| Chapter 235 |
| 2019 -- S 0134 Enacted 07/15/2019 |
| A N A C T |
| RELATING TO TAXATION - WITHHOLDING OF TAX |
| Introduced By: Senators DiPalma, Pearson, Felag, Seveney, and Cano |
| Date Introduced: January 24, 2019 |
| It is enacted by the General Assembly as follows: |
| SECTION 1. Section 44-30-71.3 of the General Laws in Chapter 44-30 entitled "Personal |
| Income Tax" is hereby amended to read as follows: |
| 44-30-71.3. Sale of real property by nonresidents -- Withholding requirements. |
| (a) In a sale of real property and associated tangible personal property owned by a |
| nonresident, the buyer shall deduct and withhold on the payments an amount equal to six percent |
| (6%) of the total payment to nonresident individuals, estates, partnerships, or trusts, and nine |
| percent (9%) seven percent (7%) of the total payment to nonresident corporations. For purposes |
| of this section, a "nonresident corporation" is a corporation that is neither incorporated in this |
| state nor authorized by the secretary of state or board of bank incorporation to do business in this |
| state. |
| (b) "Total payment" means the net proceeds of the sale actually paid to the nonresident |
| seller, including the fair market value of any property to be transferred to the seller. |
| (c) Every buyer subject to the withholding, deduction, and payment provisions of this |
| section shall be liable for all amounts withheld, or required to be withheld, and the amount |
| required to be withheld under the provisions of this section shall, until remitted, constitute a lien |
| upon the property of the owner. |
| (d) The buyer shall remit all monies deducted and withheld pursuant to subsection (a) of |
| this section to the tax administrator within three (3) banking days of the date of closing on forms |
| prescribed by the tax administrator. Interest provisions of ยง 44-1-7 shall be applicable to this |
| section. |
| (e) Payments upon which monies were deducted and withheld pursuant to subsection (a) |
| of this section shall be deemed to have been paid to the tax administrator on behalf of the person |
| from whom it was withheld and the person shall be credited with having paid that amount for the |
| taxable year beginning in that calendar year. |
| (f) The closing attorney, lending institution, and real estate agent or broker in any |
| transaction governed by the provisions of this section is not subject to the withholding, deduction, |
| or payment provisions of this section. |
| (g) All forms prescribed by the tax administrator which that require recording in the land |
| evidence records shall include the name of the sellers and the street address of the property. |
| (h) Notwithstanding any other provision of this section to the contrary, a lien created by |
| the provisions of this section shall cease to be a lien upon or enforceable against real estate upon |
| the expiration of a period of ten (10) years from and after the date of the sale of real property and |
| associated tangible personal property which that gave rise to the lien. |
| SECTION 2. This act shall take effect upon passage. |
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| LC000591 |
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