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Rhode Island Senate Bill S0713

Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0713 Compare Versions

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99 S TATE OF RHODE IS LAND
1010 IN GENERAL ASSEMBLY
1111 JANUARY SESSION, A.D. 2023
1212 ____________
1313
1414 A N A C T
1515 RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND COMMERC E
1616 CORPORATION
1717 Introduced By: Senators Britto, F. Lombardi, Lawson, Ciccone, DiPalma, and Tikoian
1818 Date Introduced: March 22, 2023
1919 Referred To: Senate Finance
2020 (Dept. of Revenue)
2121
2222 It is enacted by the General Assembly as follows:
2323 SECTION 1. Section 42-64-10 of the General Laws in Chapter 42-64 entitled "Rhode 1
2424 Island Commerce Corporation" is hereby amended to read as follows: 2
2525 42-64-10. Findings of the corporation. 3
2626 (a) Except as specifically provided in this chapter, the Rhode Island commerce corporation 4
2727 shall not be empowered to undertake the acquisition, construction, reconstruction, rehabilitation, 5
2828 development, or improvement of a project, nor enter into a contract for any undertaking or for the 6
2929 financing of this undertaking, unless it first: 7
3030 (1) Finds: 8
3131 (i) That the acquisition or construction and operation of the project will prevent, eliminate, 9
3232 or reduce unemployment or underemployment in the state and will generally benefit economic 10
3333 development of the state; 11
3434 (ii) That adequate provision has been made or will be made for the payment of the cost of 12
3535 the acquisition, construction, operation, and maintenance and upkeep of the project; 13
3636 (iii) That, with respect to real property, the plans and specifications assure adequate light, 14
3737 air, sanitation, and fire protection; 15
3838 (iv) That the project is in conformity with the applicable provisions of chapter 23 of title 16
3939 46; and 17
4040 (v) That the project is in conformity with the applicable provisions of the state guide plan; 18
4141
4242
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4444 and 1
4545 (2) Prepares and publicly releases an analysis of the impact the proposed project will or 2
4646 may have on the State. The analysis shall be supported by appropriate data and documentation and 3
4747 shall consider, but not be limited to, the following factors: 4
4848 (i) The impact on the industry or industries in which the completed project will be involved; 5
4949 (ii) State fiscal matters, including the state budget (revenues and expenses); 6
5050 (iii) The financial exposure of the taxpayers of the state under the plans for the proposed 7
5151 project and negative foreseeable contingencies that may arise therefrom; 8
5252 (iv) The approximate number of full-time, part-time, temporary, seasonal, and/or 9
5353 permanent jobs projected to be created, construction and non-construction; 10
5454 (v) Identification of geographic sources of the staffing for identified jobs; 11
5555 (vi) The projected duration of the identified construction jobs; 12
5656 (vii) The approximate wage rates for each category of the identified jobs; 13
5757 (viii) The types of fringe benefits to be provided with the identified jobs, including 14
5858 healthcare insurance and any retirement benefits; 15
5959 (ix) The projected fiscal impact on increased personal income taxes to the state of Rhode 16
6060 Island; and 17
6161 (x) The description of any plan or process intended to stimulate hiring from the host 18
6262 community, training of employees or potential employees and outreach to minority job applicants 19
6363 and minority businesses. 20
6464 (b) With respect to the uses described in § 42-64-3(18), (23), (30), (35), and (36) and with 21
6565 respect to projects situated on federal lands, the corporation shall not be required to make the 22
6666 findings specified in subsection (a)(1)(i) of this section. 23
6767 (c) Except for the findings specified in subsections (a)(1)(iv) and (a)(1)(v) of this section, 24
6868 the findings of the corporation made pursuant to this section shall be binding and conclusive for all 25
6969 purposes. Upon adoption by the corporation, any such findings shall be transmitted to the division 26
7070 of taxation, and shall be made available to the public for inspection by any person, and shall be 27
7171 published by the tax administrator on the tax division website. 28
7272 (d) The corporation shall monitor every impact analysis it completes through the duration 29
7373 of any project incentives. Such monitoring shall include annual reports which shall be transmitted 30
7474 to the division of taxation, and shall be available to the public for inspection by any person, and 31
7575 shall be published by the tax administrator on the tax division website. The annual reports on the 32
7676 impact analysis shall include: 33
7777 (1) Actual versus projected impact for all considered factors; and 34
7878
7979
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8181 (2) Verification of all commitments made in consideration of state incentives or aid. 1
8282 (e) Upon its preparation and release of the analysis required by subsection (a)(2) of this 2
8383 section, the corporation shall provide copies of that analysis to the chairpersons of the house and 3
8484 senate finance committees, the house and senate fiscal advisors, the department of labor and 4
8585 training and the division of taxation. Any such analysis shall be available to the public for 5
8686 inspection by any person and shall be published by the tax administrator on the tax division website. 6
8787 Annually thereafter, the department of labor and training shall certify to the chairpersons of the 7
8888 house and senate finance committees, the house and senate fiscal advisors, the corporation and the 8
8989 division of taxation that: (i) the actual number of new full-time jobs with benefits created by the 9
9090 project, not including construction jobs, is on target to meet or exceed the estimated number of new 10
9191 jobs identified in the analysis above, and (ii) the actual number of existing full-time jobs with 11
9292 benefits has not declined. This certification shall no longer be required two (2) tax years after the 12
9393 terms and conditions of both the general assembly’s joint resolution of approval required by § 42-13
9494 64-20.1 of this chapter and any agreement between the corporation and the project lessee have been 14
9595 satisfied. For purposes of this section, “full-time jobs with benefits” means jobs that require 15
9696 working a minimum of thirty (30) hours per week within the state, with a median wage that exceeds 16
9797 by five percent (5%) the median annual wage for full-time jobs in Rhode Island and within the 17
9898 taxpayer’s industry, with a benefit package that includes healthcare insurance plus other benefits 18
9999 typical of companies within the project lessee’s industry. The department of labor and training shall 19
100100 also certify annually to the chairpersons of the house and senate finance committees, the house and 20
101101 senate fiscal advisors, and the division of taxation that jobs created by the project are “new jobs” 21
102102 in the state of Rhode Island, meaning that the employees of the project are in addition to, and 22
103103 without a reduction in the number of, those employees of the project lessee currently employed in 23
104104 Rhode Island, are not relocated from another facility of the project lessee in Rhode Island or are 24
105105 employees assumed by the project lessee as the result of a merger or acquisition of a company 25
106106 already located in Rhode Island. The certifications made by the department of labor and training 26
107107 shall be available to the public for inspection by any person and shall be published by the tax 27
108108 administrator on the tax division website. 28
109109 (f) The corporation, with the assistance of the taxpayer, the department of labor and 29
110110 training, the department of human services and the division of taxation shall provide annually an 30
111111 analysis of whether any of the employees of the project lessee has received RIte Care or RIte Share 31
112112 benefits and the impact such benefits or assistance may have on the state budget. Any such analysis 32
113113 shall be available to the public for inspection by any person and shall be published by the tax 33
114114 administrator on the tax division website. Notwithstanding any other provision of law or rule or 34
115115
116116
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118118 regulation, the division of taxation, the department of labor and training and the department of 1
119119 human services are authorized to present, review and discuss lessee-specific tax or employment 2
120120 information or data with the Rhode Island commerce corporation (RICC), the chairpersons of the 3
121121 house and senate finance committees, and/or the house and senate fiscal advisors for the purpose 4
122122 of verification and compliance with this tax credit reporting requirement. 5
123123 (g) The corporation and the project lessee shall agree that, if at any time prior to pay back 6
124124 of the amount of the sales tax exemption through new income tax collections over three (3) years, 7
125125 not including construction job income taxes, the project lessee will be unable to continue the 8
126126 project, or otherwise defaults on its obligations to the corporation, the project lessee shall be liable 9
127127 to the state for all the sales tax benefits granted to the project plus interest, as determined in Rhode 10
128128 Island General Law § 44-1-7, calculated from the date the project lessee received the sales tax 11
129129 benefits. 12
130130 (h) Any agreements or contracts entered into by the corporation and the project lessee shall 13
131131 be sent to the division of taxation and be available to the public for inspection by any person and 14
132132 shall be published by the tax administrator on the tax division website. 15
133133 (i) By August 15th of each year the project lessee shall report the source and amount of 16
134134 any bonds, grants, loans, loan guarantees, matching funds or tax credits received from any state 17
135135 governmental entity, state agency or public agency as defined in § 37-2-7 received during the 18
136136 previous state fiscal year. This annual report shall be sent to the division of taxation and be available 19
137137 to the public for inspection by any person and shall be published by the tax administrator on the tax 20
138138 division website. 21
139139 (j) By August 15th of each year the division of taxation shall report the name, address, and 22
140140 amount of sales tax benefit each project lessee received during the previous state fiscal year to the 23
141141 corporation, the chairpersons of the house and senate finance committees, the house and senate 24
142142 fiscal advisors, the department of labor and training and the division of taxation. This report shall 25
143143 be available to the public for inspection by any person and shall be published by the tax 26
144144 administrator on the tax division website. 27
145145 (k) On or before September 1, 2011, and every September 1 thereafter, the project lessee 28
146146 shall file an annual report with the tax administrator. Said report shall contain each full-time 29
147147 equivalent, part-time or seasonal employee’s name, social security number, date of hire, and hourly 30
148148 wage as of the immediately preceding July 1 and such other information deemed necessary by the 31
149149 tax administrator. The report shall be filed on a form and in a manner prescribed by the tax 32
150150 administrator. 33
151151 SECTION 2. Section 42-64.3-6.1 of the General Laws in Chapter 42-64.3 entitled 34
152152
153153
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155155 "Distressed Areas Economic Revitalization Act" is hereby amended to read as follows: 1
156156 42-64.3-6.1. Impact analysis and periodic reporting. 2
157157 (a) The council shall not certify any applicant as a qualified business under subsection 42-3
158158 64.3-3(4) of this chapter until it has first prepared and publicly released an analysis of the impact 4
159159 the proposed investment will or may have on the state. The analysis shall be supported by 5
160160 appropriate data and documentation and shall consider, but not be limited to, the following factors: 6
161161 (i) The impact on the industry or industries in which the applicant will be involved; 7
162162 (ii) State fiscal matters, including the state budget (revenues and expenses); 8
163163 (iii) The financial exposure of the taxpayers of the state under the plans for the proposed 9
164164 investment and negative foreseeable contingencies that may arise therefrom; 10
165165 (iv) The approximate number of full-time, part-time, temporary, seasonal and/or permanent 11
166166 jobs projected to be created, construction and non-construction; 12
167167 (v) Identification of geographic sources of the staffing for identified jobs; 13
168168 (vi) The projected duration of the identified construction jobs; 14
169169 (vii) The approximate wage rates for each category of the identified jobs; 15
170170 (viii) The types of fringe benefits to be provided with the identified jobs, including 16
171171 healthcare insurance and any retirement benefits; 17
172172 (ix) The projected fiscal impact on increased personal income taxes to the state of Rhode 18
173173 Island; and 19
174174 (x) The description of any plan or process intended to stimulate hiring from the host 20
175175 community, training of employees or potential employees, and outreach to minority job applicants 21
176176 and minority businesses. 22
177177 (b) The council shall monitor every impact analysis it completes through the duration of 23
178178 any approved tax credit. Such monitoring shall include annual reports made available to the public 24
179179 on the: 25
180180 (1) Actual versus projected impact for all considered factors; and 26
181181 (2) Verification of all commitments made in consideration of state incentives or aid. 27
182182 (c) Upon its preparation and release of the analysis required by subsection (b) of this 28
183183 section, the council shall provide copies of that analysis to the chairpersons of the house and senate 29
184184 finance committees, the house and senate fiscal advisors, the department of labor and training and 30
185185 the division of taxation. Any such analysis shall be available to the public for inspection by any 31
186186 person and shall by published by the tax administrator on the tax division website. Annually 32
187187 thereafter, through and including the second tax year after any taxpayer has applied for and received 33
188188 a tax credit pursuant to this chapter, the department of labor and training shall certify to the 34
189189
190190
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192192 chairpersons of the house and senate finance committees, the house and senate fiscal advisors, the 1
193193 corporation and the division of taxation that: (i) the actual number of new full-time jobs with 2
194194 benefits created by the tax credit, not including construction jobs, is on target to meet or exceed the 3
195195 estimated number of new jobs identified in the analysis above; and (ii) the actual number of existing 4
196196 full-time jobs with benefits has not declined. For purposes of this section, “full-time jobs with 5
197197 benefits” means jobs that require working a minimum of thirty (30) hours per week within the state, 6
198198 with a median wage that exceeds by five percent (5%) the median annual wage for full-time jobs 7
199199 in Rhode Island and within the taxpayer’s industry, with a benefit package that includes healthcare 8
200200 insurance plus other benefits typical of companies within the taxpayer’s industry. The department 9
201201 of labor and training shall also certify annually to the house and senate fiscal committee chairs, the 10
202202 house and senate fiscal advisors, and the division of taxation that jobs created by the tax credit are 11
203203 “new jobs” in the state of Rhode Island, meaning that the employees of the project are in addition 12
204204 to, and without a reduction of, those employees of the taxpayer currently employed in Rhode Island, 13
205205 are not relocated from another facility of the taxpayer in Rhode Island or are employees assumed 14
206206 by the taxpayer as the result of a merger or acquisition of a company already located in Rhode 15
207207 Island. The certifications made by the department of labor and training shall be available to the 16
208208 public for inspection by any person and shall be published by the tax administrator on the tax 17
209209 division website. 18
210210 (d) The council, with the assistance of the taxpayer, the department of labor and training, 19
211211 the department of human services and the division of taxation shall provide annually an analysis of 20
212212 whether any of the employees of the taxpayer has received RIte Care or RIte Share benefits and the 21
213213 impact such benefits or assistance may have on the state budget. This analysis shall be available to 22
214214 the public for inspection by any person and shall be published by the tax administrator on the tax 23
215215 division website. Notwithstanding any other provision of law or rule or regulation, the division of 24
216216 taxation, the department of labor and training and the department of human services are authorized 25
217217 to present, review and discuss taxpayer-specific tax or employment information or data with the 26
218218 council, the chairpersons of the house and senate finance committees, and/or the house and senate 27
219219 fiscal advisors for the purpose of verification and compliance with this tax credit reporting 28
220220 requirement. 29
221221 (e) Any agreements or contracts entered into by the council and the taxpayer shall be sent 30
222222 to the division of taxation and be available to the public for inspection by any person and shall be 31
223223 published by the tax administrator on the tax division website. 32
224224 (f) By August 15th of each year the taxpayer shall report the source and amount of any 33
225225 bonds, grants, loans, loan guarantees, matching funds or tax credits received from any state 34
226226
227227
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229229 governmental entity, state agency or public agency as defined in § 37-2-7 received during the 1
230230 previous state fiscal year. This annual report shall be sent to the division of taxation and be available 2
231231 to the public for inspection by any person and shall be published by the tax administrator on the tax 3
232232 division website. 4
233233 (g) By August 15th of each year the division of taxation shall report the name, address, and 5
234234 amount of tax credit received for each taxpayer during the previous state fiscal year to the council, 6
235235 the chairpersons of the house and senate finance committees, the house and senate fiscal advisors, 7
236236 the department of labor and training and the division of taxation. This report shall be available to 8
237237 the public for inspection by any person and shall be published by the tax administrator on the tax 9
238238 division website. 10
239239 (h) On or before September 1, 2011, and every September 1 thereafter, the project lessee 11
240240 shall file an annual report with the tax administrator. Said report shall contain each full-time 12
241241 equivalent, part-time or seasonal employee’s name, social security number, date of hire, and hourly 13
242242 wage as of the immediately preceding July 1 and such other information deemed necessary by the 14
243243 tax administrator. The report shall be filed on a form and in a manner prescribed by the tax 15
244244 administrator. 16
245245 SECTION 3. Section 42-64.20-9 of the General Laws in Chapter 42-64.20 entitled 17
246246 "Rebuild Rhode Island Tax Credit" is hereby amended to read as follows: 18
247247 42-64.20-9. Reporting requirements. 19
248248 (a) By August 1st of each year, each applicant receiving credits under this chapter shall 20
249249 report to the commerce corporation and the division of taxation the following information: 21
250250 (1) The number of total full-time employees employed at the development; 22
251251 (2) The total project cost; 23
252252 (3) The total cost of materials or products purchased from Rhode Island businesses; and 24
253253 (4) Such other reasonable information deemed necessary by the secretary of commerce. 25
254254 (b) By September 1, 2016, and each year thereafter, the commerce corporation shall report 26
255255 the name, address, and amount of tax credit for each credit recipient during the previous state fiscal 27
256256 year to the governor, the speaker of the house of representatives, the president of the senate, and 28
257257 the chairpersons of the house and senate finance committees, the house and senate fiscal advisors, 29
258258 and the department of revenue. Such report shall include any determination regarding the potential 30
259259 impact on an approved qualified development project’s ability to stimulate business development; 31
260260 retain and attract new business and industry to the state; create good-paying jobs for its residents; 32
261261 assist with business, commercial, and industrial real estate development; and generate revenues for 33
262262 necessary state and local governmental services. 34
263263
264264
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266266 (c) By October 1, 2016, and each year thereafter, the commerce corporation shall report 1
267267 the total number of approved projects, project costs, and associated amount of approved tax credits 2
268268 approved during the prior fiscal year. This report shall be available to the public for inspection by 3
269269 any person and shall be published by the commerce corporation on its website and by the secretary 4
270270 of commerce on the executive office of commerce website. 5
271271 (d) By October 1st of each year the division of taxation shall report the name, address, and 6
272272 amount of tax credit received for each credit recipient during the previous state fiscal year to the 7
273273 governor, the chairpersons of the house and senate finance committees, the house and senate fiscal 8
274274 advisors, and the department of labor and training. This report shall be available to the public for 9
275275 inspection by any person and shall be published by the tax administrator on the tax division website. 10
276276 (e) By November 1st of each year the division of taxation shall report in the aggregate the 11
277277 information required under subsection 42-64.20-9(a). This report shall be available to the public 12
278278 for inspection by any person and shall be published by the tax administrator on the tax division 13
279279 website. 14
280280 SECTION 4. Section 42-64.21-8 of the General Laws in Chapter 42-64.21 entitled "Rhode 15
281281 Island Tax Increment Financing" is hereby amended to read as follows: 16
282282 42-64.21-8. Reporting requirements. 17
283283 (a) By September 1, 2016, and each year thereafter, the commerce corporation shall report 18
284284 the name, address, and incentive amount of each agreement entered into during the previous state 19
285285 fiscal year to the division of taxation. 20
286286 (b) By December 1, 2016, and each year thereafter, the division of taxation commerce 21
287287 corporation shall provide the governor with the sum, if any, to be appropriated to fund the program. 22
288288 The governor shall submit to the general assembly printed copies of a budget including the total of 23
289289 the sums, if any, as part of the governor’s budget required to be appropriated for the program 24
290290 created under this chapter. 25
291291 (c) By January 1, 2017, and each year thereafter, the commerce corporation shall report to 26
292292 the governor, the speaker of the house, the president of the senate, the chairpersons of the house 27
293293 and senate finance committees, and the house and senate fiscal advisors the address and incentive 28
294294 amount of each agreement entered into during the previous state fiscal year as well as any 29
295295 determination regarding the measurable impact of each and every agreement on the retention and 30
296296 expansion of existing jobs, stimulation of the creation of new jobs, attraction of new business and 31
297297 industry to the state, and stimulation of growth in real estate developments and/or businesses that 32
298298 are prepared to make meaningful investment and foster job creation in the state. 33
299299 SECTION 5. Section 42-64.30-10 of the General Laws in Chapter 42-64.30 entitled 34
300300
301301
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303303 "Anchor Institution Tax Credit" is hereby amended to read as follows: 1
304304 42-64.30-10. Reports. 2
305305 (a) By September 1, 2016, and each year thereafter, the commerce corporation shall report 3
306306 the name, address, and amount of tax credit approved for each credit recipient during the previous 4
307307 state fiscal year to the governor, the speaker of the house of representatives, the president of the 5
308308 senate, the chairpersons of the house and senate finance committees, the house and senate fiscal 6
309309 advisors, and the department of revenue. Such report shall include any determination regarding the 7
310310 potential impact on an approved qualified relocation’s ability to stimulate business development; 8
311311 retain and attract new business and industry to the state; create good-paying jobs for its residents; 9
312312 assist with business, commercial, and industrial real estate development; and generate revenues for 10
313313 necessary state and local governmental services. 11
314314 (b) By October 1, 2016, and each year thereafter, the commerce corporation shall report 12
315315 for the year previous the total number of agreements and associated amount of approved tax credits. 13
316316 This report shall be available to the public for inspection by any person and shall be published by 14
317317 the commerce corporation on its website and by the secretary of commerce on the executive office 15
318318 of commerce website. 16
319319 (c) By October 1st of each year the division of taxation shall report the name, address, and 17
320320 amount of tax credit received for each credit recipient during the previous state fiscal year to the 18
321321 governor, the chairpersons of the house and senate finance committees, the house and senate fiscal 19
322322 advisors, and the department of labor and training. 20
323323 SECTION 6. Section 44-34.1-2 of the General Laws in Chapter 44-34.1 entitled "Motor 21
324324 Vehicle and Trailer Excise Tax Elimination Act of 1998" is hereby amended to read as follows: 22
325325 44-34.1-2. City, town and fire district reimbursement. 23
326326 (a) In fiscal years 2000 and thereafter, cities, towns, and fire districts shall receive 24
327327 reimbursements, as set forth in this section, from state general revenues equal to the amount of lost 25
328328 tax revenue due to the phase out or reduction of the excise tax. Cities, towns, and fire districts shall 26
329329 receive advance reimbursements through state fiscal year 2002. In the event the tax is phased out, 27
330330 cities, towns, and fire districts shall receive a permanent distribution of sales tax revenue pursuant 28
331331 to § 44-18-18 in an amount equal to any lost revenue resulting from the excise tax elimination. 29
332332 Lost revenues must be determined using a base tax rate fixed at fiscal year 1998 levels for each 30
333333 city, town, and fire district, except that the town of Johnston’s base tax rate must be fixed at a fiscal 31
334334 year 1999 level. Provided, however, for fiscal year 2011 and thereafter, the base tax rate may be 32
335335 less than but not more than the rates described in this subsection (a). 33
336336 (b)(1) The director of administration shall determine the amount of general revenues to be 34
337337
338338
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340340 distributed to each city, town, and fire district for the fiscal years 1999 and thereafter so that every 1
341341 city, town, and fire district is held harmless from tax loss resulting from this chapter, assuming that 2
342342 tax rates are indexed to inflation through fiscal year 2003. 3
343343 (2) The director of administration shall index the tax rates for inflation by applying the 4
344344 annual change in the December Consumer Price Index — All Urban Consumers (CPI-U), published 5
345345 by the Bureau of Labor Statistics of the United States Department of Labor, to the indexed tax rate 6
346346 used for the prior fiscal year calculation; provided, that for state reimbursements in fiscal years 7
347347 2004 and thereafter, the indexed tax rate shall not be subject to further CPI-U adjustments. The 8
348348 director shall apply the following principles in determining reimbursements: 9
349349 (i) Exemptions granted by cities, towns, and fire districts in the fiscal year 1998 must be 10
350350 applied to assessed values prior to applying the exemptions in § 44-34.1-1(c)(1). Cities, towns, and 11
351351 fire districts will not be reimbursed for these exemptions. 12
352352 (ii) City, town, and fire districts shall be reimbursed by the state for revenue losses 13
353353 attributable to the exemptions provided for in § 44-34.1-1 and the inflation indexing of tax rates 14
354354 through fiscal 2003. Reimbursement for revenue losses shall be calculated based upon the 15
355355 difference between the maximum taxable value less personal exemptions and the net assessed 16
356356 value. 17
357357 (iii) Inflation reimbursements shall be the difference between: 18
358358 (A) The levy calculated at the tax rate used by each city, town, and fire district for fiscal 19
359359 year 1998 after adjustments for personal exemptions but prior to adjustments for exemptions 20
360360 contained in § 44-34.1-1(c)(1); provided, that for the town of Johnston, the tax rate used for fiscal 21
361361 year 1999 must be used for the calculation; and 22
362362 (B) The levy calculated by applying the appropriate cumulative inflation adjustment 23
363363 through state fiscal 2003 to the tax rate used by each city, town, and fire district for fiscal year 24
364364 1998; provided, that for the town of Johnston the tax rate used for fiscal year 1999 shall be used 25
365365 for the calculation after adjustments for personal exemptions but prior to adjustments for 26
366366 exemptions contained in § 44-34.1-1. 27
367367 (3) For fiscal year 2018 and thereafter, each city, town, and fire district shall tax motor 28
368368 vehicles and trailers pursuant to chapter 34 of title 44 using the same motor vehicle and trailer 29
369369 excise tax calculation methodology that was employed for fiscal year 2017, where motor vehicle 30
370370 and trailer excise tax calculation methodology refers to the application of specific tax practices and 31
371371 the order of operations in the determination of the tax levied on any given motor vehicle and/or 32
372372 trailer. 33
373373 (4) Each city, town, and fire district shall report to the department of revenue, as part of the 34
374374
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377377 submission of the certified tax levy pursuant to § 44-5-22, the motor vehicle and trailer excise tax 1
378378 calculation methodology that was employed for fiscal year 2017. For fiscal year 2018 and 2
379379 thereafter, the department of revenue is authorized to confirm that each city, town, or fire district 3
380380 has used the same motor vehicle and trailer excise tax methodology as was used in fiscal year 2017 4
381381 and the department of revenue shall have the final determination as to whether each city, town, or 5
382382 fire district has in fact complied with this requirement. Should the department of revenue determine 6
383383 that a city, town, or fire district has failed to cooperate or comply with the requirement in this 7
384384 section, the city, town, or fire district’s reimbursement for the items noted in subsections (c)(13)(i) 8
385385 through (c)(13)(iv) of this section shall be withheld until such time as the department of revenue 9
386386 deems the city, town, or fire district to be in compliance. 10
387387 (5) For purposes of reimbursement for the items noted in subsections (c)(13)(i) through 11
388388 (c)(13)(iv) of this section, the FY 2018 baseline from which the reimbursement amount shall be 12
389389 calculated is defined as the motor vehicle and trailer excise tax levy that would be generated by 13
390390 applying the fiscal year 2017 motor vehicle and trailer excise tax calculation methodology to the 14
391391 assessed value of motor vehicles and trailers as of fiscal year 2018. The amount of reimbursement 15
392392 that each city, town, or fire district receives shall be the difference between the FY 2018 baseline 16
393393 and the certified motor vehicle and trailer excise tax levy as submitted by each city, town, and fire 17
394394 district as confirmed by the department of revenue. The department of revenue shall determine the 18
395395 reimbursement amount for each city, town, and fire district. 19
396396 (6) For fiscal year 2020 and thereafter, the department of revenue shall assess the feasibility 20
397397 of standardizing the motor vehicle and trailer excise tax calculation methodology across all cities, 21
398398 towns, and fire departments. Based on this assessment, the department of revenue may make 22
399399 recommendations for changes to the motor vehicle and trailer excise tax calculation methodology. 23
400400 Beginning on January 1, 2021, the director of the department of revenue shall file an annual 24
401401 report for the consideration of the general assembly with the president of the senate, speaker of the 25
402402 house, chairperson of the senate committee on finance and chairperson of the house committee on 26
403403 finance, containing recommendations and findings as to the feasibility of the motor vehicle excise 27
404404 tax phase-out in each year until the phase-out is complete. 28
405405 (c)(1) Funds shall be distributed to the cities, towns, and fire districts as follows: 29
406406 (i) On October 20, 1998, and each October 20 thereafter through October 20, 2001, twenty-30
407407 five percent (25%) of the amount calculated by the director of administration to be the difference 31
408408 for the upcoming fiscal year. 32
409409 (ii) On February 20, 1999, and each February 20 thereafter through February 20, 2002, 33
410410 twenty-five percent (25%) of the amount calculated by the director of administration to be the 34
411411
412412
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414414 difference for the upcoming fiscal year. 1
415415 (iii) On June 20, 1999, and each June 20 thereafter through June 20, 2002, fifty percent 2
416416 (50%) of the amount calculated by the director of administration to be the difference for the 3
417417 upcoming fiscal year. 4
418418 (iv) On August 1, 2002, and each August 1 thereafter, twenty-five percent (25%) of the 5
419419 amount calculated by the director of administration to be the difference for the current fiscal year. 6
420420 (v) On November 1, 2002, and each November 1 thereafter, twenty-five percent (25%) of 7
421421 the amount calculated by the director of administration to be the difference for the current fiscal 8
422422 year. 9
423423 (vi) On February 1, 2003, and each February 1 thereafter, twenty-five percent (25%) of the 10
424424 amount calculated by the director of administration to be the difference for the current fiscal year. 11
425425 (vii) On May 1, 2003, and each May 1 thereafter, except May 1, 2010, twenty-five percent 12
426426 (25%) of the amount calculated by the director of administration to be the difference for the current 13
427427 fiscal year. 14
428428 (viii) On June 15, 2010, twenty-five percent (25%) of the amount calculated by the director 15
429429 of administration to be the difference for the current fiscal year. 16
430430 Provided, however, the February and May payments, and June payment in 2010, shall be 17
431431 subject to submission of final certified and reconciled motor vehicle levy information. 18
432432 (2) Each city, town, or fire district shall submit final certified and reconciled motor vehicle 19
433433 levy information by August 30 of each year. Any adjustment to the estimated amounts paid in the 20
434434 previous fiscal year shall be included or deducted from the payment due November 1. 21
435435 (3) On any of the payment dates specified in paragraphs (1)(i) through (vii) of this 22
436436 subsection, the director is authorized to deduct previously made over-payments or add 23
437437 supplemental payments as may be required to bring the reimbursements into full compliance with 24
438438 the requirements of this chapter. 25
439439 (4) For the city of East Providence, the payment schedule is twenty-five percent (25%) on 26
440440 February 20, 1999, and each February 20 thereafter through February 20, 2002, twenty-five percent 27
441441 (25%) on June 20, 1999, and each June 20 thereafter through June 20, 2002, which includes final 28
442442 reconciliation of the previous year’s payment, and fifty percent (50%) on October 20, 1999, and 29
443443 each October 20 thereafter through October 20, 2002. For local fiscal years 2003 and thereafter, 30
444444 the payment schedule is twenty-five percent (25%) on each November 1, twenty-five percent (25%) 31
445445 on each February 1, twenty-five percent (25%) on each May 1, which includes final reconciliation 32
446446 of the previous year’s payment, and twenty-five percent (25%) on each August 1; provided, the 33
447447 May and August payments shall be subject to submission of final certified and reconciled motor 34
448448
449449
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451451 vehicle levy information. 1
452452 (5) When the tax is phased out, funds distributed to the cities, towns, and fire districts for 2
453453 the following fiscal year shall be calculated as the funds distributed in the fiscal year of the phase-3
454454 out. Twenty-five percent (25%) of the amounts calculated shall be distributed to the cities, towns, 4
455455 and fire districts on August 1, in the fiscal year of the phase-out, twenty-five percent (25%) on the 5
456456 following November 1, twenty-five percent (25%) on the following February 1, and twenty-five 6
457457 percent (25%) on the following May 1. The funds shall be distributed to each city, town, and fire 7
458458 district in the same proportion as distributed in the fiscal year of the phase-out. 8
459459 (6) When the tax is phased out to August 1, of the following fiscal year the director of 9
460460 revenue shall calculate to the nearest thousandth of one cent ($0.00001) the number of cents of 10
461461 sales tax received for the fiscal year ending June 30, of the year following the phase-out equal to 11
462462 the amount of funds distributed to the cities, towns, and fire districts under this chapter during the 12
463463 fiscal year following the phase-out and the percent of the total funds distributed in the fiscal year 13
464464 following the phase-out received by each city, town, and fire district, calculated to the nearest one-14
465465 hundredth of one percent (0.01%). The director of the department of revenue shall transmit those 15
466466 calculations to the governor, the speaker of the house, the president of the senate, the chairperson 16
467467 of the house finance committee, the chairperson of the senate finance committee, the house fiscal 17
468468 advisor, and the senate fiscal advisor. The number of cents, applied to the sales taxes received for 18
469469 the prior fiscal year, shall be the basis for determining the amount of sales tax to be distributed to 19
470470 the cities, towns, and fire districts under this chapter for the second fiscal year following the phase-20
471471 out and each year thereafter. The cities, towns, and fire districts shall receive that amount of sales 21
472472 tax in the proportions calculated by the director of revenue as that received in the fiscal year 22
473473 following the phase-out. 23
474474 (7) When the tax is phased out, twenty-five percent (25%) of the funds shall be distributed 24
475475 to the cities, towns, and fire districts on August 1 of the following fiscal year, and every August 1 25
476476 thereafter; twenty-five percent (25%) shall be distributed on the following November 1, and every 26
477477 November 1 thereafter; twenty-five percent (25%) shall be distributed on the following February 27
478478 1, and every February 1 thereafter; and twenty-five percent (25%) shall be distributed on the 28
479479 following May 1, and every May 1 thereafter. 29
480480 (8) For the city of East Providence, in the event the tax is phased out, twenty-five percent 30
481481 (25%) shall be distributed on November 1 of the following fiscal year, and every November 1 31
482482 thereafter, twenty-five percent (25%) shall be distributed on the following February 1, and every 32
483483 February 1 thereafter; twenty-five percent (25%) shall be distributed on the following May 1, and 33
484484 every May 1 thereafter; and twenty-five percent (25%) of the funds shall be distributed on the 34
485485
486486
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488488 following August 1, and every August 1 thereafter. 1
489489 (9) As provided for in § 44-34-6, the authority of fire districts to tax motor vehicles is 2
490490 eliminated effective with the year 2000 tax roll and the state reimbursement for fire districts shall 3
491491 be based on the provisions of § 44-34-6. All references to fire districts in this chapter do not apply 4
492492 to the year 2001 tax roll and thereafter. 5
493493 (10) For reimbursements payable in the year ending June 30, 2008, and thereafter, the 6
494494 director of administration shall discount the calculated value of the exemption to ninety-eight 7
495495 percent (98%) in order to establish a collection rate that is comparable to the collection rate 8
496496 achieved by municipalities in the levy of the motor vehicle excise tax. 9
497497 (11) For reimbursements payable in the year ending June 30, 2010, the director of 10
498498 administration shall reimburse cities and towns eighty-eight percent (88%) of the reimbursements 11
499499 payable pursuant to subsection (c)(10) above. 12
500500 (12) For fiscal year 2011 through to June 30, 2017, the state shall reimburse cities and 13
501501 towns, for the exemption pursuant to subsection (c)(10) above, ratably reduced to the appropriation. 14
502502 (13) For fiscal year 2018 and thereafter, each city, town, and fire district shall receive a 15
503503 reimbursement equal to the amount received in fiscal year 2017 plus an amount equal to the 16
504504 reduction from the FY 2018 baseline, as defined in subsection (b)(5) of this section, resulting from 17
505505 changes in: 18
506506 (i) The assessment percentage set forth in § 44-34-11(c)(1)(iii); 19
507507 (ii) The excise tax rate set forth in § 44-34.1-1(c)(5); 20
508508 (iii) Exemptions set forth in § 44-34.1-1(c)(1); and 21
509509 (iv) Exemptions for vehicles more than fifteen (15) years old as set forth in § 44-34-2. 22
510510 (14) In the event any city, town, or fire district sent out or sends out tax bills for fiscal year 23
511511 2018, which do not conform with the requirements of this act, the city, town, or fire district shall 24
512512 ensure that the tax bills for fiscal year 2018 are adjusted or an abatement is issued to conform to 25
513513 the requirements of this act. 26
514514 SECTION 7. Section 44-48.2-5 of the General Laws in Chapter 44-48.2 entitled "Rhode 27
515515 Island Economic Development Tax Incentives Evaluation Act of 2013" is hereby amended to read 28
516516 as follows: 29
517517 44-48.2-5. Economic development tax incentive evaluations — Analysis. 30
518518 (a) The additional analysis as required by § 44-48.2-4 shall include, but not be limited to: 31
519519 (1) A baseline assessment of the tax incentive, including, if applicable, the number of 32
520520 aggregate jobs associated with the taxpayers receiving such tax incentive and the aggregate annual 33
521521 revenue that such taxpayers generate for the state through the direct taxes applied to them and 34
522522
523523
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525525 through taxes applied to their employees; 1
526526 (2) The statutory and programmatic goals and intent of the tax incentive, if said goals and 2
527527 intentions are included in the incentive’s enabling statute or legislation; 3
528528 (3) The number of taxpayers granted the tax incentive during the previous twelve-month 4
529529 (12) period; 5
530530 (4) The value of the tax incentive granted, and ultimately claimed, listed by the North 6
531531 American Industrial Classification System (NAICS) Code associated with the taxpayers receiving 7
532532 such benefit, if such NAICS Code is available; 8
533533 (5) An assessment and five-year (5) projection of the potential impact on the state’s revenue 9
534534 stream from carry forwards allowed under such tax incentive; 10
535535 (6) An estimate of the economic impact of the tax incentive including, but not limited to: 11
536536 (i) A cost-benefit comparison of the revenue foregone by allowing the tax incentive 12
537537 compared to tax revenue generated by the taxpayer receiving the credit, including direct taxes 13
538-applied to them and taxes applied to their employees; and 14
538+applied to them and taxes applied to their employees; 14
539539 (ii) An estimate of the number of jobs that were the direct result of the incentive; and 15
540540 (iii) A statement by the chief executive officer of the commerce corporation as to whether, 16
541541 in his or her judgment, the statutory and programmatic goals of the tax benefit are being met, with 17
542542 obstacles to such goals identified, if possible; 18
543543 (7) The estimated cost to the state to administer the tax incentive if such information is 19
544544 available; 20
545545 (8) An estimate of the extent to which benefits of the tax incentive remained in state or 21
546546 flowed outside the state, if such information is available; 22
547547 (9) In the case of economic development tax incentives where measuring the economic 23
548548 impact is significantly limited due to data constraints, whether any changes in statute would 24
549549 facilitate data collection in a way that would allow for better analysis; 25
550550 (10) Whether the effectiveness of the tax incentive could be determined more definitively 26
551551 if the general assembly were to clarify or modify the tax incentive’s goals and intended purpose; 27
552552 (11) A recommendation as to whether the tax incentive should be continued, modified, or 28
553553 terminated; the basis for such recommendation; and the expected impact of such recommendation 29
554554 on the state’s economy; 30
555555 (12) The methodology and assumptions used in carrying out the assessments, projections 31
556556 and analyses required pursuant to subdivisions (1) through (8) of this section. 32
557557 (b) All departments, offices, boards, and agencies of the state shall cooperate with the chief 33
558558 of the office of revenue analysis and shall provide to the office of revenue analysis any records, 34
559559
560560
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562562 information (documentary and otherwise), data, and data analysis as may be necessary to complete 1
563563 the report required pursuant to this section. 2
564564 SECTION 8. Section 44-48.3-13 of the General Laws in Chapter 44-48.3 entitled "Rhode 3
565565 Island New Qualified Jobs Incentive Act 2015" is hereby amended to read as follows: 4
566566 44-48.3-13. Reporting requirements. 5
567567 (a) By August 1st of each year, each applicant approved for credits under this chapter shall 6
568568 report to the commerce corporation and the division of taxation the following information: 7
569569 (1) The number of total jobs created; 8
570570 (2) The applicable north American industry classification survey annual system code of 9
571571 each job created; 10
572572 (3) The annual salary of each job created; 11
573573 (4) The address of each new employee; 12
574574 (b) By September 1, 2016 and each year thereafter, the commerce corporation shall report 13
575575 the name, address, and amount of tax credit approved for each credit recipient during the previous 14
576576 state fiscal year to the governor, the speaker of the house of representatives, the president of the 15
577577 senate, the chairpersons of the house and senate finance committees, the house and senate fiscal 16
578578 advisors, and the department of revenue. 17
579579 (c) By October 1, 2016 and each year thereafter, the commerce corporation shall report for 18
580580 the year (1) the total number of businesses awarded credits in the previous fiscal year and (2) the 19
581581 name and address of each credit recipient. This report shall be available to the public for inspection 20
582582 by any person and shall be published by the chief executive of the commerce corporation on the 21
583583 commerce corporation and executive office of commerce websites. 22
584584 (d) By October 1st of each year the division of taxation shall report the name, address, and 23
585585 amount of tax credit received for each credit recipient during the previous state fiscal year to the 24
586586 governor, the chairpersons of the house and senate finance committees, the house and senate fiscal 25
587587 advisors, and the department of labor and training. This report shall be available to the public for 26
588588 inspection by any person and shall be published by the tax administrator on the tax division website. 27
589589 (e) By November 1st of each year the division of taxation shall report in the aggregate the 28
590590 information required under subsection 44-48.3-13(a). This report shall be available to the public 29
591591 for inspection by any person and shall be published by the tax administrator on the tax division 30
592592 website. 31
593593 SECTION 9. Section 42-142-6 of the General Laws in Chapter 42-142 entitled 32
594594 "Department of Revenue" is hereby repealed. 33
595595 42-142-6. Annual unified economic development report. 34
596596
597597
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599599 (a) The director of the department of revenue shall, no later than January 15th of each state 1
600600 fiscal year, compile and publish, in printed and electronic form, including on the internet, an annual 2
601601 unified economic development report that shall provide the following comprehensive information 3
602602 regarding the tax credits or other tax benefits conferred pursuant to §§ 42-64-10, 44-63-3, 42-64.5-4
603603 5, 42-64.3-1, and 44-31.2-6.1 during the preceding fiscal year: 5
604604 (1) The name of each recipient of any such tax credit or other tax benefit; the dollar amount 6
605605 of each such tax credit or other tax benefit; and summaries of the number of full-time and part-time 7
606606 jobs created or retained; an overview of benefits offered, and the degree to which job creation and 8
607607 retention, wage, and benefit goals and requirements of recipient and related corporations, if any, 9
608608 have been met. The report shall include aggregate dollar amounts of each category of tax credit or 10
609609 other tax benefit; to the extent possible, the amounts of tax credits and other tax benefits by 11
610610 geographical area; the number of recipients within each category of tax credit or retained; overview 12
611611 of benefits offered; and the degree to which job creation and retention, wage and benefit rate goals 13
612612 and requirements have been met within each category of tax credit or other tax benefit; 14
613613 (2) The cost to the state and the approving agency for each tax credit or other tax benefits 15
614614 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
615615 preceding fiscal year; 17
616616 (3) To the extent possible, the amounts of tax credits and other tax benefits by geographical 18
617617 area; 19
618618 (4) The extent to which any employees of and recipients of any such tax credits or other 20
619619 tax benefits has received RIte Care or RIte Share benefits or assistance; and 21
620620 (5) To the extent the data exists, a cost-benefit analysis prepared by the office of revenue 22
621621 analysis based upon the collected data under §§ 42-64-10, 44-63-3, 42-64.5-5, 42-64-3.1, and 44-23
622622 31.2-6.1, and required for the preparation of the unified economic development report. The cost-24
623623 benefit analysis may include, but shall not be limited to, the cost to the state for the revenue 25
624624 reductions; cost to administer the credit; projected revenues gained from the credit; and other 26
625625 metrics that can be measured along with a baseline assessment of the original intent of the 27
626626 legislation. The office of revenue analysis shall also indicate the purpose of the credit to the extent 28
627627 that it is provided in the enabling legislation, or note the absence of such information, and any 29
628628 measureable goals established by the granting authority of the credit. Where possible, the analysis 30
629629 shall cover a five-year (5) period projecting the cost and benefits over this period. The office of 31
630630 revenue analysis may utilize outside services or sources for development of the methodology and 32
631631 modeling techniques. The unified economic development report shall include the cost-benefit 33
632632 analysis starting January 15, 2014. The office of revenue analysis shall work in conjunction with 34
633633
634634
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636636 Rhode Island commerce corporation as established by chapter 64 of this title. 1
637637 (b) After the initial report, the division of taxation will perform reviews of each recipient 2
638638 of this tax credit or other tax benefits to ensure the accuracy of the employee data submitted. The 3
639639 division of taxation will include a summary of the reviews performed, along with any adjustments, 4
640640 modifications, and/or allowable recapture of tax credit amounts and data included on prior year 5
641641 reports. 6
642642 SECTION 10. This act shall take effect upon passage. 7
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649649 EXPLANATION
650650 BY THE LEGISLATIVE COUNCIL
651651 OF
652652 A N A C T
653653 RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND COMMERC E
654654 CORPORATION
655655 ***
656656 This act would streamline tax incentive reporting by eliminating certain division of taxation 1
657657 reporting requirements and using alternative methods of reporting such as the tax division website. 2
658658 This act would take effect upon passage. 3
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662662