2023 -- S 0713
========
LC002533
========
S TATE OF RHODE IS LAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2023
____________
A N A C T
RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND COMMERC E
CORPORATION
Introduced By: Senators Britto, F. Lombardi, Lawson, Ciccone, DiPalma, and Tikoian
Date Introduced: March 22, 2023
Referred To: Senate Finance
(Dept. of Revenue)
It is enacted by the General Assembly as follows:
SECTION 1. Section 42-64-10 of the General Laws in Chapter 42-64 entitled "Rhode 1
Island Commerce Corporation" is hereby amended to read as follows: 2
42-64-10. Findings of the corporation. 3
(a) Except as specifically provided in this chapter, the Rhode Island commerce corporation 4
shall not be empowered to undertake the acquisition, construction, reconstruction, rehabilitation, 5
development, or improvement of a project, nor enter into a contract for any undertaking or for the 6
financing of this undertaking, unless it first: 7
(1) Finds: 8
(i) That the acquisition or construction and operation of the project will prevent, eliminate, 9
or reduce unemployment or underemployment in the state and will generally benefit economic 10
development of the state; 11
(ii) That adequate provision has been made or will be made for the payment of the cost of 12
the acquisition, construction, operation, and maintenance and upkeep of the project; 13
(iii) That, with respect to real property, the plans and specifications assure adequate light, 14
air, sanitation, and fire protection; 15
(iv) That the project is in conformity with the applicable provisions of chapter 23 of title 16
46; and 17
(v) That the project is in conformity with the applicable provisions of the state guide plan; 18
LC002533 - Page 2 of 19
and 1
(2) Prepares and publicly releases an analysis of the impact the proposed project will or 2
may have on the State. The analysis shall be supported by appropriate data and documentation and 3
shall consider, but not be limited to, the following factors: 4
(i) The impact on the industry or industries in which the completed project will be involved; 5
(ii) State fiscal matters, including the state budget (revenues and expenses); 6
(iii) The financial exposure of the taxpayers of the state under the plans for the proposed 7
project and negative foreseeable contingencies that may arise therefrom; 8
(iv) The approximate number of full-time, part-time, temporary, seasonal, and/or 9
permanent jobs projected to be created, construction and non-construction; 10
(v) Identification of geographic sources of the staffing for identified jobs; 11
(vi) The projected duration of the identified construction jobs; 12
(vii) The approximate wage rates for each category of the identified jobs; 13
(viii) The types of fringe benefits to be provided with the identified jobs, including 14
healthcare insurance and any retirement benefits; 15
(ix) The projected fiscal impact on increased personal income taxes to the state of Rhode 16
Island; and 17
(x) The description of any plan or process intended to stimulate hiring from the host 18
community, training of employees or potential employees and outreach to minority job applicants 19
and minority businesses. 20
(b) With respect to the uses described in § 42-64-3(18), (23), (30), (35), and (36) and with 21
respect to projects situated on federal lands, the corporation shall not be required to make the 22
findings specified in subsection (a)(1)(i) of this section. 23
(c) Except for the findings specified in subsections (a)(1)(iv) and (a)(1)(v) of this section, 24
the findings of the corporation made pursuant to this section shall be binding and conclusive for all 25
purposes. Upon adoption by the corporation, any such findings shall be transmitted to the division 26
of taxation, and shall be made available to the public for inspection by any person, and shall be 27
published by the tax administrator on the tax division website. 28
(d) The corporation shall monitor every impact analysis it completes through the duration 29
of any project incentives. Such monitoring shall include annual reports which shall be transmitted 30
to the division of taxation, and shall be available to the public for inspection by any person, and 31
shall be published by the tax administrator on the tax division website. The annual reports on the 32
impact analysis shall include: 33
(1) Actual versus projected impact for all considered factors; and 34
LC002533 - Page 3 of 19
(2) Verification of all commitments made in consideration of state incentives or aid. 1
(e) Upon its preparation and release of the analysis required by subsection (a)(2) of this 2
section, the corporation shall provide copies of that analysis to the chairpersons of the house and 3
senate finance committees, the house and senate fiscal advisors, the department of labor and 4
training and the division of taxation. Any such analysis shall be available to the public for 5
inspection by any person and shall be published by the tax administrator on the tax division website. 6
Annually thereafter, the department of labor and training shall certify to the chairpersons of the 7
house and senate finance committees, the house and senate fiscal advisors, the corporation and the 8
division of taxation that: (i) the actual number of new full-time jobs with benefits created by the 9
project, not including construction jobs, is on target to meet or exceed the estimated number of new 10
jobs identified in the analysis above, and (ii) the actual number of existing full-time jobs with 11
benefits has not declined. This certification shall no longer be required two (2) tax years after the 12
terms and conditions of both the general assembly’s joint resolution of approval required by § 42-13
64-20.1 of this chapter and any agreement between the corporation and the project lessee have been 14
satisfied. For purposes of this section, “full-time jobs with benefits” means jobs that require 15
working a minimum of thirty (30) hours per week within the state, with a median wage that exceeds 16
by five percent (5%) the median annual wage for full-time jobs in Rhode Island and within the 17
taxpayer’s industry, with a benefit package that includes healthcare insurance plus other benefits 18
typical of companies within the project lessee’s industry. The department of labor and training shall 19
also certify annually to the chairpersons of the house and senate finance committees, the house and 20
senate fiscal advisors, and the division of taxation that jobs created by the project are “new jobs” 21
in the state of Rhode Island, meaning that the employees of the project are in addition to, and 22
without a reduction in the number of, those employees of the project lessee currently employed in 23
Rhode Island, are not relocated from another facility of the project lessee in Rhode Island or are 24
employees assumed by the project lessee as the result of a merger or acquisition of a company 25
already located in Rhode Island. The certifications made by the department of labor and training 26
shall be available to the public for inspection by any person and shall be published by the tax 27
administrator on the tax division website. 28
(f) The corporation, with the assistance of the taxpayer, the department of labor and 29
training, the department of human services and the division of taxation shall provide annually an 30
analysis of whether any of the employees of the project lessee has received RIte Care or RIte Share 31
benefits and the impact such benefits or assistance may have on the state budget. Any such analysis 32
shall be available to the public for inspection by any person and shall be published by the tax 33
administrator on the tax division website. Notwithstanding any other provision of law or rule or 34
LC002533 - Page 4 of 19
regulation, the division of taxation, the department of labor and training and the department of 1
human services are authorized to present, review and discuss lessee-specific tax or employment 2
information or data with the Rhode Island commerce corporation (RICC), the chairpersons of the 3
house and senate finance committees, and/or the house and senate fiscal advisors for the purpose 4
of verification and compliance with this tax credit reporting requirement. 5
(g) The corporation and the project lessee shall agree that, if at any time prior to pay back 6
of the amount of the sales tax exemption through new income tax collections over three (3) years, 7
not including construction job income taxes, the project lessee will be unable to continue the 8
project, or otherwise defaults on its obligations to the corporation, the project lessee shall be liable 9
to the state for all the sales tax benefits granted to the project plus interest, as determined in Rhode 10
Island General Law § 44-1-7, calculated from the date the project lessee received the sales tax 11
benefits. 12
(h) Any agreements or contracts entered into by the corporation and the project lessee shall 13
be sent to the division of taxation and be available to the public for inspection by any person and 14
shall be published by the tax administrator on the tax division website. 15
(i) By August 15th of each year the project lessee shall report the source and amount of 16
any bonds, grants, loans, loan guarantees, matching funds or tax credits received from any state 17
governmental entity, state agency or public agency as defined in § 37-2-7 received during the 18
previous state fiscal year. This annual report shall be sent to the division of taxation and be available 19
to the public for inspection by any person and shall be published by the tax administrator on the tax 20
division website. 21
(j) By August 15th of each year the division of taxation shall report the name, address, and 22
amount of sales tax benefit each project lessee received during the previous state fiscal year to the 23
corporation, the chairpersons of the house and senate finance committees, the house and senate 24
fiscal advisors, the department of labor and training and the division of taxation. This report shall 25
be available to the public for inspection by any person and shall be published by the tax 26
administrator on the tax division website. 27
(k) On or before September 1, 2011, and every September 1 thereafter, the project lessee 28
shall file an annual report with the tax administrator. Said report shall contain each full-time 29
equivalent, part-time or seasonal employee’s name, social security number, date of hire, and hourly 30
wage as of the immediately preceding July 1 and such other information deemed necessary by the 31
tax administrator. The report shall be filed on a form and in a manner prescribed by the tax 32
administrator. 33
SECTION 2. Section 42-64.3-6.1 of the General Laws in Chapter 42-64.3 entitled 34
LC002533 - Page 5 of 19
"Distressed Areas Economic Revitalization Act" is hereby amended to read as follows: 1
42-64.3-6.1. Impact analysis and periodic reporting. 2
(a) The council shall not certify any applicant as a qualified business under subsection 42-3
64.3-3(4) of this chapter until it has first prepared and publicly released an analysis of the impact 4
the proposed investment will or may have on the state. The analysis shall be supported by 5
appropriate data and documentation and shall consider, but not be limited to, the following factors: 6
(i) The impact on the industry or industries in which the applicant will be involved; 7
(ii) State fiscal matters, including the state budget (revenues and expenses); 8
(iii) The financial exposure of the taxpayers of the state under the plans for the proposed 9
investment and negative foreseeable contingencies that may arise therefrom; 10
(iv) The approximate number of full-time, part-time, temporary, seasonal and/or permanent 11
jobs projected to be created, construction and non-construction; 12
(v) Identification of geographic sources of the staffing for identified jobs; 13
(vi) The projected duration of the identified construction jobs; 14
(vii) The approximate wage rates for each category of the identified jobs; 15
(viii) The types of fringe benefits to be provided with the identified jobs, including 16
healthcare insurance and any retirement benefits; 17
(ix) The projected fiscal impact on increased personal income taxes to the state of Rhode 18
Island; and 19
(x) The description of any plan or process intended to stimulate hiring from the host 20
community, training of employees or potential employees, and outreach to minority job applicants 21
and minority businesses. 22
(b) The council shall monitor every impact analysis it completes through the duration of 23
any approved tax credit. Such monitoring shall include annual reports made available to the public 24
on the: 25
(1) Actual versus projected impact for all considered factors; and 26
(2) Verification of all commitments made in consideration of state incentives or aid. 27
(c) Upon its preparation and release of the analysis required by subsection (b) of this 28
section, the council shall provide copies of that analysis to the chairpersons of the house and senate 29
finance committees, the house and senate fiscal advisors, the department of labor and training and 30
the division of taxation. Any such analysis shall be available to the public for inspection by any 31
person and shall by published by the tax administrator on the tax division website. Annually 32
thereafter, through and including the second tax year after any taxpayer has applied for and received 33
a tax credit pursuant to this chapter, the department of labor and training shall certify to the 34
LC002533 - Page 6 of 19
chairpersons of the house and senate finance committees, the house and senate fiscal advisors, the 1
corporation and the division of taxation that: (i) the actual number of new full-time jobs with 2
benefits created by the tax credit, not including construction jobs, is on target to meet or exceed the 3
estimated number of new jobs identified in the analysis above; and (ii) the actual number of existing 4
full-time jobs with benefits has not declined. For purposes of this section, “full-time jobs with 5
benefits” means jobs that require working a minimum of thirty (30) hours per week within the state, 6
with a median wage that exceeds by five percent (5%) the median annual wage for full-time jobs 7
in Rhode Island and within the taxpayer’s industry, with a benefit package that includes healthcare 8
insurance plus other benefits typical of companies within the taxpayer’s industry. The department 9
of labor and training shall also certify annually to the house and senate fiscal committee chairs, the 10
house and senate fiscal advisors, and the division of taxation that jobs created by the tax credit are 11
“new jobs” in the state of Rhode Island, meaning that the employees of the project are in addition 12
to, and without a reduction of, those employees of the taxpayer currently employed in Rhode Island, 13
are not relocated from another facility of the taxpayer in Rhode Island or are employees assumed 14
by the taxpayer as the result of a merger or acquisition of a company already located in Rhode 15
Island. The certifications made by the department of labor and training shall be available to the 16
public for inspection by any person and shall be published by the tax administrator on the tax 17
division website. 18
(d) The council, with the assistance of the taxpayer, the department of labor and training, 19
the department of human services and the division of taxation shall provide annually an analysis of 20
whether any of the employees of the taxpayer has received RIte Care or RIte Share benefits and the 21
impact such benefits or assistance may have on the state budget. This analysis shall be available to 22
the public for inspection by any person and shall be published by the tax administrator on the tax 23
division website. Notwithstanding any other provision of law or rule or regulation, the division of 24
taxation, the department of labor and training and the department of human services are authorized 25
to present, review and discuss taxpayer-specific tax or employment information or data with the 26
council, the chairpersons of the house and senate finance committees, and/or the house and senate 27
fiscal advisors for the purpose of verification and compliance with this tax credit reporting 28
requirement. 29
(e) Any agreements or contracts entered into by the council and the taxpayer shall be sent 30
to the division of taxation and be available to the public for inspection by any person and shall be 31
published by the tax administrator on the tax division website. 32
(f) By August 15th of each year the taxpayer shall report the source and amount of any 33
bonds, grants, loans, loan guarantees, matching funds or tax credits received from any state 34
LC002533 - Page 7 of 19
governmental entity, state agency or public agency as defined in § 37-2-7 received during the 1
previous state fiscal year. This annual report shall be sent to the division of taxation and be available 2
to the public for inspection by any person and shall be published by the tax administrator on the tax 3
division website. 4
(g) By August 15th of each year the division of taxation shall report the name, address, and 5
amount of tax credit received for each taxpayer during the previous state fiscal year to the council, 6
the chairpersons of the house and senate finance committees, the house and senate fiscal advisors, 7
the department of labor and training and the division of taxation. This report shall be available to 8
the public for inspection by any person and shall be published by the tax administrator on the tax 9
division website. 10
(h) On or before September 1, 2011, and every September 1 thereafter, the project lessee 11
shall file an annual report with the tax administrator. Said report shall contain each full-time 12
equivalent, part-time or seasonal employee’s name, social security number, date of hire, and hourly 13
wage as of the immediately preceding July 1 and such other information deemed necessary by the 14
tax administrator. The report shall be filed on a form and in a manner prescribed by the tax 15
administrator. 16
SECTION 3. Section 42-64.20-9 of the General Laws in Chapter 42-64.20 entitled 17
"Rebuild Rhode Island Tax Credit" is hereby amended to read as follows: 18
42-64.20-9. Reporting requirements. 19
(a) By August 1st of each year, each applicant receiving credits under this chapter shall 20
report to the commerce corporation and the division of taxation the following information: 21
(1) The number of total full-time employees employed at the development; 22
(2) The total project cost; 23
(3) The total cost of materials or products purchased from Rhode Island businesses; and 24
(4) Such other reasonable information deemed necessary by the secretary of commerce. 25
(b) By September 1, 2016, and each year thereafter, the commerce corporation shall report 26
the name, address, and amount of tax credit for each credit recipient during the previous state fiscal 27
year to the governor, the speaker of the house of representatives, the president of the senate, and 28
the chairpersons of the house and senate finance committees, the house and senate fiscal advisors, 29
and the department of revenue. Such report shall include any determination regarding the potential 30
impact on an approved qualified development project’s ability to stimulate business development; 31
retain and attract new business and industry to the state; create good-paying jobs for its residents; 32
assist with business, commercial, and industrial real estate development; and generate revenues for 33
necessary state and local governmental services. 34
LC002533 - Page 8 of 19
(c) By October 1, 2016, and each year thereafter, the commerce corporation shall report 1
the total number of approved projects, project costs, and associated amount of approved tax credits 2
approved during the prior fiscal year. This report shall be available to the public for inspection by 3
any person and shall be published by the commerce corporation on its website and by the secretary 4
of commerce on the executive office of commerce website. 5
(d) By October 1st of each year the division of taxation shall report the name, address, and 6
amount of tax credit received for each credit recipient during the previous state fiscal year to the 7
governor, the chairpersons of the house and senate finance committees, the house and senate fiscal 8
advisors, and the department of labor and training. This report shall be available to the public for 9
inspection by any person and shall be published by the tax administrator on the tax division website. 10
(e) By November 1st of each year the division of taxation shall report in the aggregate the 11
information required under subsection 42-64.20-9(a). This report shall be available to the public 12
for inspection by any person and shall be published by the tax administrator on the tax division 13
website. 14
SECTION 4. Section 42-64.21-8 of the General Laws in Chapter 42-64.21 entitled "Rhode 15
Island Tax Increment Financing" is hereby amended to read as follows: 16
42-64.21-8. Reporting requirements. 17
(a) By September 1, 2016, and each year thereafter, the commerce corporation shall report 18
the name, address, and incentive amount of each agreement entered into during the previous state 19
fiscal year to the division of taxation. 20
(b) By December 1, 2016, and each year thereafter, the division of taxation commerce 21
corporation shall provide the governor with the sum, if any, to be appropriated to fund the program. 22
The governor shall submit to the general assembly printed copies of a budget including the total of 23
the sums, if any, as part of the governor’s budget required to be appropriated for the program 24
created under this chapter. 25
(c) By January 1, 2017, and each year thereafter, the commerce corporation shall report to 26
the governor, the speaker of the house, the president of the senate, the chairpersons of the house 27
and senate finance committees, and the house and senate fiscal advisors the address and incentive 28
amount of each agreement entered into during the previous state fiscal year as well as any 29
determination regarding the measurable impact of each and every agreement on the retention and 30
expansion of existing jobs, stimulation of the creation of new jobs, attraction of new business and 31
industry to the state, and stimulation of growth in real estate developments and/or businesses that 32
are prepared to make meaningful investment and foster job creation in the state. 33
SECTION 5. Section 42-64.30-10 of the General Laws in Chapter 42-64.30 entitled 34
LC002533 - Page 9 of 19
"Anchor Institution Tax Credit" is hereby amended to read as follows: 1
42-64.30-10. Reports. 2
(a) By September 1, 2016, and each year thereafter, the commerce corporation shall report 3
the name, address, and amount of tax credit approved for each credit recipient during the previous 4
state fiscal year to the governor, the speaker of the house of representatives, the president of the 5
senate, the chairpersons of the house and senate finance committees, the house and senate fiscal 6
advisors, and the department of revenue. Such report shall include any determination regarding the 7
potential impact on an approved qualified relocation’s ability to stimulate business development; 8
retain and attract new business and industry to the state; create good-paying jobs for its residents; 9
assist with business, commercial, and industrial real estate development; and generate revenues for 10
necessary state and local governmental services. 11
(b) By October 1, 2016, and each year thereafter, the commerce corporation shall report 12
for the year previous the total number of agreements and associated amount of approved tax credits. 13
This report shall be available to the public for inspection by any person and shall be published by 14
the commerce corporation on its website and by the secretary of commerce on the executive office 15
of commerce website. 16
(c) By October 1st of each year the division of taxation shall report the name, address, and 17
amount of tax credit received for each credit recipient during the previous state fiscal year to the 18
governor, the chairpersons of the house and senate finance committees, the house and senate fiscal 19
advisors, and the department of labor and training. 20
SECTION 6. Section 44-34.1-2 of the General Laws in Chapter 44-34.1 entitled "Motor 21
Vehicle and Trailer Excise Tax Elimination Act of 1998" is hereby amended to read as follows: 22
44-34.1-2. City, town and fire district reimbursement. 23
(a) In fiscal years 2000 and thereafter, cities, towns, and fire districts shall receive 24
reimbursements, as set forth in this section, from state general revenues equal to the amount of lost 25
tax revenue due to the phase out or reduction of the excise tax. Cities, towns, and fire districts shall 26
receive advance reimbursements through state fiscal year 2002. In the event the tax is phased out, 27
cities, towns, and fire districts shall receive a permanent distribution of sales tax revenue pursuant 28
to § 44-18-18 in an amount equal to any lost revenue resulting from the excise tax elimination. 29
Lost revenues must be determined using a base tax rate fixed at fiscal year 1998 levels for each 30
city, town, and fire district, except that the town of Johnston’s base tax rate must be fixed at a fiscal 31
year 1999 level. Provided, however, for fiscal year 2011 and thereafter, the base tax rate may be 32
less than but not more than the rates described in this subsection (a). 33
(b)(1) The director of administration shall determine the amount of general revenues to be 34
LC002533 - Page 10 of 19
distributed to each city, town, and fire district for the fiscal years 1999 and thereafter so that every 1
city, town, and fire district is held harmless from tax loss resulting from this chapter, assuming that 2
tax rates are indexed to inflation through fiscal year 2003. 3
(2) The director of administration shall index the tax rates for inflation by applying the 4
annual change in the December Consumer Price Index — All Urban Consumers (CPI-U), published 5
by the Bureau of Labor Statistics of the United States Department of Labor, to the indexed tax rate 6
used for the prior fiscal year calculation; provided, that for state reimbursements in fiscal years 7
2004 and thereafter, the indexed tax rate shall not be subject to further CPI-U adjustments. The 8
director shall apply the following principles in determining reimbursements: 9
(i) Exemptions granted by cities, towns, and fire districts in the fiscal year 1998 must be 10
applied to assessed values prior to applying the exemptions in § 44-34.1-1(c)(1). Cities, towns, and 11
fire districts will not be reimbursed for these exemptions. 12
(ii) City, town, and fire districts shall be reimbursed by the state for revenue losses 13
attributable to the exemptions provided for in § 44-34.1-1 and the inflation indexing of tax rates 14
through fiscal 2003. Reimbursement for revenue losses shall be calculated based upon the 15
difference between the maximum taxable value less personal exemptions and the net assessed 16
value. 17
(iii) Inflation reimbursements shall be the difference between: 18
(A) The levy calculated at the tax rate used by each city, town, and fire district for fiscal 19
year 1998 after adjustments for personal exemptions but prior to adjustments for exemptions 20
contained in § 44-34.1-1(c)(1); provided, that for the town of Johnston, the tax rate used for fiscal 21
year 1999 must be used for the calculation; and 22
(B) The levy calculated by applying the appropriate cumulative inflation adjustment 23
through state fiscal 2003 to the tax rate used by each city, town, and fire district for fiscal year 24
1998; provided, that for the town of Johnston the tax rate used for fiscal year 1999 shall be used 25
for the calculation after adjustments for personal exemptions but prior to adjustments for 26
exemptions contained in § 44-34.1-1. 27
(3) For fiscal year 2018 and thereafter, each city, town, and fire district shall tax motor 28
vehicles and trailers pursuant to chapter 34 of title 44 using the same motor vehicle and trailer 29
excise tax calculation methodology that was employed for fiscal year 2017, where motor vehicle 30
and trailer excise tax calculation methodology refers to the application of specific tax practices and 31
the order of operations in the determination of the tax levied on any given motor vehicle and/or 32
trailer. 33
(4) Each city, town, and fire district shall report to the department of revenue, as part of the 34
LC002533 - Page 11 of 19
submission of the certified tax levy pursuant to § 44-5-22, the motor vehicle and trailer excise tax 1
calculation methodology that was employed for fiscal year 2017. For fiscal year 2018 and 2
thereafter, the department of revenue is authorized to confirm that each city, town, or fire district 3
has used the same motor vehicle and trailer excise tax methodology as was used in fiscal year 2017 4
and the department of revenue shall have the final determination as to whether each city, town, or 5
fire district has in fact complied with this requirement. Should the department of revenue determine 6
that a city, town, or fire district has failed to cooperate or comply with the requirement in this 7
section, the city, town, or fire district’s reimbursement for the items noted in subsections (c)(13)(i) 8
through (c)(13)(iv) of this section shall be withheld until such time as the department of revenue 9
deems the city, town, or fire district to be in compliance. 10
(5) For purposes of reimbursement for the items noted in subsections (c)(13)(i) through 11
(c)(13)(iv) of this section, the FY 2018 baseline from which the reimbursement amount shall be 12
calculated is defined as the motor vehicle and trailer excise tax levy that would be generated by 13
applying the fiscal year 2017 motor vehicle and trailer excise tax calculation methodology to the 14
assessed value of motor vehicles and trailers as of fiscal year 2018. The amount of reimbursement 15
that each city, town, or fire district receives shall be the difference between the FY 2018 baseline 16
and the certified motor vehicle and trailer excise tax levy as submitted by each city, town, and fire 17
district as confirmed by the department of revenue. The department of revenue shall determine the 18
reimbursement amount for each city, town, and fire district. 19
(6) For fiscal year 2020 and thereafter, the department of revenue shall assess the feasibility 20
of standardizing the motor vehicle and trailer excise tax calculation methodology across all cities, 21
towns, and fire departments. Based on this assessment, the department of revenue may make 22
recommendations for changes to the motor vehicle and trailer excise tax calculation methodology. 23
Beginning on January 1, 2021, the director of the department of revenue shall file an annual 24
report for the consideration of the general assembly with the president of the senate, speaker of the 25
house, chairperson of the senate committee on finance and chairperson of the house committee on 26
finance, containing recommendations and findings as to the feasibility of the motor vehicle excise 27
tax phase-out in each year until the phase-out is complete. 28
(c)(1) Funds shall be distributed to the cities, towns, and fire districts as follows: 29
(i) On October 20, 1998, and each October 20 thereafter through October 20, 2001, twenty-30
five percent (25%) of the amount calculated by the director of administration to be the difference 31
for the upcoming fiscal year. 32
(ii) On February 20, 1999, and each February 20 thereafter through February 20, 2002, 33
twenty-five percent (25%) of the amount calculated by the director of administration to be the 34
LC002533 - Page 12 of 19
difference for the upcoming fiscal year. 1
(iii) On June 20, 1999, and each June 20 thereafter through June 20, 2002, fifty percent 2
(50%) of the amount calculated by the director of administration to be the difference for the 3
upcoming fiscal year. 4
(iv) On August 1, 2002, and each August 1 thereafter, twenty-five percent (25%) of the 5
amount calculated by the director of administration to be the difference for the current fiscal year. 6
(v) On November 1, 2002, and each November 1 thereafter, twenty-five percent (25%) of 7
the amount calculated by the director of administration to be the difference for the current fiscal 8
year. 9
(vi) On February 1, 2003, and each February 1 thereafter, twenty-five percent (25%) of the 10
amount calculated by the director of administration to be the difference for the current fiscal year. 11
(vii) On May 1, 2003, and each May 1 thereafter, except May 1, 2010, twenty-five percent 12
(25%) of the amount calculated by the director of administration to be the difference for the current 13
fiscal year. 14
(viii) On June 15, 2010, twenty-five percent (25%) of the amount calculated by the director 15
of administration to be the difference for the current fiscal year. 16
Provided, however, the February and May payments, and June payment in 2010, shall be 17
subject to submission of final certified and reconciled motor vehicle levy information. 18
(2) Each city, town, or fire district shall submit final certified and reconciled motor vehicle 19
levy information by August 30 of each year. Any adjustment to the estimated amounts paid in the 20
previous fiscal year shall be included or deducted from the payment due November 1. 21
(3) On any of the payment dates specified in paragraphs (1)(i) through (vii) of this 22
subsection, the director is authorized to deduct previously made over-payments or add 23
supplemental payments as may be required to bring the reimbursements into full compliance with 24
the requirements of this chapter. 25
(4) For the city of East Providence, the payment schedule is twenty-five percent (25%) on 26
February 20, 1999, and each February 20 thereafter through February 20, 2002, twenty-five percent 27
(25%) on June 20, 1999, and each June 20 thereafter through June 20, 2002, which includes final 28
reconciliation of the previous year’s payment, and fifty percent (50%) on October 20, 1999, and 29
each October 20 thereafter through October 20, 2002. For local fiscal years 2003 and thereafter, 30
the payment schedule is twenty-five percent (25%) on each November 1, twenty-five percent (25%) 31
on each February 1, twenty-five percent (25%) on each May 1, which includes final reconciliation 32
of the previous year’s payment, and twenty-five percent (25%) on each August 1; provided, the 33
May and August payments shall be subject to submission of final certified and reconciled motor 34
LC002533 - Page 13 of 19
vehicle levy information. 1
(5) When the tax is phased out, funds distributed to the cities, towns, and fire districts for 2
the following fiscal year shall be calculated as the funds distributed in the fiscal year of the phase-3
out. Twenty-five percent (25%) of the amounts calculated shall be distributed to the cities, towns, 4
and fire districts on August 1, in the fiscal year of the phase-out, twenty-five percent (25%) on the 5
following November 1, twenty-five percent (25%) on the following February 1, and twenty-five 6
percent (25%) on the following May 1. The funds shall be distributed to each city, town, and fire 7
district in the same proportion as distributed in the fiscal year of the phase-out. 8
(6) When the tax is phased out to August 1, of the following fiscal year the director of 9
revenue shall calculate to the nearest thousandth of one cent ($0.00001) the number of cents of 10
sales tax received for the fiscal year ending June 30, of the year following the phase-out equal to 11
the amount of funds distributed to the cities, towns, and fire districts under this chapter during the 12
fiscal year following the phase-out and the percent of the total funds distributed in the fiscal year 13
following the phase-out received by each city, town, and fire district, calculated to the nearest one-14
hundredth of one percent (0.01%). The director of the department of revenue shall transmit those 15
calculations to the governor, the speaker of the house, the president of the senate, the chairperson 16
of the house finance committee, the chairperson of the senate finance committee, the house fiscal 17
advisor, and the senate fiscal advisor. The number of cents, applied to the sales taxes received for 18
the prior fiscal year, shall be the basis for determining the amount of sales tax to be distributed to 19
the cities, towns, and fire districts under this chapter for the second fiscal year following the phase-20
out and each year thereafter. The cities, towns, and fire districts shall receive that amount of sales 21
tax in the proportions calculated by the director of revenue as that received in the fiscal year 22
following the phase-out. 23
(7) When the tax is phased out, twenty-five percent (25%) of the funds shall be distributed 24
to the cities, towns, and fire districts on August 1 of the following fiscal year, and every August 1 25
thereafter; twenty-five percent (25%) shall be distributed on the following November 1, and every 26
November 1 thereafter; twenty-five percent (25%) shall be distributed on the following February 27
1, and every February 1 thereafter; and twenty-five percent (25%) shall be distributed on the 28
following May 1, and every May 1 thereafter. 29
(8) For the city of East Providence, in the event the tax is phased out, twenty-five percent 30
(25%) shall be distributed on November 1 of the following fiscal year, and every November 1 31
thereafter, twenty-five percent (25%) shall be distributed on the following February 1, and every 32
February 1 thereafter; twenty-five percent (25%) shall be distributed on the following May 1, and 33
every May 1 thereafter; and twenty-five percent (25%) of the funds shall be distributed on the 34
LC002533 - Page 14 of 19
following August 1, and every August 1 thereafter. 1
(9) As provided for in § 44-34-6, the authority of fire districts to tax motor vehicles is 2
eliminated effective with the year 2000 tax roll and the state reimbursement for fire districts shall 3
be based on the provisions of § 44-34-6. All references to fire districts in this chapter do not apply 4
to the year 2001 tax roll and thereafter. 5
(10) For reimbursements payable in the year ending June 30, 2008, and thereafter, the 6
director of administration shall discount the calculated value of the exemption to ninety-eight 7
percent (98%) in order to establish a collection rate that is comparable to the collection rate 8
achieved by municipalities in the levy of the motor vehicle excise tax. 9
(11) For reimbursements payable in the year ending June 30, 2010, the director of 10
administration shall reimburse cities and towns eighty-eight percent (88%) of the reimbursements 11
payable pursuant to subsection (c)(10) above. 12
(12) For fiscal year 2011 through to June 30, 2017, the state shall reimburse cities and 13
towns, for the exemption pursuant to subsection (c)(10) above, ratably reduced to the appropriation. 14
(13) For fiscal year 2018 and thereafter, each city, town, and fire district shall receive a 15
reimbursement equal to the amount received in fiscal year 2017 plus an amount equal to the 16
reduction from the FY 2018 baseline, as defined in subsection (b)(5) of this section, resulting from 17
changes in: 18
(i) The assessment percentage set forth in § 44-34-11(c)(1)(iii); 19
(ii) The excise tax rate set forth in § 44-34.1-1(c)(5); 20
(iii) Exemptions set forth in § 44-34.1-1(c)(1); and 21
(iv) Exemptions for vehicles more than fifteen (15) years old as set forth in § 44-34-2. 22
(14) In the event any city, town, or fire district sent out or sends out tax bills for fiscal year 23
2018, which do not conform with the requirements of this act, the city, town, or fire district shall 24
ensure that the tax bills for fiscal year 2018 are adjusted or an abatement is issued to conform to 25
the requirements of this act. 26
SECTION 7. Section 44-48.2-5 of the General Laws in Chapter 44-48.2 entitled "Rhode 27
Island Economic Development Tax Incentives Evaluation Act of 2013" is hereby amended to read 28
as follows: 29
44-48.2-5. Economic development tax incentive evaluations — Analysis. 30
(a) The additional analysis as required by § 44-48.2-4 shall include, but not be limited to: 31
(1) A baseline assessment of the tax incentive, including, if applicable, the number of 32
aggregate jobs associated with the taxpayers receiving such tax incentive and the aggregate annual 33
revenue that such taxpayers generate for the state through the direct taxes applied to them and 34
LC002533 - Page 15 of 19
through taxes applied to their employees; 1
(2) The statutory and programmatic goals and intent of the tax incentive, if said goals and 2
intentions are included in the incentive’s enabling statute or legislation; 3
(3) The number of taxpayers granted the tax incentive during the previous twelve-month 4
(12) period; 5
(4) The value of the tax incentive granted, and ultimately claimed, listed by the North 6
American Industrial Classification System (NAICS) Code associated with the taxpayers receiving 7
such benefit, if such NAICS Code is available; 8
(5) An assessment and five-year (5) projection of the potential impact on the state’s revenue 9
stream from carry forwards allowed under such tax incentive; 10
(6) An estimate of the economic impact of the tax incentive including, but not limited to: 11
(i) A cost-benefit comparison of the revenue foregone by allowing the tax incentive 12
compared to tax revenue generated by the taxpayer receiving the credit, including direct taxes 13
applied to them and taxes applied to their employees; 14
(ii) An estimate of the number of jobs that were the direct result of the incentive; and 15
(iii) A statement by the chief executive officer of the commerce corporation as to whether, 16
in his or her judgment, the statutory and programmatic goals of the tax benefit are being met, with 17
obstacles to such goals identified, if possible; 18
(7) The estimated cost to the state to administer the tax incentive if such information is 19
available; 20
(8) An estimate of the extent to which benefits of the tax incentive remained in state or 21
flowed outside the state, if such information is available; 22
(9) In the case of economic development tax incentives where measuring the economic 23
impact is significantly limited due to data constraints, whether any changes in statute would 24
facilitate data collection in a way that would allow for better analysis; 25
(10) Whether the effectiveness of the tax incentive could be determined more definitively 26
if the general assembly were to clarify or modify the tax incentive’s goals and intended purpose; 27
(11) A recommendation as to whether the tax incentive should be continued, modified, or 28
terminated; the basis for such recommendation; and the expected impact of such recommendation 29
on the state’s economy; 30
(12) The methodology and assumptions used in carrying out the assessments, projections 31
and analyses required pursuant to subdivisions (1) through (8) of this section. 32
(b) All departments, offices, boards, and agencies of the state shall cooperate with the chief 33
of the office of revenue analysis and shall provide to the office of revenue analysis any records, 34
LC002533 - Page 16 of 19
information (documentary and otherwise), data, and data analysis as may be necessary to complete 1
the report required pursuant to this section. 2
SECTION 8. Section 44-48.3-13 of the General Laws in Chapter 44-48.3 entitled "Rhode 3
Island New Qualified Jobs Incentive Act 2015" is hereby amended to read as follows: 4
44-48.3-13. Reporting requirements. 5
(a) By August 1st of each year, each applicant approved for credits under this chapter shall 6
report to the commerce corporation and the division of taxation the following information: 7
(1) The number of total jobs created; 8
(2) The applicable north American industry classification survey annual system code of 9
each job created; 10
(3) The annual salary of each job created; 11
(4) The address of each new employee; 12
(b) By September 1, 2016 and each year thereafter, the commerce corporation shall report 13
the name, address, and amount of tax credit approved for each credit recipient during the previous 14
state fiscal year to the governor, the speaker of the house of representatives, the president of the 15
senate, the chairpersons of the house and senate finance committees, the house and senate fiscal 16
advisors, and the department of revenue. 17
(c) By October 1, 2016 and each year thereafter, the commerce corporation shall report for 18
the year (1) the total number of businesses awarded credits in the previous fiscal year and (2) the 19
name and address of each credit recipient. This report shall be available to the public for inspection 20
by any person and shall be published by the chief executive of the commerce corporation on the 21
commerce corporation and executive office of commerce websites. 22
(d) By October 1st of each year the division of taxation shall report the name, address, and 23
amount of tax credit received for each credit recipient during the previous state fiscal year to the 24
governor, the chairpersons of the house and senate finance committees, the house and senate fiscal 25
advisors, and the department of labor and training. This report shall be available to the public for 26
inspection by any person and shall be published by the tax administrator on the tax division website. 27
(e) By November 1st of each year the division of taxation shall report in the aggregate the 28
information required under subsection 44-48.3-13(a). This report shall be available to the public 29
for inspection by any person and shall be published by the tax administrator on the tax division 30
website. 31
SECTION 9. Section 42-142-6 of the General Laws in Chapter 42-142 entitled 32
"Department of Revenue" is hereby repealed. 33
42-142-6. Annual unified economic development report. 34
LC002533 - Page 17 of 19
(a) The director of the department of revenue shall, no later than January 15th of each state 1
fiscal year, compile and publish, in printed and electronic form, including on the internet, an annual 2
unified economic development report that shall provide the following comprehensive information 3
regarding the tax credits or other tax benefits conferred pursuant to §§ 42-64-10, 44-63-3, 42-64.5-4
5, 42-64.3-1, and 44-31.2-6.1 during the preceding fiscal year: 5
(1) The name of each recipient of any such tax credit or other tax benefit; the dollar amount 6
of each such tax credit or other tax benefit; and summaries of the number of full-time and part-time 7
jobs created or retained; an overview of benefits offered, and the degree to which job creation and 8
retention, wage, and benefit goals and requirements of recipient and related corporations, if any, 9
have been met. The report shall include aggregate dollar amounts of each category of tax credit or 10
other tax benefit; to the extent possible, the amounts of tax credits and other tax benefits by 11
geographical area; the number of recipients within each category of tax credit or retained; overview 12
of benefits offered; and the degree to which job creation and retention, wage and benefit rate goals 13
and requirements have been met within each category of tax credit or other tax benefit; 14
(2) The cost to the state and the approving agency for each tax credit or other tax benefits 15
conferred pursuant to §§ 42-64-10, 44-63-3, 42-64.5-5, 42-64.3-1, and 44-31.2-6.1 during the 16
preceding fiscal year; 17
(3) To the extent possible, the amounts of tax credits and other tax benefits by geographical 18
area; 19
(4) The extent to which any employees of and recipients of any such tax credits or other 20
tax benefits has received RIte Care or RIte Share benefits or assistance; and 21
(5) To the extent the data exists, a cost-benefit analysis prepared by the office of revenue 22
analysis based upon the collected data under §§ 42-64-10, 44-63-3, 42-64.5-5, 42-64-3.1, and 44-23
31.2-6.1, and required for the preparation of the unified economic development report. The cost-24
benefit analysis may include, but shall not be limited to, the cost to the state for the revenue 25
reductions; cost to administer the credit; projected revenues gained from the credit; and other 26
metrics that can be measured along with a baseline assessment of the original intent of the 27
legislation. The office of revenue analysis shall also indicate the purpose of the credit to the extent 28
that it is provided in the enabling legislation, or note the absence of such information, and any 29
measureable goals established by the granting authority of the credit. Where possible, the analysis 30
shall cover a five-year (5) period projecting the cost and benefits over this period. The office of 31
revenue analysis may utilize outside services or sources for development of the methodology and 32
modeling techniques. The unified economic development report shall include the cost-benefit 33
analysis starting January 15, 2014. The office of revenue analysis shall work in conjunction with 34
LC002533 - Page 18 of 19
Rhode Island commerce corporation as established by chapter 64 of this title. 1
(b) After the initial report, the division of taxation will perform reviews of each recipient 2
of this tax credit or other tax benefits to ensure the accuracy of the employee data submitted. The 3
division of taxation will include a summary of the reviews performed, along with any adjustments, 4
modifications, and/or allowable recapture of tax credit amounts and data included on prior year 5
reports. 6
SECTION 10. This act shall take effect upon passage. 7
========
LC002533
========
LC002533 - Page 19 of 19
EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND COMMERC E
CORPORATION
***
This act would streamline tax incentive reporting by eliminating certain division of taxation 1
reporting requirements and using alternative methods of reporting such as the tax division website. 2
This act would take effect upon passage. 3
========
LC002533
========