter:
(1) "Accountant's
certification" as provided in this chapter means a certified audit by a
(2) "Base
investment" means the actual investment made and expended by a state-
certified production in the state as
production-related costs.
(3) “Documentary
Production” means a non-fiction production intended for educational
or commercial distribution that may require out of
state principal photography.
(3)(4)
"Domiciled in
a partnership, limited liability company, or other
business entity formed under the laws of the
state of Rhode Island for the purpose of producing
motion pictures as defined in this section, or
an individual who is a domiciled resident of the state
of
this title.
(5) “Final Production
Budget” means and includes the total pre-production, production
and post-production out-of-pocket costs incurred and
paid in connection with the making of the
motion picture. The final production budget excludes
costs associated with the promotion or
marketing of the motion picture
(4)(6)
"Motion picture" means a feature-length film, documentary
production, video,
video games, television series, or commercial made in
theatrical or television viewing or as a television
pilot or for educational distribution. The term
"motion picture" shall not include the
production of television coverage of news or athletic
events, nor shall it apply to any film, video,
television series or commercial or a production for
which records are required under section 2257 of title
18, U.S.C., to be maintained with respect to
any performer in such production or reporting of
books, films, etc. with respect to sexually
explicit conduct.
(5)(7)
"Motion picture production company" means a corporation, partnership,
limited
liability company or other business entity engaged in the business of producing one or more
motion pictures as defined in this section. Motion picture production company shall not mean or
include: (a) any company owned, affiliated, or controlled, in whole or in part by any company or
person which is in default: (i) on taxes owed to the state; or (ii) on a loan made by the state in the
application year; or (iii) on a loan
guaranteed by the state in the application year; nor (iv) any
company or person who has even declared bankruptcy under
which an obligation of the company
or person to pay or repay public funds or monies was
discharged as a part of such bankruptcy. or
(b) any company or person who has discharged an obligation to pay or repay public funds or
monies by: (i) filing a petition under any Federal or state bankruptcy or insolvency law; (ii)
having a petition filed under any Federal or state bankruptcy or insolvency law against such
company or person; (iii) consenting to, or acquiescing or joining in, a petition named in (i) or (ii);
(iv) consenting to, or acquiescing or joining in, the appointment of a custodian, receiver, trustee,
or examiner for such company's or person's property; or (v) making an assignment for the benefit
of creditors or admitting in writing or in any legal proceeding its insolvency or inability to pay
debts as they become due.
(6)(8)
"Primary locations" means the locations within which (1) at
least fifty-one percent
(51%) of the motion picture principal photography days
are filmed. ; or (2) at least fifty-one
percent (51%) of the motion picture’s final production
budget is spent and employs at least five
(5) individuals during the production in this state;
or (3) for documentary productions, the
location of at least fifty-one percent (51%) of the
total productions days, which shall include pre-
production and post-production locations.
(7)(9)
"Rhode
Island
state council on the arts department of administration that has been
established in order to
promote and encourage the locating of film and
television productions within the state of Rhode
Island. The office is also referred to within as the
"film office".
(8)(10)
"State-certified production" means a motion picture production
approved by the
in the motion picture; provided, that such company has
either: (a) signed a viable distribution
plan; or (b) is producing the motion picture for: (i) a major motion picture distributor; (ii) a major
theatrical exhibitor; (iii) television network; or
(iv) cable television programmer.
(9)(11)
"State certified production cost" means any pre-production,
production and post-
production cost that a motion picture production
company incurs and pays to the extent it occurs
within the state of
production costs" include: set construction and
operation; wardrobes, make-up, accessories, and
related services; costs associated with photography
and sound synchronization, lighting, and
related services and materials; editing and related
services, including, but not limited to, film
processing, transfers of film to tape or digital
format, sound mixing, computer graphics services,
special effects services, and animation services,
salary, wages, and other compensation, including
related benefits, of persons employed, either director
or indirectly, in the production of a film
including writer, motion picture director, producer
(provided the work is performed in the state of
of food and lodging; music, if performed, composed, or
recorded by a
released or published by a person domiciled in
persons employed, either directly or indirectly, in
the production of the motion picture, to Rhode
Island (but not expenses of such persons departing
from
expense of a completion bond or insurance and
accounting fees and expenses related to the
production's activities in
licensed attorneys or accountants.
(12)
"Application year" means within the calendar year the motion picture
production
company files an application for the tax credit.
44-31.2-5. Motion
picture production company tax credit. -- (a) A motion picture
production company shall be allowed a credit to be
computed as provided in this chapter against a
tax imposed by chapters 11, 14, 17 and 30 of this
title. The amount of the credit shall be twenty-
five percent (25%) of the state certified production
costs incurred directly attributable to activity
within the state, provided that the primary locations
are within the state of
total production budget as defined herein is a minimum
of three one hundred thousand dollars
($300,000) ($100,000).
The credit shall be earned in the taxable year in which production in
subsection 44-31.2-6(c).
(b) For the purposes of
this section: "total production budget" means and includes the
motion picture production company's pre-production,
production and post-production costs
incurred for the production activities of the motion
picture production company in
in connection with the production of a state-certified
production. The budget shall not include
costs associated with the promotion or marketing of
the film, video or television product.
(c) Notwithstanding
subsection (a), the The credit shall not
exceed the total production
budget five
million dollars ($5,000,000) and shall be allowed against the tax for the
taxable
period in which the credit is earned and can be
carried forward for not more than three (3)
succeeding tax years. Pursuant to rules promulgated
by the tax administrator, the administrator
may issue a waiver of the five million dollar
($5,000,000) tax credit cap for any feature-length
film or television series up to the remaining funds
available pursuant to section (e).
(d) Credits allowed to a
motion picture production company, which is a subchapter S
corporation, partnership, or a limited liability
company that is taxed as a partnership, shall be
passed through respectively to persons designated as
partners, members or owners on a pro rata
basis or pursuant to an executed agreement among such
persons designated as subchapter S
corporation shareholders, partners, or members
documenting an alternate distribution method
without regard to their sharing of other tax or
economic attributes of such entity.
(e) No more than fifteen
million dollars ($15,000,000) in total may be issued for any tax
year beginning after December 31, 2007 for motion
picture tax credits pursuant to this chapter
and/or musical and theatrical production tax credits
pursuant to chapter 31.3 of this title.
Said
credits shall be equally available to motion picture
productions and musical and theatrical
productions. No specific amount shall be set aside for
either type of production.
44-31.2-6.
Certification and administration. -- (a) Initial certification of a production.
The applicant shall properly prepare, sign and submit
to the film office an application for initial
certification of the
data as the film office deems necessary for the proper
evaluation and administration of said
application, including, but not limited to, any
information about the motion picture production
company, and a specific
application and determine whether it meets the
requisite criteria and qualifications for the initial
certification for the production. If the initial
certification is granted, the film office shall issue a
notice of initial certification of the motion picture
production to the motion picture production
company and to the tax administrator. The notice shall
state that, after appropriate review, the
initial application meets the appropriate criteria for
conditional eligibility. The notice of initial
certification will provide a unique identification
number for the production and is only a
statement of conditional eligibility for the
production and, as such, does not grant or convey any
(b) Final certification of a production. Upon completion of the
activities, the applicant shall request a certificate
of good standing from the
of taxation. The division shall expedite the
process for reviewing the issuance of such certificates.
Such certificates shall verify to the film office the
motion picture production company's
compliance with the requirements of subsection
44-31.2-2(5). The applicant shall properly
prepare, sign and submit to the film office an application
for final certification of the production
and which must include the certificate of good
standing from the division of taxation. In addition,
the application shall contain such information and
data as the film office determines is necessary
for the proper evaluation and administration,
including, but not limited to, any information about
the motion picture production company, its investors
and information about the production
previously granted initial certification. The final
application shall also contain a cost report and an
"accountant's certification". The film
office and tax administrator may rely without independent
investigation, upon the accountant's certification, in
the form of an opinion, confirming the
accuracy of the information included in the cost
report. Upon review of a duly completed and
filed application, the film office will make a
determination pertaining to the final certification of
the production and the resultant credits for §
44-31.2-5. Within ninety (90) days after the division
of taxation's receipt of the motion picture production
company final certification and cost report,
the division of taxation shall issue a certification
of the amount of credit for which the motion
picture production company qualifies under section
44-31.2-5. To claim the tax credit, the
division of taxation's certification as to the amount
of the tax credit shall be attached to all state
tax returns on which the credit is claimed.
(c) Final certification and credits. Upon determination that the motion
picture production
company qualifies for final certification and the
resultant credits, the film office shall issue a
letter to the production company indicating
"certificate of completion of a state certified
production" and shall provide specifically
designed certificates for the motion picture production
company credit under § 44-31.2-5. A motion picture production company is prohibited
from
using state funds, state loans or state guaranteed
loans to qualify for the motion picture tax credit.
All documents that are issued by the film office
pursuant to this section shall reference the
identification number that was issued to the
production as part of its initial certification.
(d) The director of the Rhode Island
film and television office department of
administration,
in consultation as needed with the tax administrator, shall promulgate such
rules
and regulations as are necessary to carry out the
intent and purposes of this chapter in accordance
with the general guidelines provided herein for the
certification of the production and the
resultant production credit.
(e) The tax
administrator of the division of taxation, in consultation with the director of
the
necessary to carry out the intent and purposes of this
chapter in accordance with the general
guidelines for the tax credit provided herein.
(f) Any motion picture
production company applying for the credit shall be required to
reimburse the division of taxation for any audits
required in relation to granting the credit.
SECTION
11. Chapter 44-31.2 of the General Laws entitled “Motion Picture Production
Tax Credit” is hereby amended
by adding thereto the following section:
44-31.2-11.
Sunset. -- No credits shall be issued on or after July 1, 2019
unless the
production has received initial certification under
subsection 44-31.2-6(a) prior to July 1, 2019.
SECTION
12. Title 44 of the General Laws entitled "TAXATION" is hereby
amended by
adding thereto the
following chapter:
CHAPTER
31.3
MUSICAL
AND THEATRICAL PRODUCTION TAX CREDITS
44-31.3-1.
Declaration of purpose. -- The general assembly finds and declares that
it
is
that have large employment growth potential by
providing tax incentives and other means
necessary and therefore recognizes that such
incentives should be created for the arts and
entertainment industry. The purpose of this chapter is
to create economic incentives for the
purpose of stimulating the local economy and reducing
unemployment in
44-31.3-2. Musical
and Theatrical Production Tax Credits. –
(a) Definitions - As
used in this chapter:
(1) “Accredited
theater production” means a for-profit live stage presentation in a
qualified production facility, as defined in this
chapter that is either: (i) A Pre-Broadway
production, or (ii) A Post-Broadway production.
(2) “Accredited
theater production certificate” means a certificate issued by the film
office certifying that the production is an accredited
theater production that meets the guidelines
of this chapter.
(3) “Advertising and
public relations expenditure” means costs incurred within the state
by the accredited theater productions for goods or
services related to the national marketing,
public relations, creation and placement of print, electronic,
television, billboards and other forms
of advertising to promote the accredited theater
production.
(4)
"Payroll" means all salaries, wages, fees, and other compensation
including related
benefits for services performed and costs incurred
within
(5) “Pre-Broadway
Production” means a live stage production that, in its original or
adaptive version, is performed in a qualified
production facility having a presentation scheduled
for Broadway’s theater district in
presentation.
(6) “Post-Broadway
production” means a live stage production that, in its original or
adaptive version, is performed in a qualified
production facility and opens its
Island after a presentation scheduled for Broadway’s
theater district in
(7) “Production and
Performance Expenditures” means a contemporaneous exchange of
cash or cash equivalent for goods or services related
to development, production, performance or
operating expenditures incurred in this state for a
qualified theater production including, but not
limited to, expenditures for design, construction and
operation, including sets, special and visual
effects, costumes, wardrobes, make-up, accessories,
costs associated with sound, lighting,
staging, payroll, transportation expenditures,
advertising and public relations expenditures,
facility expenses, rentals, per diems, accommodations
and other related costs.
(8) “Qualified
Production Facility” means a facility located in the State of
in which live theatrical productions are, or are
intended to be, exclusively presented that contains
at least one stage, a seating capacity of one thousand
five hundred (1,500) or more seats, and
dressing rooms, storage areas, and other ancillary
amenities necessary for the accredited theater
production.
(9) “Resident” or “
eligibility for the tax incentives provided by this
chapter, an individual who is domiciled in the
State of
abode in this state and is in this state for an
aggregate of more than one hundred eighty-three
(183) days of the taxable year, unless the individual
is in the armed forces of the
(10) “
administration that has been established in order to
promote and encourage the locating of film
and television productions within the state of
“film office”.
(11) (i) “Transportation expenditures” means expenditures for the
packaging, crating, and
transportation both to the state for use in a
qualified theater production of sets, costumes, or other
tangible property constructed or manufactured out of
state, and/or from the state after use in a
qualified theater production of sets, costumes, or
other tangible property constructed or
manufactured in this state and the transportation of
the cast and crew to and from the state. Such
term shall include the packaging, crating, and
transporting of property and equipment used for
special and visual effects, sound, lighting, and
staging, costumes, wardrobes, make-up and related
accessories and materials, as well as any other
performance or production-related property and
equipment.
(ii) Transportation
expenditures shall not include any costs to transport property and
equipment to be used only for filming and not in a
qualified theater production, any indirect costs,
and expenditures that are later reimbursed by a third
party, or any amounts that are paid to
persons or entities as a result of their participation
in profits from the exploitation of the
production.
(b) Tax Credit. (1)
Any person, firm, partnership, trust, estate or other entity that receives
an accredited theater production certificate shall be
allowed a tax credit equal to twenty-five
percent (25%) of the total production and performance
expenditures and transportation
expenditures for the accredited theater production and
to be computed as provided in this chapter
against a tax imposed by chapters 11, 12, 13, 14, 17
and 30 of this title. Said credit shall not
exceed five million dollars ($5,000,000) and shall be
limited to certified production cost directly
attributable to activities in the state and
transportation expenditures defined above. The total
production budget shall be a minimum of one hundred
thousand dollars ($100,000).
(2) No more than
fifteen million dollars ($15,000,000) in total may be issued for any tax
year for motion picture tax credits pursuant to
chapter 31.2 of this title and/or musical and
theatrical production tax credits pursuant to this
chapter. Said credits shall be equally available to
motion picture productions and musical and theatrical
productions. No specific amount shall be
set aside for either type of production.
(3) The tax credit
shall be allowed against the tax for the taxable period in which the
credit is earned and can be carried forward for not
more than three (3) succeeding tax years.
(4) Credits allowed
to a company, which is a subchapter S corporation, partnership, or a
limited liability company that is taxed as a
partnership, shall be passed through respectively to
persons designated as partners, members or owners on a
pro rata basis or pursuant to an executed
agreement among such persons designated as subchapter
S corporation shareholders, partners, or
members documenting an alternate distribution method
without regard to their sharing of other
tax or economic attributes of such entity.
(5) If the company
has not claimed the tax credits in whole or part, taxpayers eligible for
the tax credits may assign, transfer or convey the tax
credits, in whole or in part, by sale or
otherwise to any individual or entity and such
assignee of the tax credits that have not claimed the
tax credits in whole or part may assign, transfer or
convey the tax credits, in whole or in part, by
sale or otherwise to any individual or entity. The
assignee of the tax credits may use acquired
credits to offset up to one hundred percent (100%) of
the tax liabilities otherwise imposed
pursuant to chapter 11, 12, 13 (other than the tax
imposed under section 44-13-13), 14, 17 or 30
of this title. The assignee may apply the tax credit against
taxes imposed on the assignee for not
more than three (3) succeeding tax years. The assignor
shall perfect the transfer by notifying the
state of
the effective date of the transfer and shall provide
any information as may be required by the
division of taxation to administer and carry out the
provisions of this section.
(6) For purposes of
this chapter, any assignment or sales proceeds received by the
assignor for its assignment or sale of the tax credits
allowed pursuant to this section shall be
exempt from this title.
(7) In the case of a
corporation, this credit is only allowed against the tax of a corporation
included in a consolidated return that qualifies for
the credit and not against the tax of other
corporations that may join in the filing of a
consolidated tax return.
(c) Certification
and administration. - (1) The applicant shall properly prepare, sign and
submit to the film office an application for initial
certification of the theater production. The
application shall include such information and data as
the film office deems reasonably necessary
for the proper evaluation and administration of said
application, including, but not limited to, any
information about the theater production company and a
specific
musical production. The film office shall review the
completed application and determine
whether it meets the requisite criteria and
qualifications for the initial certification for the
production. If the initial certification is granted,
the film office shall issue a notice of initial
certification of the accredited theater production to
the theater production company and to the tax
administrator. The notice shall state that, after
appropriate review, the initial application meets the
appropriate criteria for conditional eligibility. The
notice of initial certification will provide a
unique identification number for the production and is
only a statement of conditional eligibility
for the production and, as such, does not grant or
convey any
completion of an accredited theater production, the
applicant shall properly prepare, sign and
submit to the film office an application for final
certification of the accredited theater production.
The final application shall also contain a cost report
and an “accountant’s certification.” The film
office and tax administrator may rely without
independent investigation, upon the accountant’s
certification, in the form of an opinion, confirming
the accuracy of the information included in
the cost report. Upon review of a duly completed and
filed application and upon no later than
thirty (30) days of submission thereof, the division
of taxation will make a determination
pertaining to the final certification of the
accredited theater production and the resultant tax
credits.
(3) Upon
determination that the company qualifies for final certification and the
resultant
tax credits, the tax administrator of the division of
taxation shall issue to the company: (i) An
Accredited Theater Production Certificate; and (ii) A
tax credit certificate in an amount in
accordance with this section (b) hereof. A musical and
theatrical production company is
prohibited from using state funds, state loans or
state guaranteed loans to qualify for the motion
picture tax credit. All documents that are issued by
the film office pursuant to this section shall
reference the identification number that was issued to
the production as part of its initial
certification.
(4) The director of
the department of administration, in consultation as needed with the
tax administrator, shall promulgate such rules and
regulations as are necessary to carry out the
intent and purposes of this chapter in accordance with
the general guidelines provided herein for
the certification of the production and the resultant
production credit.
(5) If information
comes to the attention of the film office that is materially inconsistent
with representations made in an application, the film
office may deny the requested certification.
In the event that tax credits or a portion of tax
credits are subject to recapture for ineligible costs
and such tax credits have been transferred, assigned
and/or allocated, the state will pursue its
recapture remedies and rights against the applicant of
the theater production tax credits. No
redress shall be sought against assignees, sellers,
transferees or allocates of such credits.
(d) Information
requests. (i) The director of the film office and his
or her agents, for the
purpose of ascertaining the correctness of any credit
claimed under the provisions of this chapter,
may examine any books, paper, records, or memoranda
bearing upon the matters required to be
included in the return, report, or other statement,
and may require the attendance of the person
executing the return, report, or other statement, or
of any officer or employee of any taxpayer, or
the attendance of any other person, and may examine
the person under oath respecting any matter
which the director or his or her agent deems pertinent
or material in administration and
application of this chapter and where not inconsistent
with other legal provisions, the director
may request information from the tax administrator.
(ii) The tax
administrator and his or her agents, for the purpose of ascertaining the
correctness of any credit claimed under the provisions
of this chapter, may examine any books,
paper, records, or memoranda bearing upon the matters
required to be included in the return,
report, or other statement, and may require the
attendance of the person executing the return,
report, or other statement, or of any officer or
employee of any taxpayer, or the attendance of any
other person, and may examine the person under oath
respecting any matter which the tax
administrator or his or her agent deems pertinent or
material in determining the eligibility for
credits claimed and may request information from the
film office, and the film office shall
provide the information in all cases to the tax
administrator.
(e) The film office
shall comply with the impact analysis and periodic reporting
provisions of 44-31.2-6.1.
44-31.3-3.
Hearings and appeals. -- (a) From an action of the film office. -
For matters
pertaining exclusively to application, production, and
certification of musical and theatrical
productions, any person aggrieved by a denial action
of the film office under this chapter shall
notify the director of the film office in writing,
within thirty (30) days from the date of mailing of
the notice of denial action by the film office and
request a hearing relative to the denial or action.
The director of the film office shall, as soon as is
practicable, fix a time and place of hearing, and
shall render a final decision. Appeals from a final
decision of the director of the film office under
this chapter are to the sixth (6th) division district
court pursuant to chapter 35 of title 42 of the
general laws.
(b) From denial of
tax credit. - Any person aggrieved by the tax administrator's denial of
a tax credit or tax benefit in this section shall
notify the tax administrator in writing within thirty
(30) days from the date of mailing of the notice of
denial of the tax credit and request a hearing
relative to the denial of the tax credit. The tax
administrator shall, as soon as is practicable, fix a
time and place for a hearing, and shall render a final
decision. Appeals from a final decision of
the tax administrator under this chapter are to the
sixth (6th) division district court pursuant to
chapter 8 of title 8 of the general laws. The
taxpayer's right to appeal is expressly made
conditional upon prepayment of all taxes, interest,
and penalties, unless the taxpayer files a timely
motion for exemption from prepayment with the district
court in accordance with the
requirements imposed pursuant to section 8-8-26 of the
general laws.
44-31.3-4. Sunset.
-- No credits shall be issued on or after July 1, 2019 unless the
production has received initial certification under
subsection 44-31.3-2(c) prior to July 1, 2019.
SECTION
13. Section 42-75-12 of the General Laws in Chapter 42-75 entitled
"Council
on the Arts" is hereby
amended to read as follows:
42-75-12. commission
department of administration there is established a separate, distinct office
entitled the "Rhode
film and television productions within the state of
for the review of applications of motion picture
productions pursuant to the requirements of
chapter 31.2 of title 44.
SECTION
14. Section 31-22-11 of the General Laws in Chapter 31-22 entitled
"Miscellaneous
Rules" is hereby amended to read as follows:
31-22-11.
Inspection of school buses. -- (a) The division of motor vehicles shall
inspect
or cause to be inspected all school buses used for the
transportation of school children as defined
in section 31-1-3(v) at least twice throughout the
year. Both of the inspections are to be done at a
state certified facility on a semiannual scheduled
basis. These inspections will be known as tear
down inspections that will include pulling wheels at
least once each year if the school bus is
equipped with drum brakes and any other work deemed
necessary by the state employed or state
certified inspectors. Reports of the inspections shall
be made in writing and shall be filed with the
inspection division of the department of revenue, and
the reports shall be available at no cost for
public inspection during usual business hours of the
division. In the event that a school bus does
not pass an inspection and a re-inspection is
required, the division of motor vehicles shall impose
a fee of one hundred dollars ($100) for each
re-inspection.
(b) Upon receipt of the
report, the inspection division shall immediately forward a copy
to the registered owner and to the superintendent and
school committee of the school district for
which the school bus transports children.
SECTION
15. Section 3-10-5 of the General Laws in Chapter 3-10 entitled "Taxation
of
Beverages" is hereby
amended to read as follows:
3-10-5. Information
supplemental to returns -- Audit of books. – (a) The tax
administrator may at any time request further
information from any person or from the officers
and employees of any corporation which he or she may
deem necessary to verify, explain or
correct any return made in pursuance of the provisions
of this chapter, and for the like purpose the
administrator or his or her authorized agent may
examine the books of account of that person or
corporation during business hours.
(b) Each licensee
authorized to sell intoxicating beverages at wholesale or retail in this
state shall file an annual report on or before
February 1 with the division of taxation in the form
required by the tax administrator. Such report shall
included, but not limited to, total sales of
alcoholic beverages, sales tax and excise tax
collections on such sales for immediately preceding
calendar year. Annually, on or before May 1, the tax
administrator shall prepare and submit to the
chairs of house and senate finance committees a report
reflecting data from the annuals reports
submitted by said licensee to the division of
taxation. The tax administrator’s report shall compile
total sales of alcoholic beverages, sales tax and
excise tax collections by county.
SECTION
16. Section 4 of this article shall take effect on October 1, 2012.
The remaining sections of this article shall take effect on July 1, 2012.