Chapter 012 |
2019 -- S 0251 SUBSTITUTE A Enacted 03/29/2019 |
A N A C T |
RELATING TO TAXATION -- SALES AND USE TAX--NON-COLLECTING RETAILERS, REFERRERS, AND RETAIL SALE FACILITATORS ACT |
Introduced By: Senators Conley, Seveney, Murray, Pearson, and DiPalma |
Date Introduced: February 07, 2019 |
It is enacted by the General Assembly as follows: |
SECTION 1. The title of Chapter 44-18.2 of the General Laws entitled "Sales and Use |
Tax - Non-Collecting Retailers, Referrers, and Retail Sale Facilitators Act" is hereby amended to |
read as follows: |
CHAPTER 44-18.2 |
Sales and Use Tax - Non-Collecting Retailers, Referrers, and Retail Sale Facilitators Act |
CHAPTER 44-18.2 |
SALES AND USE TAXES - REMOTE SELLERS, REFERRERS, AND MARKETPLACE |
FACILITATORS ACT |
SECTION 2. Section 44-18.2-2 of the General Laws in Chapter 44-18.2 entitled "Sales |
and Use Tax - Non-Collecting Retailers, Referrers, and Retail Sale Facilitators Act" is hereby |
amended to read as follows: |
44-18.2-2. Definitions. |
For the purposes of this chapter: |
(1) "Division of taxation" means the Rhode Island department of revenue, division of |
taxation. The division may also be referred to in this chapter as the "division of taxation", "tax |
division", or "division." |
(2) "In-state customer" means a person or persons who makes a purchase of tangible |
personal property, prewritten computer software delivered electronically or by load and leave as |
defined in § 44-18-7.1(g)(v), vendor-hosted prewritten computer software, and/or taxable services |
as defined under § 44-18-1 et seq. for use, storage, and/or other consumption in this state. |
(3) "In-state software" means software used by in-state customers on their computers, |
smartphones, and other electronic and/or communication devices, including information or |
software such as cached files, cached software, or "cookies", or other data tracking tools, that are |
stored on property in this state or distributed within this state, for the purpose of purchasing |
tangible personal property, prewritten computer software delivered electronically or by load and |
leave, vendor-hosted prewritten computer software, and/or taxable services. |
(4) "Marketplace" means a physical or electronic place including, but not limited to, a |
store, booth, Internet internet website, catalog, television or radio broadcast, or a dedicated sales |
software application where tangible personal property, prewritten computer software delivered |
electronically or by load and leave, vendor-hosted prewritten computer software, and/or taxable |
services is/are sold or offered for sale for delivery in this state regardless of whether the tangible |
personal property, prewritten computer software delivered electronically or by load and leave, or |
vendor-hosted prewritten computer software have a physical presence in the state. |
(5) "Marketplace facilitator" means any person or persons that contracts or otherwise |
agrees with a marketplace seller to facilitate for consideration, regardless of whether deducted as |
fees from the transaction, the sale of the marketplace seller's products through a physical or |
electronic marketplace operated by the person or persons, and engages: |
(a) Directly or indirectly, through one or more affiliated persons in any of the following: |
(i) Transmitting or otherwise communicating the offer or acceptance between the buyer |
and seller; |
(ii) Owning or operating the infrastructure, electronic or physical, or technology that |
brings buyers and sellers together; |
(iii) Providing a virtual currency that buyers are allowed or required to use to purchase |
products from the seller; or |
(iv) Software development or research and development activities related to any of the |
activities described in (b) of this subsection (5)(b), if such activities are directly related to a |
physical or electronic marketplace operated by the person or an affiliated person; and |
(b) In any of the following activities with respect to the seller's products: |
(i) Payment processing services; |
(ii) Fulfillment or storage services; |
(iii) Listing products for sale; |
(iv) Setting prices; |
(v) Branding sales as those of the marketplace facilitator; |
(vi) Order taking; |
(vii) Advertising or promotion; or |
(viii) Providing customer service or accepting or assisting with returns or exchanges. |
(6) "Marketplace seller" means a person, not a related party to a marketplace facilitator, |
who has an agreement with a marketplace facilitator and makes retail sales of tangible personal |
property, prewritten computer software delivered electronically or by load and leave, vendor- |
hosted prewritten computer software, and/or taxable services through a marketplace owned, |
operated, or controlled by a marketplace facilitator, whether or not such person is required to |
register to collect and remit sales tax. |
(47) "Non-collecting retailer" means any person or persons who meets at least one of the |
following criteria: |
(A) Uses in-state software to make sales at retail of tangible personal property, prewritten |
computer software delivered electronically or by load and leave, and/or taxable services; or |
(B) Sells, leases, or delivers in this state, or participates in any activity in this state in |
connection with the selling, leasing, or delivering in this state, of tangible personal property, |
prewritten computer software delivered electronically or by load and leave, and/or taxable |
services for use, storage, distribution, or consumption within this state. This includes, but shall |
not be limited to, any of the following acts or methods of transacting business: |
(i) Engaging in, either directly or indirectly through a referrer, retail sale facilitator, or |
other third party, direct response marketing targeted at in-state customers. For purposes of this |
subsection, direct response marketing includes, but is not limited to, sending, transmitting, or |
broadcasting via flyers, newsletters, telephone calls, targeted electronic mail, text messages, |
social media messages, targeted mailings; collecting, analyzing and utilizing individual data on |
in-state customers; using information or software, including cached files, cached software, or |
"cookies", or other data tracking tools, that are stored on property in or distributed within this |
state; or taking any other action(s) that use persons, tangible property, intangible property, digital |
files or information, or software in this state in an effort to enhance the probability that the |
person's contacts with a potential in-state customer will result in a sale to that in-state customer; |
(ii) Entering into one or more agreements under which a person or persons who has |
physical presence in this state refers, either directly or indirectly, potential in-state customers of |
tangible personal property, prewritten computer software delivered electronically or by load and |
leave, and/or taxable services to the non-collecting retailer for a fee, commission, or other |
consideration whether by an internet-based link or an internet website, or otherwise. An |
agreement under which a non-collecting retailer purchases advertisements from a person or |
persons in this state to be delivered in this state on television, radio, in print, on the internet or by |
any other medium in this state, shall not be considered an agreement under this subsection (ii), |
unless the advertisement revenue or a portion thereof paid to the person or persons in this state |
consists of a fee, commission, or other consideration that is based in whole or in part upon sales |
of tangible personal property, prewritten computer software delivered electronically or by load |
and leave, and/or taxable services; or |
(iii) Using a retail sale facilitator to sell, lease, or deliver in this state, or participate in any |
activity in this state in connection with the selling, leasing, or delivering in this state, of tangible |
personal property, prewritten computer software delivered electronically or by load and leave, |
and/or taxable services for use, storage, or consumption in this state.; |
(C) Uses a sales process that includes listing, branding, or selling tangible personal |
property, prewritten computer software delivered electronically or by load and leave, and/or |
taxable services for sale, soliciting, processing orders, fulfilling orders, providing customer |
service and/or accepting or assisting with returns or exchanges occurring in this state, regardless |
of whether that part of the process has been subcontracted to an affiliate or third party. The sales |
process for which the in-state customer is charged not more than the basic charge for shipping |
and handling as used in this subsection shall not include shipping via a common carrier or the |
United States mail; |
(D) Offers its tangible personal property, prewritten computer software delivered |
electronically or by load and leave, and/or taxable services for sale through one or more retail sale |
facilitators that has physical presence in this state; |
(E) Is related to a person that has physical presence in this state, and such related person |
with a physical presence in this state: |
(i) Sells tangible personal property, prewritten computer software delivered electronically |
or by load and leave, and/or taxable services that are the same or substantially similar to that sold |
by a non-collecting retailer under a business name that is the same or substantially similar to that |
of the non-collecting retailer; |
(ii) Maintains an office, distribution facility, salesroom, warehouse, storage place, or |
other similar place of business in this state to facilitate the delivery of tangible personal property, |
prewritten computer software delivered electronically or by load and leave, and/or taxable |
services sold by the non-collecting retailer; |
(iii) Uses, with consent or knowledge of the non-collecting retailer, trademarks, service |
marks, or trade names in this state that are the same or substantially similar to those used by the |
non-collecting retailer; |
(iv) Delivers or has delivered (except for delivery by common carrier or United States |
mail for which the in-state customer is charged not more than the basic charge for shipping and |
handling), installs, or assembles tangible personal property in this state, or performs maintenance |
or repair services on tangible personal property in this state, which tangible personal property is |
sold to in-state customers by the non-collecting retailer; |
(v) Facilitates the delivery of tangible personal property purchased from a non-collecting |
retailer but delivered in this state by allowing an in-state customer to pick up the tangible personal |
property at an office distribution facility, salesroom, warehouse, storage place, or other similar |
place of business maintained in this state; or |
(vi) Shares management, business systems, business practices, computer resources, |
communication systems, payroll, personnel, or other such business resources and activities with |
the non-collecting retailer, and/or engages in intercompany transactions with the non-collecting |
retailer, either or both of which relate to the activities that establish or maintain the non-collecting |
retailer's market in this state. |
(F) Any person or persons who meets at least one of the criteria in subsections (4)(7)(A) - |
- (4)(7)(E) above shall be presumed to be a non-collecting retailer. |
(G) The term "non-collecting retailer" will no longer apply to any entity that meets the |
definition of this subsection effective ninety (90) days after the enactment of this amended |
chapter, at which time such entity shall be classified as a "remote seller" as referenced in R.I. |
Gen. Laws § 44-18-15.2. |
(58) "Person" means person as defined in § 44-18-6. |
(69) "Referrer" means every person who: |
(A) Contracts or otherwise agrees with a retailer to list and/or advertise for sale in this |
state tangible personal property, prewritten computer software delivered electronically or by load |
and leave, vendor-hosted prewritten computer software, and/or taxable services in any forum, |
including, but not limited to, a catalog or internet website; |
(B) Receives a fee, commission, and/or other consideration from a retailer for the listing |
and/or advertisement; |
(C) Transfers, via in-state software, internet link, or otherwise, an in-state customer to the |
retailer or the retailer's employee, affiliate, or website to complete a purchase; and |
(D) Does not collect payments from the in-state customer for the transaction. |
(E) A person or persons who engages in the activity set forth in all of the activities set |
forth in subsections (69)(A) -- (69)(D) above shall be presumed to be a referrer. |
(710) "Related" means: |
(A) Having a relationship with the non-collecting retailer within the meaning of the |
internal revenue code of 1986 as amended; or |
(B) Having one or more ownership relationships and a purpose of having the ownership |
relationship is to avoid the application of this chapter. |
(811) A "retail sale" or "sale at retail" means any retail sale or sale at retail as defined in § |
44-18-8. |
(912) "Retail sale facilitator" means any person or persons that facilitates a sale by a |
retailer by engaging in the following types of activities: |
(A) Using in-state software to make sales at retail of tangible personal property, |
prewritten computer software delivered electronically or by load and leave, and/or taxable |
services; or |
(B) Contracting or otherwise agreeing with a retailer to list and/or advertise for sale |
tangible personal property, prewritten computer software delivered electronically or by load and |
leave, and/or taxable services in any forum, including, but not limited to, a catalog or internet |
website; and |
(C) Either directly or indirectly through agreements or arrangements with third parties, |
collecting payments from the in-state customer and transmitting those payments to a retailer. A |
person or persons may be a retail sale facilitator regardless of whether they deduct any fees from |
the transaction. The division may define in regulation circumstances under which a retail sale |
facilitator shall be deemed to facilitate a retail sale. |
(D) A person or persons who engages in the type of activity set forth in subsection (912) |
(A) above or both of the types of activities set forth in subsections (912) (B) and (912) (C) above |
shall be presumed to be a retail sale facilitator. |
(E) The term "retail sale facilitator" will no longer apply to any entity that meets the |
definition of this subsection effective ninety (90) days after the enactment of this amended |
chapter, at which time such entity shall be classified as a "marketplace facilitator" as referenced |
above in R.I. Gen. Laws § 44-18.2-2 subsection (5) of this section. |
(130) A "retailer" means retailer as defined in § 44-18-15. |
(141) "State" means the State of Rhode Island and Providence Plantations. |
(152) "Streamlined agreement" means the Streamlined Sales and Use Tax Agreement as |
referenced in § 44-18.1-1 et seq. |
(16) "Vendor-hosted prewritten computer software" refers to the same term as defined in |
R.I. Gen. Laws § 44-18-7.1(g)(vii) effective October 1, 2018. |
SECTION 3. Section 44-18.2-3 of the General Laws in Chapter 44-18.2 entitled "Sales |
and Use Tax - Non-Collecting Retailers, Referrers, and Retail Sale Facilitators Act" is hereby |
amended to read as follows: |
44-18.2-3. Requirements for non-collecting retailers, referrers, and retail sale |
facilitators. |
(A) Except as otherwise provided below in § 44-18.2-4, beginning on the later of July 15, |
2017, or two (2) weeks after the enactment of this chapter, and for each tax year thereafter prior |
to ninety (90) days after the effective date of the amendment of this chapter, any non-collecting |
retailer, referrer, or retail sale facilitator, as defined in this chapter, that in the immediately |
preceding calendar year either: |
(i) Has gross revenue from the sale of tangible personal property, prewritten computer |
software delivered electronically or by load and leave, and/or has taxable services delivered into |
this state equal to or exceeding one hundred thousand dollars ($100,000); or |
(ii) Has sold tangible personal property, prewritten computer software delivered |
electronically or by load and leave, and/or taxable services for delivery into this state in two |
hundred (200) or more separate transactions shall comply with the requirements in subsections |
(EF), (FG), and (GH) as applicable. |
(B) A non-collecting retailer, as defined in this chapter, shall comply with subsection |
(E)(F) below if it meets the criteria of either subsection (A)(i) or (A)(ii) above. |
(C) A referrer, as defined in this chapter, shall comply with subsection (FG) below if it |
meets the criteria of either subsection (A)(i) or (A)(ii) above. |
(D) A retail sale facilitator, as defined in this chapter, shall comply with subsection (GH) |
below if it meets the criteria of either subsection (A)(i) or (A)(ii) above. |
(E) Any non-collecting retailer, retail sale facilitator and/or referrer that is collecting and |
remitting sales tax into this state prior to the enactment of this amended chapter, date to be |
inserted after enactment, shall be deemed a remote seller and/or marketplace facilitator and/or |
referrer and shall continue to collect and remit sales tax. |
Beginning on ninety (90) days after the enactment of this amended chapter, date to be |
inserted after enactment, any remote seller, marketplace seller, marketplace facilitator, and/or |
referrer, as defined in this chapter, who is not collecting and remitting sales tax shall comply with |
the requirements in subsection (I) if that remote seller, marketplace seller, marketplace facilitator, |
and/or referrer, as defined in this chapter: (i) has Has not been collecting or remitting sales tax in |
this state and, in the immediately preceding calendar year either: |
(i) Has gross revenue from the sale of tangible personal property, prewritten computer |
software delivered electronically or by load and leave, vendor-hosted prewritten computer |
software, and/or has taxable services delivered into this state equal to or exceeding one hundred |
thousand dollars ($100,000); or |
(ii) Has sold tangible personal property, prewritten computer software delivered |
electronically or by load and leave, vendor-hosted prewritten computer software, and/or taxable |
services for delivery into this state in two hundred (200) or more separate transactions. |
(EF) Non-collecting retailer. A non-collecting retailer shall either register in this state for |
a permit to make sales at retail and collect and remit sales and use tax on all taxable sales into the |
state or: |
(1) Post a conspicuous notice on its website that informs in-state customers that sales or |
use tax is due on certain purchases made from the non-collecting retailer and that this state |
requires the in-state customer to file a sales or use tax return; |
(2) At the time of purchase, notify in-state customers that sales or use tax is due on |
taxable purchases made from the non-collecting retailer and that the state of Rhode Island |
requires the in-state customer to file a sales or use tax return; |
(3) Within forty-eight (48) hours of the time of purchase, notify in-state customers in |
writing that sales or use tax is due on taxable purchases made from the non-collecting retailer and |
that this state requires the in-state customer to file a sales or use tax return reflecting said |
purchase; |
(4) On or before January 31 of each year, including January 31, 2018, for purchases made |
in calendar year 2017, send a written notice to all in-state customers who have cumulative annual |
taxable purchases from the non-collecting retailer totaling one hundred dollars ($100) or more for |
the prior calendar year. The notification shall show the name of the non-collecting retailer, the |
total amount paid by the in-state customer to the non-collecting retailer in the previous calendar |
year, and, if available, the dates of purchases, the dollar amount of each purchase, and the |
category or type of the purchase, including, whether the purchase is exempt or not exempt from |
taxation in Rhode Island. The notification shall include such other information as the division |
may require by rule and regulation. The notification shall state that the state of Rhode Island |
requires a sales or use tax return to be filed and sales or use tax to be paid on certain categories or |
types of purchases made by the in-state customer from the non-collecting retailer. The |
notification shall be sent separately to all in-state customers by first-class mail and shall not be |
included with any other shipments or mailings. The notification shall include the words |
"Important Tax Document Enclosed" on the exterior of the mailing; and |
(5) Beginning on February 15, 2018, and not later than each February 15 thereafter, a |
non-collecting retailer that has not registered in this state for a permit to make sales at retail and |
collect and remit sales and use tax on all taxable sales into the state for any portion of the prior |
calendar year, shall file with the division on such form and/or in such format as the division |
prescribes an attestation that the non-collecting retailer has complied with the requirements of |
subsections (EF) (1) -- (EF) (4) herein. |
(FG) Referrer. At such time during any calendar year, or any portion thereof, that a |
referrer receives more than ten thousand dollars ($10,000) from fees, commissions, and/or other |
compensation paid to it by retailers with whom it has a contract or agreement to list and/or |
advertise for sale tangible personal property, prewritten computer software delivered |
electronically or by load and leave, and/or taxable services, said referrer shall within thirty (30) |
days provide written notice to all such retailers that the retailers' sales may be subject to this |
state's sales and use tax. |
(GH) Retail sale facilitator. Beginning January 15, 2018, and each year thereafter, a retail |
sale facilitator shall provide the division of taxation with: |
(i) A list of names and addresses of the retailers for whom during the prior calendar year |
the retail sale facilitator collected Rhode Island sales and use tax; and |
(ii) A list of names and addresses of the retailers who during the prior calendar year used |
the retail sale facilitator to serve in-state customers but for whom the retail sale facilitator did not |
collect Rhode Island sales and use tax. |
(I) Remote sellers, referrers, and marketplace facilitators. A remote seller, referrer, and |
marketplace facilitator shall register in this state for a permit to make sales at retail and collect |
and remit sales and use tax on all taxable sales into the state. |
(i) A marketplace facilitator shall collect sales and use tax on all sales made through the |
marketplace to purchasers in this state whether or not the marketplace seller (1) has Has or is |
required to have a permit to make sales at retail or (2) would Would have been required to collect |
and remit sales and use tax had the sale not been made through the marketplace provider. |
(ii) A marketplace facilitator shall certify to its marketplace sellers that it will collect and |
remit sales and use tax on sales of taxable items made through the marketplace. A marketplace |
seller that accepts a marketplace provider's collection certificate in good faith may exclude sales |
made through the marketplace from the marketplace seller's returns under Chapters chapters 18 |
and 19 of Title title 44 of the Rhode Island General Laws. |
(iii) A marketplace facilitator with respect to a sale of tangible personal property, |
prewritten computer software delivered electronically by load and leave, vendor-hosted |
prewritten software, and/or taxable services it facilitates: |
(A) shall Shall have all the obligations and rights of a retailer under Chapters chapters |
18 and 19 of Title title 44 of the Rhode Island General Laws and under any regulations adopted |
pursuant thereto, including, but not limited to, the duty to obtain a certificate of authority, to |
collect tax, file returns, remit tax, and the right to accept a certificate or other documentation from |
a customer substantiating an exemption or exclusion from tax, the right to receive a refund or |
credit allowed by law; and (B) shall Shall keep such records and information and cooperate with |
the tax administrator to ensure the proper collection and remittance of tax imposed, collected, or |
required to be collected under Chapters chapters 18 and 19 of Title title 44 of the Rhode Island |
General Laws. |
(iv) A marketplace facilitator shall be subject to audit by the tax administrator with |
respect to all retail sales for which it is required to collect and pay the tax imposed under Chapters |
chapters 18 and 19 of Title title 44 of the Rhode Island General Laws. Where the tax |
administrator audits the marketplace facilitator, the tax administrator is prohibited from auditing |
the marketplace seller for the same retail sales unless the marketplace facilitator seeks relief under |
this subsection (iv). |
(v) If the marketplace facilitator demonstrates to the tax administrator's satisfaction that |
the marketplace facilitator has made a reasonable effort to obtain accurate information from the |
marketplace seller about a retail sale and that the failure to collect and pay the correct amount of |
tax imposed under Chapters chapters 18 and 19 of Title title 44 of the Rhode Island General |
Laws was due to incorrect information provided to the marketplace facilitator by the marketplace |
seller, then the marketplace facilitator shall be relieved of liability of the tax for that retail sale. |
This subsection (v) does not apply with regard to a retail sale for which the marketplace facilitator |
is the seller or if the marketplace facilitator and seller are affiliates. Where the marketplace |
facilitator is relieved under this subsection (v), the seller is liable for the tax imposed under |
Chapters chapters 18 and 19 of Title title 44 of the Rhode Island General Laws. |
(vi) A class action may not be brought against a marketplace facilitator on behalf of |
purchasers arising from or in any way related to an overpayment of sales or use tax collected by |
the marketplace facilitator, regardless of whether such action is characterized as a tax refund |
claim. Nothing in this subsection (vi) shall affect a purchaser's right to seek a refund as otherwise |
allowed by law. |
(HJ) Any person or entity that engages in any activity or activities of a non-collecting |
retailer, referrer, and/or retail sale facilitator as defined herein shall be presumed to be a non- |
collecting retailer, referrer, and/or retail sale facilitator as applicable even if referred to by another |
name or designation. Said person or entity shall be subject to the terms and conditions set forth in |
this chapter. |
SECTION 4. Section 44-18.2-4 of the General Laws in Chapter 44-18.2 entitled "Sales |
and Use Tax - Non-Collecting Retailers, Referrers, and Retail Sale Facilitators Act" is hereby |
amended to read as follows: |
44-18.2-4. Exceptions for referrers and retail sale facilitators. |
(A)(i) Notwithstanding the provisions of § 44-18.2-3, no retail sale facilitator shall be |
required to comply with the provisions of § 44-18.2-3(GH), for any sale where the retail sale |
facilitator within ninety (90) days of the date of the sale has been provided either: |
(1) A copy of the retailer's Rhode Island sales tax permit to make sales at retail in this |
state or its resale certificate as applicable; or |
(2) Evidence of a fully completed Rhode Island or Streamlined agreement sales and use |
tax exemption certificate. |
(ii) Notwithstanding the provisions of § 44-18.2-3, no referrer shall be required to comply |
with the provisions of § 44-18.2-3(FG) for any referral where the referrer within ninety (90) days |
of the date of the sale has been provided either: |
(1) A copy of the retailer's Rhode Island sales tax permit to make sales at retail in this |
state or its resale certificate as applicable; or |
(2) Evidence of a fully completed Rhode Island or Streamlined agreement sales and use |
tax exemption certificate. |
(B) Nothing in this section shall be construed to interfere with the ability of a non- |
collecting retailer, referrer, or retail sale facilitator and a retailer to enter into agreements with |
each other; provided, however, the terms of said agreements shall not in any way be inconsistent |
with or contravene the requirements of this chapter. |
(C) The provisions of subsections (A) and (B) herein will not be applicable as of ninety |
(90) days after the effective date of the amendment of this chapter. |
SECTION 5. Section 44-18.2-5 of the General Laws in Chapter 44-18.2 entitled "Sales |
and Use Tax - Non-Collecting Retailers, Referrers, and Retail Sale Facilitators Act" is hereby |
amended to read as follows: |
44-18.2-5. Penalties. |
Prior to ninety (90) days after the effective date of the enactment of the amendment of |
this chapter or date to be inserted upon enactment, Aany non-collecting retailer, referrer, or retail |
sale facilitator that fails to comply with any of the requirements of this chapter shall be subject to |
a penalty of ten dollars ($10.00) for each such failure, but not more less than a total penalty of ten |
thousand dollars ($10,000) per calendar year. As of ninety (90) days after the effective date of the |
enactment of this chapter or date to be inserted after enactment, any remote seller, referrer, or |
marketplace facilitator that fails to comply with any of the requirements of this chapter shall be |
subject to a penalty of ten dollars ($10.00) for each such failure, but not less than a total penalty |
of ten thousand dollars ($10,000) per calendar year. Each instance of failing to comply with the |
requirements of this chapter shall constitute a separate violation for purposes of calculating the |
penalty under this section. This penalty shall be in addition to any other applicable penalties |
under title 44. |
SECTION 6. Section 44-18.2-6 of the General Laws in Chapter 44-18.2 entitled "Sales |
and Use Tax - Non-Collecting Retailers, Referrers, and Retail Sale Facilitators Act" is hereby |
amended to read as follows: |
44-18.2-6. Other obligations. |
(A) Nothing in this section affects the obligation of any in-state customer to remit use tax |
as to any applicable transaction in which the seller, non-collecting retailer, or retail sale |
facilitator, remote seller, marketplace seller, or marketplace facilitator has not collected and |
remitted the sales tax for said transaction. |
(B) Nothing in this chapter shall be construed as relieving any other person or entity |
otherwise required to collect and remit sales and use tax under applicable Rhode Island law from |
continuing to do so. |
(C) In the event that any section of this chapter is later determined to be unlawful, no |
person, persons, or entity shall have a cause of action against the person that collected and |
remitted the sales and use tax pursuant to this chapter. |
SECTION 7. Section 44-18-15.2 of the General Laws in Chapter 44-18 entitled "Sales |
and Use Taxes - Liability and Computation" is hereby amended to read as follows: |
44-18-15.2. "Remote seller" and "remote sale" defined -- Collection of sales and use |
tax by remote seller. |
(a) As used in this section: |
(1) "Remote seller" means a person who makes remote sales in this state. any seller, other |
than a marketplace facilitator or referrer, who does not have a physical presence in this state and |
makes retail sales to purchasers. |
(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. |
(b) 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 § 44-18-18, and in |
accordance with the provisions of this article, chapters 18.1 and 19 of this title, and applicable |
federal law. |
SECTION 8. This act shall take effect upon passage. |
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LC001182/SUB A/2 |
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