Allows the sharing of certain information between the division of taxation and the secretary of state's office regarding an entity's tax status as compliant or non-compliant.
Impact
The impact of S3056 on state laws is notable, as it amends existing statutes to authorize the division of taxation to share compliant and non-compliant status of corporations with the secretary of state's office. If a corporation is found to be non-compliant, the secretary of state is mandated to initiate revocation proceedings of the corporation’s ability to do business in the state. This decision could significantly affect business operations, as it introduces stricter enforcement measures for businesses failing to meet their tax obligations.
Summary
S3056 is an act relating to corporations in Rhode Island, specifically amending the Rhode Island Business Corporation Act to facilitate the sharing of tax compliance information between the division of taxation and the secretary of state's office. The bill aims to ensure that the affairs of corporations in the state are compliant with tax obligations by allowing the secretary of state access to tax status information on corporations. This access is intended to streamline processes and enhance enforcement measures regarding compliance with state fees and taxes, which is a significant regulatory aspect for maintaining corporate good standing.
Contention
Discussions surrounding the bill have pointed to a potential point of contention regarding privacy and the handling of sensitive tax information. While the bill includes provisions to protect state and federal tax information and requires the secretary of state's office to adhere to confidentiality laws, concerns remain about the implications of tax data sharing and the potentially harsh penalties for businesses that inadvertently fall behind on tax payments. Proponents argue that stricter enforcement ensures fairness and compliance, while opponents raise concerns about the risk of punitive actions against businesses due to bureaucratic oversight.
Reforms the organizational structure for the Department of Transportation and Development including its duties, powers, and responsibilities of officers and employees (EN INCREASE SD EX See Note)