ARTICLE
9 AS AMENDED
RELATING TO
TAXATION
SECTION
1. Section 44-61-1.1 of the General Laws in Chapter 44-61 entitled
"Relating
To Depreciation of Assets
and Net Operating Loss Deduction" is hereby amended to read as
follows:
44-61-1.1. Expensing
in lieu of depreciation of assets.– (a) For purposes of expensing
of assets under chapters 11, 14 and 30 of this title,
the expense deduction shall not exceed the sum
provided for twenty-five thousand dollars ($25,000) in any
taxable year. The additional expensing
of assets for federal tax purposes under section 179 of the Internal Revenue Code, 26
U.S.C.
section 179 provided by the Jobs and Growth Tax
Relief Reconciliation Act of 2003 or any
subsequent federal enactment shall not be allowed for . In the year that
those assets are placed in service expensing of
assets and in all subsequent years, expenses and
depreciation
for
under section 179 of the internal revenue code 26
U.S.C. section 179 on those assets
as it would
have been computed prior to the enactment of the Jobs
and Growth Tax Relief Reconciliation Act
of 2003. Any
remaining tax basis of the asset purchased shall be depreciated as provided for
under the internal revenue service code sections 167
and 168, excluding section 168(k).
(b) The gain resulting
from any subsequent disposition of these assets shall be computed
using a basis consistent with the
subsection (a) of this section.
(c) There is hereby
established a depreciation of assets transfer fund for the purpose of
reserving sufficient funding for the expensing of
assets in accordance with subsection (a). The
general assembly may appropriate such amounts to the
fund deemed necessary for said purpose.
SECTION
2. Chapter 44-55 of the General Laws entitled "Tax Incentives for
Employers"
is hereby amended by adding
thereto the following section:
44-55-8. Adding
back the domestic production activities deduction. -- All
corporations doing business in the state of
any amount deducted under the federal "domestic
production deduction" also known as section
199 of the federal Internal Revenue Code. State tax
forms shall be changed if needed in order to
comply with this section.
SECTION
3. Chapter 44-18 of the General Laws entitled "Sales and Use Taxes -
Liability and
Computation" is hereby amended by adding thereto the following sections:
44-18-15.2.
"Remote seller" and "remote sale" defined -- Collection of
sales and use
tax by remote seller. -- As used in this article:
(1) "Remote
seller" means a person that makes remote sales in this state.
(2) "Remote
sale" means a sale into this state for which the seller would not legally
be
required to pay, collect, or remit state or local
sales and use taxes unless provided by federal law.
(c) Upon passage of
any federal law authorizing states to require remote sellers to collect
and remit sales and use taxes, this state will require
a remote seller making remote sales in the
state to pay, collect, and remit sales and use taxes
at the rate imposed under section 44-18-18, and
in accordance with the provisions of this article,
chapters 44-18.1 and 44-19, and applicable
federal law.
44-18-18. Sales
tax imposed. -- A tax is imposed upon sales at retail in this state
including charges for rentals of living quarters in
hotels 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 passage any
federal law which authorizes states to require
requires
remote sellers to collect and remit sales and use taxes, effective the
first (1st) day of the
first (1st) state fiscal quarter following the change, the rate imposed under section 44-18-18 shall
be reduced from seven percent (7%) to six and
one-half percent (6.5%). The six and one-half
percent (6.5%) rate shall take effect on the date that
the state requires remote sellers to collect and
remit sale and use taxes.
44-18-18.1. Local
meals and beverage tax. -- (a) There is hereby levied and imposed,
upon every purchaser of a meal and/or beverage, in
addition to all other taxes and fees now
imposed by law, a local meals and beverage tax upon
each and every meal and/or beverage sold
within the state of
prepared in the eating and/or drinking establishment
or not and whether consumed at the premises
or not, at a rate of one percent of the gross
receipts. The tax shall be paid to the tax administrator
by the retailer at the time and in the manner
provided.
(b) All sums received
by the division of taxation under this section as taxes, penalties or
forfeitures, interest, costs of suit and fines shall
be distributed at least quarterly, credited and paid
by the state treasurer to the city or town where the
meals and beverages are delivered.
(c) When used in this
section, the following words have the following meanings:
(1)
"Beverage" means all nonalcoholic beverages, as well as alcoholic
beverages, beer,
lager beer, ale, porter, wine, similar fermented malt
or vinous liquor.
(2) "Eating and/or
drinking establishments" mean and include restaurants, bars, taverns,
lounges, cafeterias, lunch counters, drive-ins,
roadside ice cream and refreshment stands, fish and
chip places, fried chicken places, pizzerias, food and
drink concessions, or similar facilities in
amusement parks, bowling alleys, clubs, caterers,
drive-in theatres, industrial plants, race tracks,
shore resorts or other locations, lunch carts, mobile
canteens and other similar vehicles, and other
like places of business which furnish or provide
facilities for immediate consumption of food at
tables, chairs or counters or from trays, plates, cups
or other tableware or in parking facilities
provided primarily for the use of patrons in consuming
products purchased at the location.
Ordinarily, eating establishments do not mean and
include food stores and supermarkets. Eating
establishments do not mean "vending
machines," a self-contained automatic device that dispenses
for sale foods, beverages, or confection products.
Retailers selling prepared foods in bulk either in
customer-furnished containers or in the seller's
containers, for example "Soup and Sauce"
establishments, are deemed to be selling prepared
foods ordinarily for immediate consumption
and, as such, are considered eating establishments.
(3) "Meal"
means any prepared food or beverage offered or held out for sale by an eating
and/or drinking establishment for the purpose of being
consumed by any person to satisfy the
appetite and which is ready for immediate consumption.
All such food and beverage, unless
otherwise specifically exempted or excluded herein
shall be included, whether intended to be
consumed on the seller's premises or elsewhere,
whether designated as breakfast, lunch, snack,
dinner, supper or by some other name, and without
regard to the manner, time or place of service.
(d) This local meals
and beverage tax shall be administered and collected by the division
of taxation and unless provided to the contrary in
this chapter, all of the administration,
collection, and other provisions of chapters 18 and 19
of this article apply.
In recognition of the
work being performed by the Streamlined Sales and Use Tax
Governing Board, upon passage of any federal law
which authorizes states to require requires
remote sellers to collect and remit sales and use
taxes, effective the first (1st) day of the first (1st)
state fiscal quarter following the change, the rate imposed under section 44-18-18.1 shall be
increased from one percent (1%) to one and one-half percent (1.5%). The one and
one-half
percent (1.5%) rate shall take effect on the date that
the state requires remote sellers to collect and
remit sales and use taxes.
44-18-20. Use tax
imposed. -- (a) An excise tax is imposed on the storage, use, or other
consumption in this state of tangible personal
property, prewritten computer software delivered
electronically or by load and leave or services as
defined in 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 section 44-18-21 means and
includes
those defined in section 31-1-5(a) -- (e) and also
includes boat trailers, camping trailers, house
trailers, and mobile homes.
(d) Notwithstanding the
provisions contained in this section and in section 44-18-21
relating to the imposition of a use tax and liability
for this tax on certain casual sales, no tax is
payable in any casual sale:
(1) When the transferee
or purchaser is the spouse, mother, father, brother, sister, or
child of the transferor or seller;
(2) When the transfer
or sale is made in connection with the organization, reorganization,
dissolution, or partial liquidation of a business
entity; provided:
(i)
The last taxable sale, transfer, or use of the article being transferred or
sold was
subjected to a tax imposed by this chapter;
(ii) The transferee is
the business entity referred to or is a stockholder, owner, member,
or partner; and
(iii) Any gain or loss
to the transferor is not recognized for income tax purposes under
the provisions of the federal income tax law and
treasury regulations and rulings issued
thereunder;
(3) When the sale or
transfer is of a trailer, other than a camping trailer, of the type
ordinarily used for residential purposes and commonly
known as a house trailer or as a mobile
home; or
(4) When the transferee
or purchaser is exempt under the provisions of section 44-18-30
or other general law of this state or special act of
the general assembly of this state.
(e) The term
"casual" means a sale made by a person other than a retailer;
provided, that
in the case of a sale of a motor vehicle, the term
means a sale made by a person other than a
licensed motor vehicle dealer or an auctioneer at an
auction sale. In no case is the tax imposed
under the provisions of subsections (a) and (b) of
this section on the storage, use, or other
consumption in this state of a used motor vehicle less
than the product obtained by multiplying
the amount of the retail dollar value at the time of
purchase of the motor vehicle by the applicable
tax rate; provided, that where the amount of the sale
price exceeds the amount of the retail dollar
value, the tax is based on the sale price. The tax
administrator shall use as his or her guide the
retail dollar value as shown in the current issue of
any nationally recognized used vehicle guide
for appraisal purposes in this state. On request
within thirty (30) days by the taxpayer after
payment of the tax, if the tax administrator
determines that the retail dollar value as stated in this
subsection is inequitable or unreasonable, he or she
shall, after affording the taxpayer reasonable
opportunity to be heard, re-determine the tax.
(f) Every person making
more than five (5) retail sales of tangible personal property or
prewritten computer software delivered electronically
or by load and leave, 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) (1) "Casual
sale" includes a sale of tangible personal property not held or used by a
seller in the course of activities for which the
seller is required to hold a seller's permit or permits
or would be required to hold a seller's permit or
permits if the activities were conducted in this
state; provided, that the sale is not one of a series
of sales sufficient in number, scope, and
character (more than five (5) in any twelve (12) month
period) to constitute an activity for which
the seller is required to hold a seller's permit or
would be required to hold a seller's permit if the
activity were conducted in this state.
(2) Casual sales also
include sales made at bazaars, fairs, picnics, or similar events by
nonprofit organizations, which are organized for
charitable, educational, civic, religious, social,
recreational, fraternal, or literary purposes during
two (2) events not to exceed a total of six (6)
days duration each calendar year. Each event requires
the issuance of a permit by the division of
taxation. Where sales are made at events by a vendor,
which holds a sales tax permit and is not a
nonprofit organization, the sales are in the regular
course of business and are not exempt as casual
sales.
(h) The use tax imposed
under this section for the period commencing July 1, 1990 is at
the rate of seven percent (7%). In recognition of the
work being performed by the Streamlined
Sales and Use Tax Governing Board, upon passage of
any federal law which authorizes states to
require requires
remote sellers to collect and remit sales and use taxes, effective the
first (1st) day
of the first (1st) state fiscal quarter following the
change, the rate imposed under section 44-18-18
shall be reduced from seven percent (7.0%) to
six and one-half percent (6.5%). The six and one-
half percent (6.5%) rate shall take effect on the date
that the state requires remote sellers to collect
and remit sales and use taxes.
44-18-30. Gross
receipts exempt from sales and use taxes. -- There are exempted from
the taxes imposed by this chapter the following gross
receipts:
(1) Sales and uses
beyond constitutional power of state. - From the sale and from the
storage, use, or other consumption in this state of
tangible personal property the gross receipts
from the sale of which, or the storage, use, or other
consumption of which, this state is prohibited
from taxing under the Constitution of the
(2) Newspapers.
(i)
From the sale and from the storage, use, or other consumption in this state of
any
newspaper.
(ii)
"Newspaper" means an unbound publication printed on newsprint, which
contains
news, editorial comment, opinions, features,
advertising matter, and other matters of public
interest.
(iii)
"Newspaper" does not include a magazine, handbill, circular, flyer,
sales catalog, or
similar item unless the item is printed for and
distributed as a part of a newspaper.
(3) School meals. -
From the sale and from the storage, use, or other consumption in this
state of meals served by public, private, or parochial
schools, school districts, colleges,
universities, student organizations, and parent
teacher associations to the students or teachers of a
school, college, or university whether the meals are
served by the educational institutions or by a
food service or management entity under contract to
the educational institutions.
(4) Containers.
(i)
From the sale and from the storage, use, or other consumption in this state of:
(A) Non-returnable
containers, including boxes, paper bags, and wrapping materials
which are biodegradable and all bags and wrapping
materials utilized in the medical and healing
arts, when sold without the contents to persons who
place the contents in the container and sell
the contents with the container.
(B) Containers when
sold with the contents if the sale price of the contents is not
required to be included in the measure of the taxes
imposed by this chapter.
(C) Returnable
containers when sold with the contents in connection with a retail sale of
the contents or when resold for refilling.
(ii) As used in this
subdivision, the term "returnable containers" means containers of a
kind customarily returned by the buyer of the contents
for reuse. All other containers are "non-
returnable containers."
(5) (i) Charitable, educational, and religious organizations. -
From the sale to as in
defined in this section, and from the storage, use,
and other consumption in this state or any other
state of the
profit, "educational institutions" as
defined in subdivision (18) not operated for a profit, churches,
orphanages, and other institutions or organizations
operated exclusively for religious or charitable
purposes, interest free loan associations not operated
for profit, nonprofit organized sporting
leagues and associations and bands for boys and girls under
the age of nineteen (19) years, the
following vocational student organizations that are
state chapters of national vocational students
organizations: Distributive Education Clubs of
America, (DECA); Future Business Leaders of
of America/Home Economics Related Occupations
(FHA/HERD); and Vocational Industrial
Clubs of America (VICA), organized nonprofit golden
age and senior citizens clubs for men and
women, and parent teacher associations.
(ii) In the case of
contracts entered into with the federal government, its agencies or
instrumentalities, this state or any other state of
the
city, town, district, or other political subdivision
of the states, hospitals not operated for profit,
educational institutions not operated for profit,
churches, orphanages, and other institutions or
organizations operated exclusively for religious or charitable
purposes, the contractor may
purchase such materials and supplies (materials and/or
supplies are defined as those which are
essential to the project) that are to be utilized in
the construction of the projects being performed
under the contracts without payment of the tax.
(iii) The contractor
shall not charge any sales or use tax to any exempt agency,
institution, or organization but shall in that
instance provide his or her suppliers with certificates
in the form as determined by the division of taxation
showing the reason for exemption; and the
contractor's records must substantiate the claim for
exemption by showing the disposition of all
property so purchased. If any property is then used
for a nonexempt purpose, the contractor must
pay the tax on the property used.
(6) Gasoline. - From
the sale and from the storage, use, or other consumption in this state
of: (i) gasoline and other
products taxed under chapter 36 of title 31, and (ii) fuels used for the
propulsion of airplanes.
(7) Purchase for
manufacturing purposes.
(i)
From the sale and from the storage, use, or other consumption in this state of
computer software, tangible personal property,
electricity, natural gas, artificial gas, steam,
refrigeration, and water, when the property or service
is purchased for the purpose of being
manufactured into a finished product for resale, and
becomes an ingredient, component, or
integral part of the manufactured, compounded,
processed, assembled, or prepared product, or if
the property or service is consumed in the process of
manufacturing for resale computer software,
tangible personal property, electricity, natural gas,
artificial gas, steam, refrigeration, or water.
(ii)
"Consumed" means destroyed, used up, or worn out to the degree or
extent that the
property cannot be repaired, reconditioned, or
rendered fit for further manufacturing use.
(iii)
"Consumed" includes mere obsolescence.
(iv)
"Manufacturing" means and includes manufacturing, compounding,
processing,
assembling, preparing, or producing.
(v) "Process of
manufacturing" means and includes all production operations performed
in the producing or processing room, shop, or plant,
insofar as the operations are a part of and
connected with the manufacturing for resale of
tangible personal property, electricity, natural gas,
artificial gas, steam, refrigeration, or water and all
production operations performed insofar as the
operations are a part of and connected with the manufacturing
for resale of computer software.
(vi) "Process of
manufacturing" does not mean or include administration operations such
as general office operations, accounting, collection,
sales promotion, nor does it mean or include
distribution operations which occur subsequent to
production operations, such as handling,
storing, selling, and transporting the manufactured
products, even though the administration and
distribution operations are performed by or in
connection with a manufacturing business.
(8) State and political
subdivisions. - From the sale to, and from the storage, use, or other
consumption by, this state, any city, town, district,
or other political subdivision of this state.
Every redevelopment agency created pursuant to chapter
31 of title 45 is deemed to be a
subdivision of the municipality where it is located.
(9) Food and food
ingredients. - From the sale and storage, use, or other consumption in
this state of food and food ingredients as defined in
section 44-18-7.1(l).
For the purposes of
this exemption "food and food ingredients" shall not include candy,
soft drinks, dietary supplements, alcoholic beverages,
tobacco, food sold through vending
machines or prepared food (as those terms are defined
in section 44-18-7.1, unless the prepared
food is:
(i)
Sold by a seller whose primary NAICS classification is manufacturing in sector
311,
except sub-sector 3118 (bakeries);
(ii) Sold in an
unheated state by weight or volume as a single item;
(iii) Bakery items,
including bread, rolls, buns, biscuits, bagels, croissants, pastries,
donuts, danish, cakes,
tortes, pies, tarts, muffins, bars, cookies, tortillas; and
is not sold with
utensils provided by the seller, including plates, knives, forks, spoons,
glasses, cups, napkins, or straws.
(10) Medicines, drugs
and durable medical equipment. - From the sale and from the
storage, use, or other consumption in this state, of;
(i)
"Drugs" as defined in section 44-18-7.1(h)(i),
sold on prescriptions, medical oxygen,
and insulin whether or not sold on prescription. For
purposes of this exemption drugs shall not
include over-the-counter drugs and grooming and
hygiene products as defined in section 44-18-
7.1(h)(iii).
(ii) Durable medical
equipment as defined in section 44-18-7.1(k) for home use only,
including, but not limited to, syringe infusers,
ambulatory drug delivery pumps, hospital beds,
convalescent chairs, and chair lifts. Supplies used in
connection with syringe infusers and
ambulatory drug delivery pumps which are sold on
prescription to individuals to be used by them
to dispense or administer prescription drugs, and
related ancillary dressings and supplies used to
dispense or administer prescription drugs shall also
be exempt from tax.
(11) Prosthetic devices
and mobility enhancing equipment. - From the sale and from the
storage, use, or other consumption in this state, of
prosthetic devices as defined in section 44-18-
7.1(t), sold on prescription, including but not
limited to, artificial limbs, dentures, spectacles and
eyeglasses, and artificial eyes; artificial hearing
devices and hearing aids, whether or not sold on
prescription and mobility enhancing equipment as
defined in section 44-18-7.1(p) including
wheelchairs, crutches and canes.
(12) Coffins, caskets,
and burial garments. - From the sale and from the storage, use, or
other consumption in this state of coffins or caskets,
and shrouds or other burial garments which
are ordinarily sold by a funeral director as part of
the business of funeral directing.
(13) Motor vehicles
sold to nonresidents.
(i)
From the sale, subsequent to June 30, 1958, of a motor vehicle to a bona fide
nonresident of this state who does not register the
motor vehicle in this state, whether the sale or
delivery of the motor vehicle is made in this state or
at the place of residence of the nonresident.
A motor vehicle sold to a bona fide nonresident whose
state of residence does not allow a like
exemption to its nonresidents is not exempt from the
tax imposed under section 44-18-20. In that
event the bona fide nonresident pays a tax to
that would be imposed in his or her state of residence
not to exceed the rate that would have been
imposed under section 44-18-20. Notwithstanding any
other provisions of law, a licensed motor
vehicle dealer shall add and collect the tax required
under this subdivision and remit the tax to the
tax administrator under the provisions of chapters 18
and 19 of this title. When a
licensed motor vehicle dealer is required to add and
collect the sales and use tax on the sale of a
motor vehicle to a bona fide nonresident as provided
in this section, the dealer in computing the
tax takes into consideration the law of the state of
the nonresident as it relates to the trade-in of
motor vehicles.
(ii) The tax
administrator, in addition to the provisions of sections 44-19-27 and 44-19-
28, may require any licensed motor vehicle dealer to
keep records of sales to bona fide
nonresidents as the tax administrator deems reasonably
necessary to substantiate the exemption
provided in this subdivision, including the affidavit
of a licensed motor vehicle dealer that the
purchaser of the motor vehicle was the holder of, and
had in his or her possession a valid out of
state motor vehicle registration or a valid out of
state driver's license.
(iii) Any nonresident
who registers a motor vehicle in this state within ninety (90) days
of the date of its sale to him or her is deemed to
have purchased the motor vehicle for use,
storage, or other consumption in this state, and is
subject to, and liable for the use tax imposed
under the provisions of section 44-18-20.
(14) Sales in public
buildings by blind people. - From the sale and from the storage, use,
or other consumption in all public buildings in this
state of all products or wares by any person
licensed under section 40-9-11.1.
(15) Air and water
pollution control facilities. - From the sale, storage, use, or other
consumption in this state of tangible personal
property or supplies acquired for incorporation into
or used and consumed in the operation of a facility,
the primary purpose of which is to aid in the
control of the pollution or contamination of the
waters or air of the state, as defined in chapter 12
of title 46 and chapter 25 of title 23, respectively,
and which has been certified as approved for
that purpose by the director of environmental
management. The director of environmental
management may certify to a portion of the tangible
personal property or supplies acquired for
incorporation into those facilities or used and
consumed in the operation of those facilities to the
extent that that portion has as its primary purpose
the control of the pollution or contamination of
the waters or air of this state. As used in this
subdivision, "facility" means any land, facility,
device, building, machinery, or equipment.
(16) Camps. - From the
rental charged for living quarters, or sleeping or housekeeping
accommodations at camps or retreat houses operated by
religious, charitable, educational, or
other organizations and associations mentioned in subdivision
(5), or by privately owned and
operated summer camps for children.
(17) Certain
institutions. - From the rental charged for living or sleeping quarters in an
institution licensed by the state for the
hospitalization, custodial, or nursing care of human beings.
(18) Educational
institutions. - From the rental charged by any educational institution for
living quarters, or sleeping or housekeeping
accommodations or other rooms or accommodations
to any student or teacher necessitated by attendance
at an educational institution. "Educational
institution" as used in this section means an
institution of learning not operated for profit which is
empowered to confer diplomas, educational, literary,
or academic degrees, which has a regular
faculty, curriculum, and organized body of pupils or
students in attendance throughout the usual
school year, which keeps and furnishes to students and
others records required and accepted for
entrance to schools of secondary, collegiate, or
graduate rank, no part of the net earnings of which
inures to the benefit of any individual.
(19) Motor vehicle and
adaptive equipment for persons with disabilities.
(i)
From the sale of: (A) special adaptations, (B) the component parts of the
special
adaptations, or (C) a specially adapted motor vehicle;
provided, that the owner furnishes to the
tax administrator an affidavit of a licensed physician
to the effect that the specially adapted motor
vehicle is necessary to transport a family member with
a disability or where the vehicle has been
specially adapted to meet the specific needs of the
person with a disability. This exemption
applies to not more than one motor vehicle owned and
registered for personal, noncommercial
use.
(ii) For the purpose of
this subsection the term "special adaptations" includes, but is not
limited to: wheelchair lifts; wheelchair carriers;
wheelchair ramps; wheelchair securements; hand
controls; steering devices; extensions, relocations,
and crossovers of operator controls; power-
assisted controls; raised tops or dropped floors;
raised entry doors; or alternative signaling
devices to auditory signals.
(iii) From the sale of:
(a) special adaptations, (b) the component parts of the special
adaptations, for a "wheelchair accessible
taxicab" as defined in section 39-14-1 and/or a
"wheelchair accessible public motor vehicle"
as defined in section 39-14.1-1.
(iv) For the purpose of
this subdivision the exemption for a "specially adapted motor
vehicle" means a use tax credit not to exceed the
amount of use tax that would otherwise be due
on the motor vehicle, exclusive of any adaptations.
The use tax credit is equal to the cost of the
special adaptations, including installation.
(20) Heating fuels. -
From the sale and from the storage, use, or other consumption in
this state of every type of fuel used in the heating
of homes and residential premises.
(21) Electricity and
gas. - From the sale and from the storage, use, or other consumption
in this state of electricity and gas furnished for
domestic use by occupants of residential premises.
(22) Manufacturing
machinery and equipment.
(i)
From the sale and from the storage, use, or other consumption in this state of tools,
dies, and molds, and machinery and equipment
(including replacement parts), and related items to
the extent used in an industrial plant in connection
with the actual manufacture, conversion, or
processing of tangible personal property, or to the extent
used in connection with the actual
manufacture, conversion or processing of computer
software as that term is utilized in industry
numbers 7371, 7372, and 7373 in the standard
industrial classification manual prepared by the
technical committee on industrial classification,
office of statistical standards, executive office of
the president,
machinery and equipment used in the furnishing of
power to an industrial manufacturing plant.
For the purposes of this subdivision, "industrial
plant" means a factory at a fixed location
primarily engaged in the manufacture, conversion, or
processing of tangible personal property to
be sold in the regular course of business;
(ii) Machinery and
equipment and related items are not deemed to be used in connection
with the actual manufacture, conversion, or processing
of tangible personal property, or in
connection with the actual manufacture, conversion or
processing of computer software as that
term is utilized in industry numbers 7371, 7372, and
7373 in the standard industrial classification
manual prepared by the technical committee on
industrial classification, office of statistical
standards, executive office of the president,
time to time, to be sold to the extent the property is
used in administration or distribution
operations;
(iii) Machinery and equipment
and related items used in connection with the actual
manufacture, conversion, or processing of any computer
software or any tangible personal
property which is not to be sold and which would be
exempt under subdivision (7) or this
subdivision if purchased from a vendor or machinery
and equipment and related items used
during any manufacturing, converting or processing
function is exempt under this subdivision
even if that operation, function, or purpose is not an
integral or essential part of a continuous
production flow or manufacturing process;
(iv) Where a portion of
a group of portable or mobile machinery is used in connection
with the actual manufacture, conversion, or processing
of computer software or tangible personal
property to be sold, as previously defined, that
portion, if otherwise qualifying, is exempt under
this subdivision even though the machinery in that
group is used interchangeably and not
otherwise identifiable as to use.
(23) Trade-in value of
motor vehicles. - From the sale and from the storage, use, or other
consumption in this state of so much of the purchase
price paid for a new or used automobile as is
allocated for a trade-in allowance on the automobile
of the buyer given in trade to the seller, or of
the proceeds applicable only to the 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 section 20-2-27.1
which meet the following criteria: (i) the operator must have a current U.S.C.G. license to
carry
passengers for hire; (ii) U.S.C.G. vessel
documentation in the coast wide fishery trade; (iii)
U.S.C.G. vessel documentation as to proof of
boat registration to prove
commercial passenger carrying fishing vessel to carry
passengers for fishing. The vessel must be
able to demonstrate that at least fifty percent (50%)
of its annual gross income derives from
charters or provides documentation of a minimum of one
hundred (100) charter trips annually; (v)
the vessel must have a valid
shall implement the provisions of this subdivision by
promulgating rules and regulations relating
thereto.
(27) Clothing and footwear.
- From the sales of articles of clothing, including footwear,
intended to be worn or carried on or about the human
body for 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 section 44-18-7.1(f).
In recognition of the work being performed by the
Streamlined Sales and Use Tax Governing
Board, upon passage of any federal law which authorizes
states to require requires remote sellers
to collect and remit sales and use taxes, effective
the first (1st) day of the first (1st) state fiscal
quarter following the change, this unlimited exemption will apply as it did
prior to October 1,
2012. The unlimited exemption on sales of clothing
and footwear shall take effect on the date that
the state requires remote sellers to collect and remit
sales and use taxes.
(28) Water for
residential use. - From the sale and from the storage, use, or other
consumption in this state of water furnished for
domestic use by occupants of residential
premises.
(29) Bibles. -
[Unconstitutional; see Ahlburn v.
Notes to Decisions.]From the sale and from the
storage, use, or other consumption in the state of
any canonized scriptures of any tax-exempt nonprofit
religious organization including, but not
limited to, the Old Testament and the New Testament
versions.
(30) Boats.
(i)
From the sale of a boat or vessel to a bona fide nonresident of this state who
does not
register the boat or vessel in this state, or document
the boat or vessel with the
government at a home port within the state, whether
the sale or delivery of the boat or vessel is
made in this state or elsewhere; provided, that the
nonresident transports the boat within thirty
(30) days after delivery by the seller outside the
state for use thereafter solely outside the state.
(ii) The tax
administrator, in addition to the provisions of sections 44-19-17 and 44-19-
28, may require the seller of the boat or vessel to
keep records of the sales to bona fide
nonresidents as the tax administrator deems reasonably
necessary to substantiate the exemption
provided in this subdivision, including the affidavit
of the seller that the buyer represented
himself or herself to be a bona fide nonresident of
this state and of the buyer that he or she is a
nonresident of this state.
(31) Youth activities
equipment. - From the sale, storage, use, or other consumption in
this state of items for not more than twenty dollars
($20.00) each by nonprofit
eleemosynary organizations, for the purposes of youth
activities which the organization is formed
to sponsor and support; and by accredited elementary
and secondary schools for the purposes of
the schools or of organized activities of the enrolled
students.
(32) Farm equipment. -
From the sale and from the storage or use of machinery and
equipment used directly for commercial farming and
agricultural production; including, but not
limited to, tractors, ploughs, harrows, spreaders,
seeders, milking machines, silage conveyors,
balers, bulk milk storage tanks, trucks with farm
plates, mowers, combines, irrigation equipment,
greenhouses and greenhouse coverings, graders and
packaging machines, tools and supplies and
other farming equipment, including replacement parts,
appurtenant to or used in connection with
commercial farming and tools and supplies used in the
repair and maintenance of farming
equipment. "Commercial farming" means the
keeping or boarding of five (5) or more horses or
the production within this state of agricultural
products, including, but not limited to, field or
orchard crops, livestock, dairy, and poultry, or their
products, where the keeping, boarding, or
production provides at least two thousand five hundred
dollars ($2,500) in annual gross sales to
the operator, whether an individual, a group, a
partnership, or a corporation for exemptions issued
prior to July 1, 2002; for exemptions issued or
renewed after July 1, 2002, there shall be two (2)
levels. Level I shall be based on proof of annual
gross sales from commercial farming of at least
twenty-five hundred dollars ($2,500) and shall be
valid for purchases subject to the exemption
provided in this subdivision except for motor vehicles
with an excise tax value of five thousand
dollars ($5,000) or greater; Level II shall be based
on proof of annual gross sales from
commercial farming of at least ten thousand dollars
($10,000) or greater and shall be valid for
purchases subject to the exemption provided in this
subdivision including motor vehicles with an
excise tax value of five thousand dollars ($5,000) or
greater. For the initial issuance of the
exemptions, proof of the requisite amount of annual
gross sales from commercial farming shall be
required for the prior year; for any renewal of an
exemption granted in accordance with this
subdivision at either Level I or Level II, proof of
gross annual sales from commercial farming at
the requisite amount shall be required for each of the
prior two (2) years. Certificates of
exemption issued or renewed after July 1, 2002, shall
clearly indicate the level of the exemption
and be valid for four (4) years after the date of
issue. This exemption applies even if the same
equipment is used for ancillary uses, or is
temporarily used for a non-farming or a non-
agricultural purpose, but shall not apply to motor
vehicles acquired after July 1, 2002, unless the
vehicle is a farm vehicle as defined pursuant to
section 31-1-8 and is eligible for registration
displaying farm plates as provided for in section
31-3-31.
(33) Compressed air. -
From the sale and from the storage, use, or other consumption in
the state of compressed air.
(34) Flags. - From the
sale and from the storage, consumption, or other use in this state
of
(35) Motor vehicle and
adaptive equipment to certain veterans. - From the sale of a
motor vehicle and adaptive equipment to and for the
use of a veteran with a service-connected
loss of or the loss of use of a leg, foot, hand, or
arm, or any veteran who is a double amputee,
whether service connected or not. The motor vehicle
must be purchased by and especially
equipped for use by the qualifying veteran.
Certificate of exemption or refunds of taxes paid is
granted under rules or regulations that the tax
administrator may prescribe.
(36) Textbooks. - From
the sale and from the storage, use, or other consumption in this
state of textbooks by an "educational
institution" as defined in subdivision (18) of this section and
as well as any educational institution within the
purview of section 16-63-9(4) and used textbooks
by any purveyor.
(37) Tangible personal
property and supplies used in on-site hazardous waste recycling,
reuse, or treatment. - From the sale, storage, use, or
other consumption in this state of tangible
personal property or supplies used or consumed in the
operation of equipment, the exclusive
function of which is the recycling, reuse, or recovery
of materials (other than precious metals, as
defined in subdivision (24)(ii) of this section) from
the treatment of "hazardous wastes", as
defined in section 23-19.1-4, where the
"hazardous wastes" are generated in
by the same taxpayer and where the personal property
is located at, in, or adjacent to a generating
facility of the taxpayer in
the department of environmental management certifying
that the equipment and/or supplies as
used, or consumed, qualify for the exemption under
this subdivision. If any information relating
to secret processes or methods of manufacture,
production, or treatment is disclosed to the
department of environmental management only to procure
an order, and is a "trade secret" as
defined in section 28-21-10(b), it is not open to
public inspection or publicly disclosed unless
disclosure is required under chapter 21 of title 28 or
chapter 24.4 of title 23.
(38) Promotional and
product literature of boat manufacturers. - From the sale and from
the storage, use, or other consumption of promotional
and product literature of boat
manufacturers shipped to points outside of Rhode
Island which either: (i) accompany the product
which is sold, (ii) are shipped in bulk to out of state
dealers for use in the sale of the product, or
(iii) are mailed to customers at no charge.
(39) Food items paid
for by food stamps. - From the sale and from the storage, use, or
other consumption in this state of eligible food items
payment for which is properly made to the
retailer in the form of
Act of 1977, 7 U.S.C. section 2011 et seq.
(40) Transportation
charges. - From the sale or hiring of motor carriers as defined in
section 39-12-2(l) to haul goods, when the contract or
hiring cost is charged by a motor freight
tariff filed with the
the number of hours spent on the job.
(41) Trade-in value of
boats. - From the sale and from the storage, use, or other
consumption in this state of so much of the purchase
price paid for a new or used boat as is
allocated for a trade-in allowance on the boat of the
buyer given in trade to the seller or of the
proceeds applicable only to the boat as are received
from an insurance claim as a result of a stolen
or damaged boat, towards the purchase of a new or used
boat by the buyer.
(42) Equipment used for
research and development. - From the sale and from the
storage, use, or other consumption of equipment to the
extent used for research and development
purposes by a qualifying firm. For the purposes of
this subdivision, "qualifying firm" means a
business for which the use of research and development
equipment is an integral part of its
operation, and "equipment" means scientific
equipment, computers, software, and related items.
(43) Coins. - From the
sale and from the other consumption in this state of coins having
numismatic or investment value.
(44) Farm structure
construction materials. - Lumber, hardware and other materials used
in the new construction of farm structures, including
production facilities such as, but not limited
to, farrowing sheds, free
stall and stanchion barns, milking parlors, silos, poultry barns, laying
houses, fruit and vegetable storages, rooting cellars,
propagation rooms, greenhouses, packing
rooms, machinery storage, seasonal farm worker
housing, certified farm markets, bunker and
trench silos, feed storage sheds, and any other
structures used in connection with commercial
farming.
(45) Telecommunications
carrier access service. - Carrier access service or
telecommunications service when purchased by a
telecommunications company from another
telecommunications company to facilitate the provision
of telecommunications service.
(46) Boats or vessels
brought into the state exclusively for winter storage, maintenance,
repair or sale. - Notwithstanding the provisions of
sections 44-18-10, 44-18-11, 44-18-20, the tax
imposed by section 44-18-20 is not applicable for the
period commencing on the first day of
October in any year to and including the 30th day of
April next succeeding with respect to the use
of any boat or vessel within this state exclusively
for purposes of: (i) delivery of the vessel to a
facility in this state for storage, including dry
storage and storage in water by means of apparatus
preventing ice damage to the hull, maintenance, or
repair; (ii) the actual process of storage,
maintenance, or repair of the boat or vessel; or (iii)
storage for the purpose of selling the boat or
vessel.
(47) Jewelry display
product. - From the sale and from the storage, use, or other
consumption in this state of tangible personal
property used to display any jewelry product;
provided, that title to the jewelry display product is
transferred by the jewelry manufacturer or
seller and that the jewelry display product is shipped
out of state for use solely outside the state
and is not returned to the jewelry manufacturer or
seller.
(48) Boats or vessels
generally. - Notwithstanding the provisions of this chapter, the tax
imposed by sections 44-18-20 and 44-18-18 shall not apply
with respect to the sale and to the
storage, use, or other consumption in this state of
any new or used boat. The exemption provided
for in this subdivision does not apply after October
1, 1993, unless prior to October 1, 1993, the
federal ten percent (10%) surcharge on luxury boats is
repealed.
(49) Banks and
Regulated investment companies interstate toll-free calls. -
Notwithstanding the provisions of this chapter, the
tax imposed by this chapter does not apply to
the furnishing of interstate and international,
toll-free terminating telecommunication service that
is used directly and exclusively by or for the benefit
of an eligible company as defined in this
subdivision; provided, that an eligible company
employs on average during the calendar year no
less than five hundred (500) "full-time
equivalent employees", as that term is defined in section
42-64.5-2. For purposes of this section, an
"eligible company" means a "regulated investment
company" as that term is defined in the Internal
Revenue Code of 1986, 26 U.S.C. section 1 et
seq., or a corporation to the extent the service is
provided, directly or indirectly, to or on behalf of
a regulated investment company, an employee benefit
plan, a retirement plan or a pension plan or
a state chartered bank.
(50) Mobile and
manufactured homes generally. - From the sale and from the storage,
use, or other consumption in this state of mobile
and/or manufactured homes as defined and
subject to taxation pursuant to the provisions of chapter
44 of title 31.
(51) Manufacturing
business reconstruction materials.
(i)
From the sale and from the storage, use or other consumption in this state of
lumber,
hardware, and other building materials used in the
reconstruction of a manufacturing business
facility which suffers a disaster, as defined in this
subdivision, in this state. "Disaster" means any
occurrence, natural or otherwise, which results in the
destruction of sixty percent (60%) or more
of an operating manufacturing business facility within
this state. "Disaster" does not include any
damage resulting from the willful act of the owner of
the manufacturing business facility.
(ii) Manufacturing
business facility includes, but is not limited to, the structures housing
the production and administrative facilities.
(iii) In the event a
manufacturer has more than one manufacturing site in this state, the
sixty percent (60%) provision applies to the damages
suffered at that one site.
(iv) To the extent that
the costs of the reconstruction materials are reimbursed by
insurance, this exemption does not apply.
(52) Tangible personal
property and supplies used in the processing or preparation of
floral products and floral arrangements. - From the
sale, storage, use, or other consumption in this
state of tangible personal property or supplies
purchased by florists, garden centers, or other like
producers or vendors of flowers, plants, floral
products, and natural and artificial floral
arrangements which are ultimately sold with flowers,
plants, floral products, and natural and
artificial floral arrangements or are otherwise used
in the decoration, fabrication, creation,
processing, or preparation of flowers, plants, floral
products, or natural and artificial floral
arrangements, including descriptive labels, stickers,
and cards affixed to the flower, plant, floral
product or arrangement, artificial flowers, spray
materials, floral paint and tint, plant shine, flower
food, insecticide and fertilizers.
(53) Horse food
products. - From the sale and from the storage, use, or other
consumption in this state of horse food products
purchased by a person engaged in the business of
the boarding of horses.
(54) Non-motorized
recreational vehicles sold to nonresidents.
(i)
From the sale, subsequent to June 30, 2003, of a non-motorized recreational
vehicle to
a bona fide nonresident of this state who does not
register the non-motorized recreational vehicle
in this state, whether the sale or delivery of the
non-motorized recreational vehicle is made in this
state or at the place of residence of the nonresident;
provided, that a non-motorized recreational
vehicle sold to a bona fide nonresident whose state of
residence does not allow a like exemption
to its nonresidents is not exempt from the tax imposed
under section 44-18-20; provided, further,
that in that event the bona fide nonresident pays a
tax to
to the rate that would be imposed in his or her state
of residence not to exceed the rate that would
have been imposed under section 44-18-20.
Notwithstanding any other provisions of law, a
licensed non-motorized recreational vehicle dealer
shall add and collect the tax required under
this subdivision and remit the tax to the tax
administrator under the provisions of chapters 18 and
19 of this title. Provided, that when a
dealer is required to add and collect the sales and use
tax on the sale of a non-motorized
recreational vehicle to a bona fide nonresident as
provided in this section, the dealer in computing
the tax takes into consideration the law of the state
of the nonresident as it relates to the trade-in
of motor vehicles.
(ii) The tax
administrator, in addition to the provisions of sections 44-19-27 and 44-19-
28, may require any licensed non-motorized
recreational vehicle dealer to keep records of sales to
bona fide nonresidents as the tax administrator deems
reasonably necessary to substantiate the
exemption provided in this subdivision, including the
affidavit of a licensed non-motorized
recreational vehicle dealer that the purchaser of the
non-motorized recreational vehicle was the
holder of, and had in his or her possession a valid
out-of-state non-motorized recreational vehicle
registration or a valid out-of-state driver's license.
(iii) Any nonresident
who registers a non-motorized recreational vehicle in this state
within ninety (90) days of the date of its sale to him
or her is deemed to have purchased the non-
motorized recreational vehicle for use, storage, or
other consumption in this state, and is subject
to, and liable for the use tax imposed under the
provisions of section 44-18-20.
(iv)
"Non-motorized recreational vehicle" means any portable dwelling
designed and
constructed to be used as a temporary dwelling for
travel, camping, recreational, and vacation use
which is eligible to be registered for highway use,
including, but not limited to, "pick-up coaches"
or "pick-up campers," "travel
trailers," and "tent trailers" as those terms are defined in
chapter 1
of title 31.
(55) Sprinkler and fire
alarm systems in existing buildings. - From the sale in this state of
sprinkler and fire alarm systems, emergency lighting
and alarm systems, and from the sale of the
materials necessary and attendant to the installation
of those systems, that are required in
buildings and occupancies existing therein in July
2003, in order to comply with any additional
requirements for such buildings arising directly from
the enactment of the Comprehensive Fire
Safety Act of 2003, and that are not required by any
other provision of law or ordinance or
regulation adopted pursuant to that Act. The exemption
provided in this subdivision shall expire
on December 31, 2008.
(56) Aircraft. -
Notwithstanding the provisions of this chapter, the tax imposed by
sections 44-18-18 and 44-18-20 shall not apply with respect
to the sale and to the storage, use, or
other consumption in this state of any new or used
aircraft or aircraft parts.
(57) Renewable energy
products. - Notwithstanding any other provisions of Rhode
Island general laws the following products shall also
be exempt from sales tax: solar photovoltaic
modules or panels, or any module or panel that
generates electricity from light; solar thermal
collectors, including, but not limited to, those
manufactured with flat glass plates, extruded
plastic, sheet metal, and/or evacuated tubes;
geothermal heat pumps, including both water-to-
water and water-to-air type pumps; wind turbines;
towers used to mount wind turbines if
specified by or sold by a wind turbine manufacturer;
DC to AC inverters that interconnect with
utility power lines; manufactured mounting racks and
ballast pans for solar collector, module or
panel installation. Not to include materials that
could be fabricated into such racks; monitoring
and control equipment, if specified or supplied by a
manufacturer of solar thermal, solar
photovoltaic, geothermal, or wind energy systems or if
required by law or regulation for such
systems but not to include pumps, fans or plumbing or
electrical fixtures unless shipped from the
manufacturer affixed to, or an integral part of,
another item specified on this list; and solar storage
tanks that are part of a solar domestic hot water
system or a solar space heating system. If the tank
comes with an external heat exchanger it shall also be
tax exempt, but a standard hot water tank is
not exempt from state sales tax.
(58) Returned property.
- The amount charged for property returned by customers upon
rescission of the contract of sale when the entire
amount exclusive of handling charges paid for
the property is refunded in either cash or credit, and
where the property is returned within one
hundred twenty (120) days from the date of delivery.
(59) Dietary
Supplements. - From the sale and from the storage, use or other
consumption of dietary supplements as defined in
section 44-18-7.1(l)(v), sold on prescriptions.
(60) Blood. - From the
sale and from the storage, use or other consumption of human
blood.
(61) 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 section 31-47.3-4 of
the general laws.
(63) Feed for certain
animals used in commercial farming. - From the sale of feed for
animals as described in subsection 44-18-30(61).
(64) Alcoholic
beverages. - From the sale and storage, use, or other consumption in this
state by a Class A licensee of alcoholic beverages, as
defined in section 44-18-7.1, excluding beer
and malt beverages from December 1, 2013 through March
31, 2015; provided, further,
notwithstanding section 6-13-1 or any other general or
public law to the contrary, alcoholic
beverages, as defined in section 44-18-7.1, shall not
be subject to minimum markup from
December 1, 2013 through March 31, 2015.
SECTION
4. 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 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 §
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)(a)
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 US Department of Health and Human Services of a
state plan amendment submitted by 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.
(b) There is also
imposed a hospital licensing fee at the rate of five and two hundred
forty-six thousandths percent (5.246%) upon the net
patient services revenue of every hospital for
the hospital's first fiscal year ending on or after
January 1, 2012, 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 14, 2014 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 16,
2014, make a return to the tax administrator
containing the correct computation of net patient
services revenue for the hospital fiscal year
ending September 30, 2012, 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, 2012 2013,
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
5. Chapter 44-1 of the General Laws entitled "State Tax Officials" is
hereby
amended by adding thereto
the following section:
44-1-35. Outside
Collection Agencies. -- The tax administrator may retain by written
contract collection agencies licensed under
another state or the
state of
SECTION
6. Title 44 of the General Laws entitled "Taxation" is hereby amended
by
adding thereto the following
chapter:
CHAPTER
68
TAX
PREPARERS ACT OF 2013
44-68-1. Short
title. -- This chapter shall be known as the "Tax Preparers
Act".
44-68-2.
Definitions. -- (a) "Tax return preparer" means an
individual who prepares a
substantial portion of any return for compensation.
Tax return preparers include individuals
required to register with the Internal Revenue Service
as a tax return preparer and who have a
Preparer Tax Identification Number (PTIN). For the
purpose of this chapter the following
individuals shall not be considered tax return
preparers:
(1) Volunteer tax
return preparers; or
(2) Employees of a
tax return preparer and employees of a commercial tax return
preparation business who provide only clerical,
administration or other similar services.
(b) "Preparer
Tax Identification Number" means the number issued by the Internal
Revenue Service (IRS) to paid preparers to use on all
the returns they prepare.
(c)
"Return" shall mean any tax report, return, claim for refund or
attachment to any
report, return and/or claim for return filed with the
tax administrator pursuant to the tax laws of
this state.
44-68-3. Duties
and Responsibilities. -- (a) A tax return preparer who prepares any
return that is submitted to the tax administrator must
comply with all state laws and all applicable
regulations promulgated by the tax administrator.
(b) A tax return
preparer must sign and include his/her Preparer Tax Identification
Number on all returns prepared and filed with the
Division of Taxation.
44-68-4. Civil
Penalties. -- (a) Failure To Be Diligent in Determining Eligibility
for or
Amount of Earned Income Credit. Upon a determination
by the tax administrator that a tax return
preparer prepared a return(s) and failed to comply
with due diligence requirements imposed by
regulations issued by the tax administrator with
respect to determining eligibility for, or the
amount of, the credit allowable by section 44-30-2.6(c)(2)(N),
the tax return preparer shall pay a
penalty of five hundred dollars ($500) for each such
return and/or claim.
(b) Failure To Be
Diligent in Determining Eligibility for Property Tax Relief Credit.
Upon a determination by the tax administrator that a
tax return preparer prepared a return(s) and
failed to comply with due diligence requirements
imposed by regulations issued by the tax
administrator with respect to determining eligibility
for, or the amount of, the property tax relief
credit allowable by section 44-33-1 et seq., the tax
return preparer shall pay a penalty of five
hundred dollars ($500) for each such return.
(c) Tax Return
Preparer Civil Penalties. Upon a determination by the tax administrator
that a tax return preparer willfully prepared,
assisted in preparing, or caused the preparation of a
return(s) filed with the division of taxation with
intent to wrongfully obtain a property tax relief
credit or with the intent to evade or reduce a tax
obligation, the tax return preparer shall be liable
for a penalty of one thousand dollars ($1,000), or
five hundred ($500) for each return so filed
during any calendar year, whichever is greater.
(d) The tax
administrator may suspend or revoke the privilege of a tax return preparer to
prepare and/or file returns with the division of
taxation upon a determination that the tax return
preparer has failed to comply with or violated any
provision of this section, any regulations issued
by the tax administrator, or with any provision of any
other laws relative to the preparation of tax
returns. Any tax return preparer receiving a notice of
intent to suspend or revoke the privilege to
file tax returns with the division of taxation may
request a hearing on the notice of intent to
suspend or revoke; provided that said request for a
hearing must be made within thirty (30) days
of such notice to suspend or revoke. If, after
hearing, the tax return preparer is aggrieved by a
decision of the tax administrator (or his or her
designated hearing officer), the tax return preparer
may, within thirty (30) days after notice of the
decision is sent to the tax return preparer by
certified or registered mail, directed to their last
known address, petition the sixth division of the
district court pursuant to chapter 8 of title 8,
setting forth the reasons why the decision is alleged
to be erroneous and praying for relief therefrom.
44-68-5. Criminal
Penalties. -- Any tax return preparer who has previously been
assessed a penalty by the tax administrator under
section 44-68-4(c) who is found by a court of
competent jurisdiction to have thereafter willfully
prepared, assisted in preparing, or caused a
preparation of another false tax return or claim for
refund which was filed with the division of
taxation with the intent to wrongfully obtain a
property relief credit or the intent to wrongfully
evade or reduce a tax obligation shall be guilty of a
felony and, on conviction, shall be subject to
a fine not exceeding fifty-thousand dollars ($50,000)
or imprisonment not exceeding five (5)
years or both.
44-68-6.
Regulations. -- The tax administrator shall promulgate rules and
regulations in
order to implement the provisions of this chapter.
44-68-7.
Severability. -- If any provision of this chapter or the application
of this chapter
to any tax return preparer is held invalid, the
remainder of this chapter and the application of the
provisions to other tax return preparers or
circumstances shall not be affected.
SECTION
7. Section 28-21-16 of the General Laws entitled "Hazardous Substances
Right to Know Act -
Funding" is hereby amended to read as follows:
28-21-16. Funding
-- Contracts for services -- Exemption for copiers -- Appeals. --
(a) The director of labor and training shall determine
which employers are subject to the
provisions of this chapter. and shall assess
and collect an annual assessment of forty-two dollars
($42.00) which shall be levied against all those
employers, which result in the funding for the
implementation of this chapter. The employer shall be
obligated to pay the assessment. No
employer shall be exempt from the provisions of this
chapter unless and until a request for
exemption is filed and approval is granted; provided that
public and private libraries shall be
exempted
exempt from this requirement. The funds shall be deposited as general
revenue.
(b) The director of
labor and training may contract with qualified agencies and/or parties
for technical services performed in conjunction with
this chapter.
(c) The director of
labor and training shall exempt from this chapter all employers whose
contact with the designated substances is entirely
limited to copier machine powders or liquids
where the exposure is incidental to the business
operation.
(d) Any employer who
contests the determination of the director may appeal the
determination under the provisions set forth in
sections 28-20-19 and 28-20-20.
SECTION
8. Section 3-10-1 of the General Laws in Chapter 3-10 entitled "Taxation
of
Beverages" is hereby
amended to read as follows:
3-10-1.
Manufacturing tax rates -- Exemption of religious uses. -- (a) There
shall be
assessed and levied by the tax administrator on all
beverages manufactured, rectified, blended, or
reduced for sale in this state a tax of three
dollars ($3.00) three dollars and thirty cents ($3.30) on
every thirty-one (31) gallons, and a tax at a like
rate for any other quantity or fractional part. On
any beverage manufactured, rectified, blended, or
reduced for sale in this state consisting in
whole or in part of wine, whiskey, rum, gin, brandy
spirits, ethyl alcohol, or other strong liquors
(as distinguished from beer or other brewery products)
the tax to be assessed and levied is as
follows:
(1) Still wines
(whether fortified or not), sixty cents ($.60) one dollar and forty
cents
($1.40) per
gallon;
(2) Still wines
(whether fortified or not) made entirely from fruit grown in this state,
thirty cents ($.30) per gallon;
(3) Sparkling wines
(whether fortified or not), seventy five cents ($.75) per gallon;
(4) Whiskey, rum, gin,
brandy spirits, cordials, and other beverages consisting in whole
or in part of alcohol which is the product of
distillation, three dollars and seventy-five cents
($3.75) five
dollars and forty cents ($5.40) per gallon, except that whiskey, rum, gin,
brandy
spirits, cordials, and other beverages consisting in
whole or in part of alcohol which is the product
of distillation but which contains alcohol measuring
thirty (30) proof or less, one dollar and ten
cents ($1.10) per gallon;
(5) Ethyl alcohol to be
used for beverage purposes, seven dollars and fifty cents ($7.50)
per gallon; and
(6) Ethyl alcohol to be
used for nonbeverage purposes, eight cents ($.08) per
gallon.
(b) Sacramental wines
are not subject to any tax if sold directly to a member of the
clergy for use by the purchaser, or his or her congregation
for sacramental or other religious
purposes.
(c) A brewer who brews
beer in this state which is actively and directly owned,
managed, and operated by an authorized legal entity
which has owned, managed, and operated a
brewery in this state for at least twelve (12)
consecutive months, shall receive a tax exemption on
the first one hundred thousand (100,000) barrels of
beer that it produces and distributes in this
state in any calendar year. A barrel of beer is thirty
one (31) gallons.
SECTION
9. 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 Class A
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
10. Section 42-61.2-7 of the General Laws in Chapter 42-61.2 entitled
"Video
Lottery Terminal" is
hereby amended to read as follows:
42-61.2-7.
Division of revenue. [Effective June 30, 2011.] -- (a) Notwithstanding
the
provisions of section 42-61-15, the allocation of net
terminal income derived from video lottery
games is as follows:
(1) For deposit in the
general fund and to the state lottery division fund for
administrative purposes: Net terminal income not
otherwise disbursed in accordance with
subdivisions (a)(2) -- (a)(6) herein;
(i)
Except for the fiscal year ending June 30, 2008, nineteen one hundredths of one
percent (0.19%) up to a maximum of twenty million
dollars ($20,000,000) shall be equally
allocated to the distressed communities as defined in
section 45-13-12 provided that no eligible
community shall receive more than twenty-five percent
(25%) of that community's currently
enacted municipal budget as its share under this
specific subsection. Distributions made under
this specific subsection are supplemental to all other
distributions made under any portion of
general laws section 45-13-12. For the fiscal year
ending June 30, 2008 distributions by
community shall be identical to the distributions made
in the fiscal year ending June 30, 2007 and
shall be made from general appropriations. For the
fiscal year ending June 30, 2009, the total
state distribution shall be the same total amount
distributed in the fiscal year ending June 30,
2008 and shall be made from general appropriations.
For the fiscal year ending June 30, 2010, the
total state distribution shall be the same total
amount distributed in the fiscal year ending June 30,
2009 and shall be made from general appropriations,
provided however that $784,458 of the total
appropriation shall be distributed equally to each qualifying
distressed community. For each of
the fiscal years ending June 30, 2011, June 30, 2012,
and June 30, 2013 seven hundred eighty-
four thousand four hundred fifty-eight dollars
($784,458) of the total appropriation shall be
distributed equally to each qualifying distressed
community.
(ii) Five one
hundredths of one percent (0.05%) up to a maximum of five million dollars
($5,000,000) shall be appropriated to property tax
relief to fully fund the provisions of section 44-
33-2.1. The maximum credit defined in subdivision
44-33-9(2) shall increase to the maximum
amount to the nearest five dollar ($5.00) increment
within the allocation until a maximum credit
of five hundred dollars ($500) is obtained. In no
event shall the exemption in any fiscal year be
less than the prior fiscal year.
(iii) One and
twenty-two one hundredths of one percent (1.22%) to fund section 44-34.1-
1, entitled "Motor Vehicle and Trailer Excise Tax
Elimination Act of 1998", to the maximum
amount to the nearest two hundred fifty dollar ($250)
increment within the allocation. In no event
shall the exemption in any fiscal year be less than
the prior fiscal year.
(iv) Except for the
fiscal year ending June 30, 2008, ten one hundredths of one percent
(0.10%) to a maximum of ten million dollars
($10,000,000) for supplemental distribution to
communities not included in paragraph (a)(1)(i) above distributed proportionately on the basis of
general revenue sharing distributed for that fiscal
year. For the fiscal year ending June 30, 2008
distributions by community shall be identical to the
distributions made in the fiscal year ending
June 30, 2007 and shall be made from general
appropriations. For the fiscal year ending June 30,
2009, no funding shall be disbursed. For the fiscal
year ending June 30, 2010 and thereafter,
funding shall be determined by appropriation.
(2) To the licensed
video lottery retailer:
(a) (i) Prior to the effective date of the NGJA Master Contract,
Newport Jai Ali twenty-
six percent (26%) minus three hundred eighty four
thousand nine hundred ninety-six dollars
($384,996);
(ii) On and after the
effective date of the NGJA Master Contract, to the licensed video
lottery retailer who is a party to the NGJA Master Contract,
all sums due and payable under said
Master Contract minus three hundred eighty four
thousand nine hundred ninety-six dollars
($384,996).
(iii) Effective July
1, 2013, provided that the referendum measure authorized by Section
1 of Chapters 24 and 25 of the Public Laws of 2012 is
approved statewide and in the City of
Newport and provided further that Newport Grand commences and
continues to offer table
games, the rate of net terminal income payable to Newport
Grand, LLC under the Newport Grand
Master Contract shall increase by one and one half
percentage (1.5%) points. Effective
July 1,
2013 the rate of net terminal income payable to
Master Contract shall increase by two and one quarter
percent (2.25%) points. The increase
herein shall sunset and expire on June 30, 2015 and
the rate in effect as of June 30, 2013 shall be
reinstated.
(b) (i) Prior to the effective date of the UTGR Master Contract,
to the present licensed
video lottery retailer at
eight and eighty-five one hundredths percent (28.85%)
minus seven hundred sixty-seven
thousand six hundred eighty-seven dollars ($767,687);
(ii) On and after the
effective date of the UTGR Master Contract, to the licensed video
lottery retailer who is a party to the UTGR Master
Contract, all sums due and payable under said
Master Contract minus seven hundred sixty-seven
thousand six hundred eighty-seven dollars
($767,687).
(3) (i) To the technology providers who are not a party to the
GTECH Master Contract
as set forth and referenced in Public Law 2003,
Chapter 32, seven percent (7%) of the net
terminal income of the provider's terminals; in
addition thereto, technology providers who
provide premium or licensed proprietary content or
those games that have unique characteristics
such as 3D graphics, unique math/game play features or
merchandising elements to video lottery
terminals may receive incremental compensation, either
in the form of a daily fee or as an
increased percentage, if all of the following criteria
are met:
(A) A licensed video
lottery retailer has requested the placement of premium or licensed
proprietary content at its licensed video lottery
facility;
(B) The division of
lottery has determined in its sole discretion that the request is likely
to increase net terminal income or is otherwise
important to preserve or enhance the
competiveness of the licensed video lottery retailer;
(C) After approval of
the request by the division of lottery, the total number of premium
or licensed propriety content video lottery terminals
does not exceed ten percent (10%) of the
total number of video lottery terminals authorized at
the respective licensed video lottery retailer;
and
(D) All incremental
costs are shared between the division and the respective licensed
video lottery retailer based upon their proportionate
allocation of net terminal income. The
division of lottery is hereby authorized to amend
agreements with the licensed video lottery
retailers, or the technology providers, as applicable,
to effect the intent herein.
(ii) To contractors who
are a party to the Master Contract as set forth and referenced in
Public Law 2003, Chapter 32, all sums due and payable
under said Master Contract;
(iii) Notwithstanding
paragraphs (i) and (ii) above, there shall be
subtracted
proportionately from the payments to technology
providers the sum of six hundred twenty-eight
thousand seven hundred thirty-seven dollars
($628,737);
(4) (A) To the city of
income of authorized machines at Newport Grand, except
that:
(i)
Effective November 9, 2009 until June 30, 2013, the allocation shall be one and
two
tenths percent (1.2%) of net terminal income of
authorized machines at Newport Grand for each
week the facility operates video lottery games on a
twenty-four (24) hour basis for all eligible
hours authorized, and
(ii) Effective July 1,
2013, provided that the referendum measure authorized by Section 1
of Chapters 24 and 25 of the Public Laws of 2012 is
approved statewide and in the City of
income of authorized video lottery terminals at
Newport Grand; and
(B) To the town of
terminal income of authorized machines at
(i)
Effective November 9, 2009 until June 30, 2013, the allocation shall be one and
forty-
five hundredths percent (1.45%) of net terminal income
of authorized machines at
each week video lottery games are offered on a
twenty-four (24) hour basis for all eligible hours
authorized, and
(ii) Effective July 1,
2013, provided that the referendum measure authorized by Article
25, Chapter 151, Section 4 of the Public Laws of 2011
is approved statewide and in the Town of
income of authorized video lottery terminals at
(5) To the Narragansett
Indian Tribe, seventeen hundredths of one percent (0.17%) of net
terminal income of authorized machines at
($10,000,000) per year, which shall be paid to the
Narragansett Indian Tribe for the account of a
Tribal Development Fund to be used for the purpose of
encouraging and promoting: home
ownership and improvement, elderly housing, adult
vocational training; health and social
services; childcare; natural resource protection; and
economic development consistent with state
law. Provided, however, such distribution shall
terminate upon the opening of any gaming facility
in which the Narragansett Indians are entitled to any
payments or other incentives; and provided
further, any monies distributed hereunder shall not be
used for, or spent on previously contracted
debts; and
(6) Unclaimed prizes
and credits shall remit to the general fund of the state; and
(7) Payments into the
state's general fund specified in subdivisions (a)(1) and (a)(6) shall
be made on an estimated monthly basis. Payment shall
be made on the tenth day following the
close of the month except for the last month when
payment shall be on the last business day.
(b) Notwithstanding the
above, the amounts payable by the Division to UTGR related to
the Marketing Program shall be paid on a frequency
agreed by the Division, but no less
frequently than annually.
(c) Notwithstanding
anything in this chapter 61.2 of this title 42 to the contrary, the
Director is authorized to fund the Marketing Program
as described above in regard to the First
Amendment to the UTGR Master Contract.
(d) Notwithstanding the
above, the amounts payable by the Division to Newport Grand
related to the Marketing Program shall be paid on a
frequency agreed by the Division, but no less
frequently than annually.
(e) Notwithstanding
anything in this chapter 61.2 of this title 42 to the contrary, the
Director is authorized to fund the Marketing Program
as described above in regard to the First
Amendment to the
(f) Notwithstanding the
provisions of section 42-61-15, the allocation of Net Table Game
Revenue derived from Table Games at
(1) For deposit into
the state lottery fund for administrative purposes and then the
balance remaining into the general fund:
(i)
Sixteen percent (16%) of Net Table Game Revenue, except as provided in
subsection
(f)(1)(ii);
(ii) An additional two
percent (2%) of Net Table Game Revenue generated at Twin
River shall be allocated starting from the
commencement of Table Game activities by such Table
Game Retailer, and ending, with respect to such Table
Game Retailer, on the first date that such
Table Game Retailer's net terminal income for a full
State fiscal year is less than such Table
Game Retailer's net terminal income for the prior
State fiscal year, at which point this additional
allocation to the State shall no longer apply to such
Table Game Retailer.
(2) To UTGR, Net Table
Game Revenue not otherwise disbursed pursuant to above
subsection (f)(1); provided, however, on the first
date that such Table Game Retailer's net
terminal income for a full State fiscal year is less
than such Table Game Retailer's net terminal
income for the prior State fiscal year, as set forth
in subsection (f)(1)(ii) above, one percent (1%)
of this Net Table Game Revenue shall be allocated to
the town of
State fiscal years.
(g) Notwithstanding the
provisions of section 42-61-15, the allocation of Net Table
Game Revenue derived from Table Games at Newport Grand
is as follows:
(1) For deposit into
the state lottery fund for administrative purposes and then the
balance remaining into the general fund: eighteen
percent (18%) of Net Table Game Revenue.
(2) To Newport Grand
LLC, Net Table Game Revenue not otherwise disbursed pursuant
to above subsection (g)(1) provided, however, on the
first date that such Table Game Retailer's
net terminal income for a full State fiscal year is
less than such Table Game Retailer's net
terminal income for the prior State fiscal year, one
percent (1%) of this Net Table Game Revenue
shall be allocated to the city of
SECTION
11. Section 44-23-5 of the General Laws in Chapter 44-23 entitled "Estate
and
Transfer Taxes -
Enforcement and Collection" is hereby amended to read as follows:
44-23-5. Appraisal
of estate. – (a) If any statement filed in accordance with the
provisions of this chapter is considered to be an
erroneous or incomplete statement of the
property, real, tangible personal, intangible
personal, or of any part of the property, of the
decedent, the tax administrator shall give notice to
the executor, administrator, heir-at-law,
beneficiary, or trustee filing the statement, to
appear before the tax administrator for the purpose
of examination of and concerning the statement, and
concerning all matters appertaining to the
estate and the value of the estate of the decedent;
and if the executor, administrator, heir-at-law,
beneficiary, or trustee fails to appear after due
notice, or if after appearance and examination of
the executor, administrator, heir-at-law, beneficiary,
or trustee the tax administrator still considers
the statement to be an erroneous or incomplete
statement, or if the executor, administrator, heir-
at-law, beneficiary, or trustee refuses or neglects to
answer the questions propounded in reference
to the statement, the tax administrator may appraise
the estate. The tax administrator shall give
notice by mail to the executor, administrator,
heir-at-law, beneficiary, or trustee and to all persons
known to have a claim or interest in the estate or
property to be appraised, of the time and place
of the appraisal, and the tax administrator or his or
her authorized agent shall at that time and
place appraise the estate or property at its full and
fair cash value as prescribed in this section; and
for that purpose the tax administrator is authorized
to issue subpoenas and to compel the
attendance of witnesses and to take the evidence of
the witnesses under oath if necessary,
concerning the estate or property and the value of the
estate, and the witnesses shall receive the
same fees as those now paid to witnesses subpoenaed to
attend the superior court. From the
appraisal and other proof relating to the estate or
property, the tax administrator determines the
full and fair cash value of the estate or property
upon which all taxes imposed by chapter 22 of
this title are computed and the amount of taxes to
which it is liable. If no appraisal is made as
provided in this section, the tax administrator may
determine the value of the property upon
which all the taxes are computed and the amount of
taxes to which it is liable.
(b) Notwithstanding
the provisions of subsection 44-23-5(a), all farmland, as such term is
defined in section 44-27-2, included as part of an
estate for purposes of this section and utilized
by the executor, administrator, heir-at-law,
beneficiary or trustee as farmland, shall be appraised
at its use value according to applicable federal and
state law and not at its full and fair cash value.
SECTION
12. Section 8-18-2 of the General Laws in Chapter 8-18 entitled "State and
Municipal Court
Compact" is hereby amended to read as follows:
8-18-2. Universal
summons. -- All state agencies and municipalities which have law
enforcement powers shall be issued and authorized a
form for summons and complaint to be used
for all violations specified in chapters 27, and
41.1 and 41.2 of title 31 and no other summons
shall be substituted except as provided by section
31-12-12. All fines, assessments, fees, and
other financial charge or any other responsibility not
changed by the following shall be deemed
enforceable even when the summons is issued by a
municipality and adjudicated by a municipal
court, or issued by state agencies or a municipality
without a court and adjudicated by the traffic
tribunal. All summonses once issued must be recorded
by the traffic tribunal prior to a hearing,
arraignment, or trial. If the summons is answered by
payment without personal appearance
pursuant to section 31-41.1-2, it shall be recorded by
the traffic tribunal upon return from the
financial institution.
SECTION
13. Sections 31-41.2-4 and 31-41.2-5 of the General Laws in Chapter 31-41.2
entitled "Automated
Traffic Violation Monitoring Systems" are hereby amended to read as
follows:
31-41.2-4.
Procedure -- Notice. -- (a) Except as expressly provided in this
chapter, all
prosecutions based on evidence produced by an
automated traffic violation detection system shall
follow the procedures established in chapter 41.1 of
this title, chapter 8-18 of these general laws,
except the provision providing for payments to the
state in sections 8-18-4 and 8-18-6,
and the
rules promulgated by the chief magistrate of the
traffic tribunal for the hearing of civil traffic
violations. Citations A summons may be
issued by an officer solely based on evidence obtained
by use of an automated traffic violation detection
system. All citations summons issued based on
evidence obtained from an automated traffic violation
detection system shall be issued within
fourteen (14) days of the violation.
(b) Notwithstanding
any rule, regulation, or other provision of the general or public laws
to the contrary, no city or town shall be required to
make payments to the state in implementing
any provision of this chapter until July 1, 2013.
(b)(c) It
shall be sufficient to commence a prosecution based on evidence obtained from
an automated traffic violation detection system that a
copy of the citation summons and
supporting documentation be mailed to the address of
the registered owner kept on file by the
registry of motor vehicles pursuant to section 31-3-34
of these general laws. For purposes of this
section, the date of issuance shall be the date of
mailing.
(c)(d)
The officer issuing the citation summons shall certify under
penalties of perjury
that the evidence obtained from the automated traffic
violation detection system was sufficient to
demonstrate a violation of the motor vehicle code.
Such certification shall be sufficient in all
prosecutions pursuant to this chapter to justify the
entry of a default judgment upon sufficient
proof of actual notice in all cases where the citation
summons is not answered within the time
period permitted.
(d)(e)
The citation summons shall contain all the information
provided for on the
uniform summons as referred to in section 31-41.1-1 of
the general laws and the rules of
procedure promulgated by the chief magistrate of the
traffic tribunal subject to the approval of the
supreme court pursuant to section 8-6-2.
(e)(f) In
addition to the information in the uniform summons, the following
information
shall be attached to the citation summons:
(1) Copies of two (2) or
more photographs, or microphotographs, or other recorded
images taken as proof of the violation; and
(2) A signed statement
by a trained law enforcement officer that, based on inspection of
recorded images, the motor vehicle was being operated in
violation of section 31-13-4 of this
subtitle; and
(3) A statement that
recorded images are evidence of a violation of this chapter; and
(4) A statement that
the person who receives a summons under this chapter may either
pay the civil penalty in accordance with the
provisions of section 31-41.1-3, or elect to stand trial
for the alleged violation.
31-41.2-5.
Hearings. -- Evidence from an automated traffic violation detection
system
shall be considered substantive evidence in the prosecution
of all civil traffic violations. Evidence
from an automated traffic violation detection system
approved by the director of transportation
shall be admitted without further authentication and
such evidence may be deemed sufficient to
sustain a civil traffic violation. In addition to any
other defenses as set forth herein, any and all
defenses cognizable at law shall be available to the
individual who receives the citation summons
commencing a prosecution under this chapter.
SECTION
14. Section 44-62-3 of the General Laws in Chapter 44-62 entitled "Tax
Credits for Contributions
to Scholarship Organizations" is hereby amended to read as follows:
44-62-3.
Application for the tax credit program. -- (a) Prior to the
contribution, a
business entity shall apply in writing to the division
of taxation. The application shall contain
such information and certification as the tax
administrator deems necessary for the proper
administration of this chapter. A business entity
shall be approved if it meets the criteria of this
chapter; the dollar amount of the applied for tax
credit is no greater than one hundred thousand
dollars ($100,000) in any tax year, and the
scholarship organization which is to receive the
contribution has qualified under section 44-62-2.
(b) Approvals for
contributions under this section shall be made available by the division
of taxation on a first-come-first-serve basis. The
total aggregate amount of all tax credits
approved shall not exceed one million dollars
($1,000,000) one million five hundred thousand
dollars ($1,500,000) in a fiscal year.
(c) The division of
taxation shall notify the business entity in writing within thirty (30)
days of the receipt of application of the division's
approval or rejection of the application.
(d) Unless the
contribution is part of a two-year plan, the actual cash contribution by the
business entity to a qualified scholarship
organization must be made no later than one hundred
twenty (120) days following the approval of its
application. If the contribution is part of a two-
year plan, the first year's contribution follows the
general rule and the second year's contribution
must be made in the subsequent calendar year by the
same date.
(e) The contributions
must be those charitable contributions made in cash as set forth in
the Internal Revenue Code.
SECTION
15. Section 44-18-30B. of the General Laws in Chapter 44-18 entitled
"Sales
and Use Taxes - Liability
and Computation" is hereby amended to read as follows:
44-18-30B.
Exemption from sales tax for sales by writers, composers, artists --
Findings. -- (a) The general assembly makes the following findings of facts:
(1) The downtown
area of the city of
areas, and dilapidated and abandoned structures;
(2) As a result, the
downtown area has been designated an economic development zone
in order to stop the deterioration and stimulate
economic activity;
(3) The capitol
center area of the city of
especially with the construction of the Providence
Place Mall;
(4) In order to
promote, revitalize and redevelop the "Old Downtown" area of the city
of
Providence it is necessary to provide tax exemptions to this
area as it has been designated as an
economic development zone;
(5) In order to
promote, revitalize, and redevelop the "Downtown or other industrial or
manufacturing buildings" located in the City of
exemptions to this area as it has been designated as
an economic development zone;
(6) The development
of an active artistic community, including "artists in residence", in
this area would promote economic development,
revitalization, tourism, employment
opportunities, and encourage business development by
providing alternative commercial
enterprises while in
Area;
(7) There is a
separate artistic community in the town of
preserve, promote, and revitalize, and which is
distinct from that in the city of
(8) There is a
separate artistic community in the city of
to promote and revitalize and which is distinct from
that in the cities of
and the town of
(9) There is a
separate artistic community in the city of
preserve, promote, and revitalize and which is
distinct from that in the cities of
Pawtucket,
(10) There are
separate artistic communities in the city of
Tiverton which are important to promote and revitalize
and which are distinct from those in the
cities of
Compton;
(11) There is a
separate artistic community in the town of
promote and revitalize and which is distinct from that
in the cities of
Newport,
(1) The arts and
culture are a significant asset for
revenue through increased tourism and economic
activity, creates jobs and economic
opportunities, revitalizes communities adding to
quality of life and property values, and fosters
creativity, innovation, and entrepreneurship.
(2) Since 1998 the
establishment of arts districts where "one-of-a-kind limited
production" works of art may be sold exempt from
state sales tax has resulted in an increased
presence for the arts in designated cities and towns,
with benefits to those communities and to the
state.
(3) Since the
establishment of arts districts, many communities have sought legislation to
expand the program to their city or town.
(4) There is value in
expanding the arts district program statewide, providing incentives
for the sale and purchase of art. This is a unique
opportunity for
and gain an advantage over other states, by becoming
the first and only state in the country to
declare a statewide sales tax exemption on art. This
will strengthen
arts-friendly destination and "State of the
Arts".
(b) (1) This section
only applies to sales by writers, composers and artists residing in and
conducting a business within the state of a
section of the defined economic
development zone in the cities of
zone in the town of
defined economic zone in the city of
the town of
"limited business" or have been designated
by the city of
those areas of the town of
"village business district,"
"manufacturing district," "business district" or "
district," or in those areas of the town of
"business waterfront" or "village
commercial." For the purposes of
this section, a "work" means
an original and creative work, whether written,
composed or executed for "one-of-a-kind limited"
production and which falls into one of the following
categories:
(i)
A book or other writing;
(ii) A play or the
performance of said play;
(iii) A musical
composition or the performance of said composition;
(iv) A painting,
print, photograph or other like picture;
(v) A sculpture;
(vi) Traditional and
fine crafts;
(vii) The creation of a
film or the acting within the film;.
(viii) The creation of
a dance or the performance of the dance.
(2) For the purposes of
this section, a "work" includes any product generated as a result
of any of the above categories.
(3) For the purposes of
this section, a "work" does not apply to any piece or performance
created or executed for industry oriented,
commercial or related production.
(c) (1) This section
applies to sales by any individual:
(i)
Who is a resident of and has a principal place of business situated in the state
of
section
of the economic development zone designated as the arts and entertainment
district in the downtown area of the city of
economic development zone in the town of
Woonsocket, or the defined economic zone in the city of
a principal place of business situated in those areas
within the city of
Little
or have been designated by the city of
and has a principal place of business situated in
those areas within the town of
zoned "waterfront district," "special
district," "village business district," "manufacturing
district,"
"business district" or "
business situated in those areas within the town of
commercial," "business waterfront" or
"village commercial." For the purposes of this section, the
Providence arts and entertainment district in
Street to the southeast,
Street to the southwest. Said
beginning at the point of intersection of
Atwells Avenue to Service Road 7, then turning southerly onto
Service Road 7 to
Street, then turning westerly onto
south onto Bridgham to
continuing to
west onto
Street, then heading northeast on
Aleppo
Street
to
continuing southeast on
Street until
Street, then heading north on
until
southeast on
Acorn Street, then heading south on
Avenue. The named streets are included in the
the area beginning at the point of intersection of
along the
Blackstone
95, then south along I-95 to Pine Street, then north
on Pine Street to AMTRAK Right of Way,
then northwest along the AMTRAK Right of Way to Dexter
Street, then north on Dexter Street to
the
entertainment district is defined as assessor's plat
56, lots 1 through 24, lot 48, lots 50 through 62,
and lots 71 through 82, and assessors plat 66, lots 22
through 26, and lots 29 through 36 the
Woonsocket arts and entertainment district is defined as the
area beginning at a point of land on
the southwest bank of the
Railroad and proceeding northerly to a point at the
intersection of
and
with
Street,
Blackstone
Street
to its intersection with
along
the riverbank southerly to the bridge at
River via
northeasterly on
include the former courthouse on the southerly side of
Avenue, then turning easterly on
Road, then turning southeasterly on
Davison
Avenue,
then turning northeasterly on
south/west bank of the
riverbank to the point of beginning. The
abovementioned streets are included in the district. The
Warwick arts district is defined as that area known as
the Warwick/Cranston municipal boundary, then south to
the intersection of Route 5 and the
Pawtuxet
municipal boundary in the vicinity of
and the municipal boundary westerly along the
Warwick/Cranston municipal boundary to the
intersection of Route 5 and
district.
(ii) Who is determined
by the tax administrator in consultation with the
council on the arts, after consideration of any evidence he or she deems necessary or
which is
submitted to him or her by the individual, to have
written, composed, or executed, either solely or
jointly, a work or works which would fall into one of
the categories listed in subsection (b)(1).
(2) This section also
applies to sales by any other gallery located in the state of Rhode
Island. arts
and entertainment district described in subsection (c)(1)(i)
as well as any other arts
and entertainment district designated by the general
assembly, as well as to sales by any other
gallery located in those areas within the city of
are zoned "general business,"
"waterfront business," or "limited business" or have been
designated by the city of
gallery located in those areas within the town of
"special district," "village business
district," "manufacturing district," "business
district" or
"
town of Tiverton which are zoned "business
commercial," "business waterfront" or "village
commercial."
(3) The tax
administrator shall not make a determination unless:
(i)
The individual(s) concerned duly make(s) an application to the tax
administrator for
the sales tax exemption which applies to the works
defined in this section; and
(ii) The individual has
complied and continues to comply with any and all requests made
by the tax administrator.
(d) Any individual to
whom this section applies and who makes an application to the tax
administrator is entitled to a sales tax exemption for
the sale of a work or works sold from the
individual's business located in the economic
development zone State of Rhode Island which
would, apart from this section, be subject to the tax
rate imposed by the state of
(e) When an individual
makes a request for the exemption, the tax administrator is
entitled to all books, documents, or other evidence
relating to the publication, production or
creation of the works that may be deemed necessary by
the tax administrator for the purposes of
the exemption. The time period in which to provide
this information is in the sole discretion of
the tax administrator and specified in the notice.
(f) In addition to the
information required in subsection (e), the tax administrator may
require the individual(s) to submit an annual
certified accounting of the numbers of works sold,
the type of work sold, and the date of the sale.
Failure to file this report may, in the sole discretion
of the tax administrator, terminate the individual's
eligibility for the exemption.
(g) Any person storing,
using, or otherwise consuming in this state any work or works
which is deemed to be exempt from the sales tax
pursuant to this section is not liable for the use
tax on the work or works.
(h) Notwithstanding the
provisions of this section, any individual to whom this section
may apply shall comply with all the administration,
collection, and other provisions of chapters
18 and 19 of this title.
(4) The
district program and work with the state tourism
agencies, local chambers of commerce, and
advertising/marketing agencies to promote this
program, and will coordinate its efforts with the
city and town governments. The
from any department, division, board, bureau,
commission, or agency of the state any data,
assistance, and resources, including additional
personnel, that will enable it to properly carry out
this program.
(5) The tax
administrator, in cooperation with the
gather data to assess the overall impact of the
statewide arts district program, and issue an annual
report, including, but not be limited to, the impact
of the tax exemption on employment, tourism,
sales and spending within the arts sector and adjacent
businesses, and any other factors that
describe the impact of the program.
SECTION 16. Section 1 of
this article shall take effect on January 1, 2014, and shall
apply to all assets placed in service on or after
January 1, 2014. Section 2 of this article shall take
effect upon passage and shall apply to tax years
beginning on or after January 1, 2014. Section 4
of this article shall take effect July 1, 2013.
Section 8 of this article shall take effect on July 1,
2013 and shall expire on March 31, 2015. Section 15 of
this article shall take effect on December
1, 2013 and shall expire on March 31, 2015. The
remainder of this article shall take effect upon
passage.