Rhode Island 2025 Regular Session

Rhode Island Senate Bill S0614 Compare Versions

Only one version of the bill is available at this time.

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5	5	2025 -- S 0614
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7	7	LC001321
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9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2025
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO ALCOHOLIC BEVERAGES -- TAXATION OF BEVERAGE S
16	16	Introduced By: Senators Britto, McKenney, Sosnowski, Gu, Felag, LaMountain,
17	17	DiPalma, and Bissaillon
18	18	Date Introduced: March 06, 2025
19	19	Referred To: Senate Finance
20	20	(Dept. of Revenue)
21	21
22	22	It is enacted by the General Assembly as follows:
23	23	SECTION 1. Section 3-10-5 of the General Laws in Chapter 3-10 entitled "Taxation of 1
24	24	Beverages" is hereby amended to read as follows: 2
25	25	3-10-5. Information supplemental to returns — Audit of books. 3
26	26	(a) The tax administrator may at any time request further information from any person or 4
27	27	from the officers and employees of any corporation that he or she may deem necessary to verify, 5
28	28	explain, or correct any return made in pursuance of the provisions of this chapter, and for the like 6
29	29	purpose, the administrator or his or her authorized agent may examine the books of account of that 7
30	30	person or corporation during business hours. 8
31	31	(b) Each Class A licensee authorized to sell intoxicating beverages at wholesale or retail in 9
32	32	this state shall file an annual report on or before February 1 with the division of taxation in the form 10
33	33	required by the tax administrator. Such report shall include, but not be limited to, total sales of 11
34	34	alcoholic beverages, sales tax, and excise tax collections on such sales for the immediately 12
35	35	preceding calendar year. Annually, on or before May 1, the tax administrator shall prepare and 13
36	36	submit to the chairs of the house and senate finance committees a report reflecting data from the 14
37	37	annual reports submitted by said licensee to the division of taxation. The tax administrator’s report 15
38	38	shall compile total sales of alcoholic beverages, sales tax, and excise tax collections by county. 16
39	39	SECTION 2. Section 31-36-20 of the General Laws in Chapter 31-36 entitled "Motor Fuel 17
40	40	Tax" is hereby amended to read as follows: 18
41	41	31-36-20. Disposition of proceeds. 19
42	42
43	43
44	44	LC001321 - Page 2 of 15
45	45	(a) Notwithstanding any other provision of law to the contrary, all moneys paid into the 1
46	46	general treasury under the provisions of this chapter or chapter 37 of this title, and title 46 shall be 2
47	47	applied to and held in a separate fund and be deposited in any depositories that may be selected by 3
48	48	the general treasurer to the credit of the fund, which fund shall be known as the Intermodal Surface 4
49	49	Transportation Fund; provided, that in fiscal year 2004 for the months of July through April six and 5
50	50	eighty-five hundredth cents ($0.0685) per gallon of the tax imposed and accruing for the liability 6
51	51	under the provisions of § 31-36-7, less refunds and credits, shall be transferred to the Rhode Island 7
52	52	public transit authority as provided under § 39-18-21. For the months of May and June in fiscal 8
53	53	year 2004, the allocation shall be five and five hundredth cents ($0.0505). Thereafter, until fiscal 9
54	54	year 2006, the allocation shall be six and twenty-five hundredth cents ($0.0625). For fiscal years 10
55	55	2006 through FY 2008, the allocation shall be seven and twenty-five hundredth cents ($0.0725); 11
56	56	provided, that expenditures shall include the costs of a market survey of non-transit users and a 12
57	57	management study of the agency to include the feasibility of moving the Authority into the 13
58	58	Department of Transportation, both to be conducted under the auspices of the state budget officer. 14
59	59	The state budget officer shall hire necessary consultants to perform the studies, and shall direct 15
60	60	payment by the Authority. Both studies shall be transmitted by the Budget Officer to the 2006 16
61	61	session of the General Assembly, with comments from the Authority. For fiscal year 2009, the 17
62	62	allocation shall be seven and seventy-five hundredth cents ($0.0775), of which one-half cent 18
63	63	($0.005) shall be derived from the one cent ($0.01) per gallon environmental protection fee 19
64	64	pursuant to § 46-12.9-11. For fiscal years 2010 and thereafter, the allocation shall be nine and 20
65	65	seventy-five hundredth cents ($0.0975), of which of one-half cent ($0.005) shall be derived from 21
66	66	the one cent ($0.01) per gallon environmental protection fee pursuant to § 46-12.9-11. One cent 22
67	67	($0.01) per gallon shall be transferred to the Elderly/Disabled Transportation Program of the 23
68	68	department of human services, and the remaining cents per gallon shall be available for general 24
69	69	revenue as determined by the following schedule: 25
70	70	(i) For the fiscal year 2000, three and one-fourth cents ($0.0325) shall be available for 26
71	71	general revenue. 27
72	72	(ii) For the fiscal year 2001, one and three-fourth cents ($0.0175) shall be available for 28
73	73	general revenue. 29
74	74	(iii) For the fiscal year 2002, one-fourth cent ($0.0025) shall be available for general 30
75	75	revenue. 31
76	76	(iv) For the fiscal year 2003, two and one-fourth cent ($0.0225) shall be available for 32
77	77	general revenue. 33
78	78	(v) For the months of July through April in fiscal year 2004, one and four-tenths cents 34
79	79
80	80
81	81	LC001321 - Page 3 of 15
82	82	($0.014) shall be available for general revenue. For the months of May through June in fiscal year 1
83	83	2004, three and two-tenths cents ($0.032) shall be available for general revenue, and thereafter, 2
84	84	until fiscal year 2006, two cents ($0.02) shall be available for general revenue. For fiscal year 2006 3
85	85	through fiscal year 2009 one cent ($0.01) shall be available for general revenue. 4
86	86	(2) All deposits and transfers of funds made by the tax administrator under this section, 5
87	87	including those to the Rhode Island public transit authority, the department of human services, the 6
88	88	Rhode Island turnpike and bridge authority, and the general fund, shall be made within twenty-four 7
89	89	(24) hours of receipt or previous deposit of the funds in question monthly and credited and paid by 8
90	90	the general treasurer to the designated fund in accordance with this section. 9
91	91	(3) Commencing in fiscal year 2004, the Director of the Rhode Island Department of 10
92	92	Transportation is authorized to remit, on a monthly or less frequent basis as shall be determined by 11
93	93	the Director of the Rhode Island Department of Transportation, or his or her designee, or at the 12
94	94	election of the Director of the Rhode Island Department of Transportation, with the approval of the 13
95	95	Director of the Department of Administration, to an indenture trustee, administrator, or other third 14
96	96	party fiduciary, in an amount not to exceed two cents ($0.02) per gallon of the gas tax imposed, in 15
97	97	order to satisfy debt service payments on aggregate bonds issued pursuant to a Joint Resolution and 16
98	98	Enactment Approving the Financing of Various Department of Transportation Projects adopted 17
99	99	during the 2003 session of the General Assembly, and approved by the Governor. 18
100	100	(4) Commencing in fiscal year 2015, three and one-half cents ($0.035) shall be transferred 19
101	101	to the Rhode Island Turnpike and Bridge Authority to be used for maintenance, operations, capital 20
102	102	expenditures and debt service on any of its projects as defined in chapter 12 of title 24 in lieu of a 21
103	103	toll on the Sakonnet River Bridge. The Rhode Island turnpike and bridge authority is authorized to 22
104	104	remit to an indenture trustee, administrator, or other third-party fiduciary any or all of the foregoing 23
105	105	transfers in order to satisfy and/or secure its revenue bonds and notes and/or debt service payments 24
106	106	thereon, including, but not limited to, the bonds and notes issued pursuant to the Joint Resolution 25
107	107	set forth in Section 3 of Article 6 of Chapter 23 of the Public Laws of 2010. Notwithstanding any 26
108	108	other provision of said Joint Resolution, the Rhode Island turnpike and bridge authority is expressly 27
109	109	authorized to issue bonds and notes previously authorized under said Joint Resolution for the 28
110	110	purpose of financing all expenses incurred by it for the formerly authorized tolling of the Sakonnet 29
111	111	River Bridge and the termination thereof. 30
112	112	(b) Notwithstanding any other provision of law to the contrary, all other funds in the fund 31
113	113	shall be dedicated to the department of transportation, subject to annual appropriation by the general 32
114	114	assembly. The director of transportation shall submit to the general assembly, budget office and 33
115	115	office of the governor annually an accounting of all amounts deposited in and credited to the fund 34
116	116
117	117
118	118	LC001321 - Page 4 of 15
119	119	together with a budget for proposed expenditures for the succeeding fiscal year in compliance with 1
120	120	§§ 35-3-1 and 35-3-4. On order of the director of transportation, the state controller is authorized 2
121	121	and directed to draw his or her orders upon the general treasurer for the payments of any sum or 3
122	122	portion of the sum that may be required from time to time upon receipt of properly authenticated 4
123	123	vouchers. 5
124	124	(c) At any time the amount of the fund is insufficient to fund the expenditures of the 6
125	125	department of transportation, not to exceed the amount authorized by the general assembly, the 7
126	126	general treasurer is authorized, with the approval of the governor and the director of administration, 8
127	127	in anticipation of the receipts of monies enumerated in this section to advance sums to the fund, for 9
128	128	the purposes specified in this section, any funds of the state not specifically held for any particular 10
129	129	purpose. However, all the advances made to the fund shall be returned to the general fund 11
130	130	immediately upon the receipt by the fund of proceeds resulting from the receipt of monies to the 12
131	131	extent of the advances. 13
132	132	SECTION 3. Section 44-1-2 of the General Laws in Chapter 44-1 entitled "State Tax 14
133	133	Officials" is hereby amended to read as follows: 15
134	134	44-1-2. Powers and duties of tax administrator. 16
135	135	The tax administrator is required: 17
136	136	(1) To assess and collect all taxes previously assessed by the division of state taxation in 18
137	137	the department of revenue and regulation, including the franchise tax on domestic corporations, 19
138	138	corporate excess tax, tax upon gross earnings of public service corporations, tax upon interest 20
139	139	bearing deposits in national banks, the inheritance tax, tax on gasoline and motor fuels, and tax on 21
140	140	the manufacture of alcoholic beverages; 22
141	141	(2) To assess and collect the taxes upon banks and insurance companies previously 23
142	142	administered by the division of banking and insurance in the department of revenue and regulation, 24
143	143	including the tax on foreign and domestic insurance companies, tax on foreign building and loan 25
144	144	associations, deposit tax on savings banks, and deposit tax on trust companies; 26
145	145	(3) To assess and collect the tax on pari-mutuel or auction mutuel betting, previously 27
146	146	administered by the division of horse racing in the department of revenue and regulation; 28
147	147	(4) [Deleted by P.L. 2006, ch. 246, art. 38, § 10.] 29
148	148	(5) To assess and collect the monthly surcharges that are collected by telecommunication 30
149	149	services providers pursuant to § 39-21.1-14 and are remitted to the division of taxation; 31
150	150	(6) To audit, assess, and collect all unclaimed intangible and tangible property pursuant to 32
151	151	chapter 21.1 of title 33; 33
152	152	(7) To provide to the department of labor and training any state tax information, state 34
153	153
154	154
155	155	LC001321 - Page 5 of 15
156	156	records, or state documents they or the requesting agency certify as necessary to assist the agency 1
157	157	in efforts to investigate suspected misclassification of employee status, wage and hour violations, 2
158	158	or prevailing wage violations subject to the agency’s jurisdiction, even if deemed confidential under 3
159	159	applicable law, provided that the confidentiality of such materials shall be maintained, to the extent 4
160	160	required of the releasing department by any federal or state law or regulation, by all state 5
161	161	departments to which the materials are released and no such information shall be publicly disclosed, 6
162	162	except to the extent necessary for the requesting department or agency to adjudicate a violation of 7
163	163	applicable law. The certification must include a representation that there is probable cause to 8
164	164	believe that a violation has occurred. State departments sharing this information or materials may 9
165	165	enter into written agreements via memorandums of understanding to ensure the safeguarding of 10
166	166	such released information or materials; and 11
167	167	(8) [Expires December 31, 2021.] To preserve the Rhode Island tax base under Rhode 12
168	168	Island law prior to the December 22, 2017, Congressional enactment of Public Law 115-97, The 13
169	169	Tax Cuts and Jobs Act, the tax administrator, upon prior written notice to the speaker of the house, 14
170	170	senate president, and chairpersons of the house and senate finance committees, is specifically 15
171	171	authorized to amend tax forms and related instructions in response to any changes the Internal 16
172	172	Revenue Service makes to its forms, regulations, and/or processing which will materially impact 17
173	173	state revenues, to the extent that impact is measurable. Any Internal Revenue Service changes to 18
174	174	forms, regulations, and/or processing which go into effect during the current tax year or within six 19
175	175	(6) months of the beginning of the next tax year and which will materially impact state revenue 20
176	176	will be deemed grounds for the promulgation of emergency rules and regulations under § 42-35-21
177	177	2.10. The provisions of this subsection (8) shall sunset on December 31, 2021. 22
178	178	SECTION 4. Sections 44-11-7.1 and 44-11-29 of the General Laws in Chapter 44-11 23
179	179	entitled "Business Corporation Tax" are hereby amended to read as follows: 24
180	180	44-11-7.1. Limitations on assessment. 25
181	181	(a) General. Except as provided in this section, the amount of the Rhode Island corporate 26
182	182	income tax shall be assessed within three (3) years after the return was filed, whether or not the 27
183	183	return was filed on or after the prescribed date. For this purpose, a tax return filed before the due 28
184	184	date shall be considered as filed on the due date. 29
185	185	(b) Exceptions. 30
186	186	(1) The tax may be assessed at any time if: 31
187	187	(i) No return is filed. 32
188	188	(ii) A false or fraudulent return is filed with intent to avoid tax. 33
189	189	(2) Where, before the expiration of the time prescribed in this section for the assessment of 34
190	190
191	191
192	192	LC001321 - Page 6 of 15
193	193	tax, or before the time as extended, both the tax administrator and the taxpayer have consented, in 1
194	194	writing, to its assessment after that time, the tax may be assessed at any time prior to the expiration 2
195	195	of the agreed upon period. 3
196	196	(3) If a taxpayer’s deficiency is attributable to an excessive net operating loss carryback 4
197	197	allowance, it may be assessed at any time that a deficiency for the taxable year of the loss may be 5
198	198	assessed. 6
199	199	(4) An erroneous refund shall be considered to create an underpayment of tax on the date 7
200	200	made. An assessment of a deficiency arising out of an erroneous refund may be made at any time 8
201	201	within three (3) years thereafter, or at any time if it appears that any part of the refund was induced 9
202	202	by fraud or misrepresentation of a material fact. 10
203	203	(c) Notwithstanding the provisions of this section, the tax may be assessed at any time 11
204	204	within six (6) years after the return was filed if a taxpayer omits from its Rhode Island income an 12
205	205	amount properly includable therein that is in excess of twenty-five percent (25%) of the amount of 13
206	206	Rhode Island income stated in the return. For this purpose there shall not be taken into account any 14
207	207	amount that is omitted in the return if the amount is disclosed in the return, or in a statement attached 15
208	208	to the return, in a manner adequate to apprise the tax administrator of the nature and amount of the 16
209	209	item. 17
210	210	(d) The running of the period of limitations on assessment or collection of the tax or other 18
211	211	amount, or of a transferee’s liability, shall, after the mailing of a notice of deficiency, be suspended 19
212	212	for any period during which the tax administrator is prohibited from making the assessment or from 20
213	213	collecting by levy, and for sixty (60) days thereafter. 21
214	214	(e) No period of limitations specified in any other law shall apply to the assessment or 22
215	215	collection of Rhode Island corporate income tax. Under no circumstances shall the tax 23
216	216	administrator issue any notice of deficiency determination for Rhode Island business corporation 24
217	217	tax due and payable more than ten (10) years after the date upon which the return was filed or due 25
218	218	to be filed, nor shall the tax administrator commence any collection action for any business 26
219	219	corporation tax due and payable unless the collection action is commenced within ten (10) years 27
220	220	after a notice of deficiency determination became a final collectible assessment; provided however, 28
221	221	that the tax administrator may renew a statutory lien that was initially filed within the ten-year (10) 29
222	222	period for collection actions. Both of the aforementioned ten-year (10) periods are tolled for any 30
223	223	period of time the taxpayer is in federal bankruptcy or state receivership proceedings. “Collection 31
224	224	action” refers to any activity undertaken by the division of taxation to collect on any state tax 32
225	225	liabilities that are final, due, and payable under Rhode Island law. “Collection action” may include, 33
226	226	but is not limited to, any civil action involving a liability owed under chapter 11 of title 44. 34
227	227
228	228
229	229	LC001321 - Page 7 of 15
230	230	(f) The ten-year (10) limitation shall not apply to the renewal or continuation of the state’s 1
231	231	attempt to collect a liability that became final, due, and payable within the ten-year (10) limitation 2
232	232	periods set forth in this section. 3
233	233	44-11-29. Notice to tax administrator of sale of assets — Tax due. 4
234	234	(a) The sale or transfer of the major part in value of the assets of a domestic corporation, 5
235	235	domestic limited liability company, domestic limited partnership, or any other domestic business 6
236	236	entity, or of the major part in value of the assets situated in this state of a foreign corporation, 7
237	237	foreign limited liability company, foreign limited partnership, or any other foreign business entity, 8
238	238	other than in the ordinary course of trade and in the regular and usual prosecution of business by 9
239	239	said corporation, limited liability company, limited partnership, or any other business entity 10
240	240	whether domestic or foreign, and the sale or transfer of the major part in value of the assets of a 11
241	241	domestic corporation, domestic limited liability company, domestic limited partnership, or any 12
242	242	other domestic corporation business entity, or of the major part in value of the assets situated in 13
243	243	this state of a foreign corporation, foreign limited liability company, foreign limited partnership, or 14
244	244	any other foreign business entity that is engaged in the business of buying, selling, leasing, renting, 15
245	245	managing, or dealing in real estate, shall be fraudulent and void as against the state unless the 16
246	246	corporation, limited liability company, limited partnership, or any other business entity, whether 17
247	247	domestic or foreign, at least five (5) business days before the sale or transfer, notifies the tax 18
248	248	administrator of the proposed sale or transfer and of the price, terms, and conditions of the sale or 19
249	249	transfer and of the character and location of the assets by requesting a letter of good standing from 20
250	250	the tax division. Such notification must be received by the division of taxation at least five (5) 21
251	251	business days before the sale or transfer. Whenever a corporation, limited liability company, limited 22
252	252	partnership, or any other business entity, whether domestic or foreign, makes such a sale or transfer, 23
253	253	any and all tax returns required to be filed under this title must be filed and any and all taxes 24
254	254	imposed under this title shall become due and payable at the time when the tax administrator is so 25
255	255	notified of the sale or transfer, or, if he or she is not so notified, at the time when he or she should 26
256	256	have been notified of the sale or transfer. 27
257	257	(b) This section shall not apply to sales by receivers, assignees under a voluntary 28
258	258	assignment for the benefit of creditors, trustees in bankruptcy, debtors in possession in bankruptcy, 29
259	259	or public officers acting under judicial process. 30
260	260	SECTION 5. Section 44-18-0 of the General Laws in Chapter 44-18 entitled "Sales and 31
261	261	Use Taxes — Liability and Computation" is hereby amended to read as follows: 32
262	262	44-18-30B. Exemption from sales tax for sales by writers, composers, artists — 33
263	263	Findings. 34
264	264
265	265
266	266	LC001321 - Page 8 of 15
267	267	(a) The general assembly makes the following findings of facts: 1
268	268	(1) The arts and culture are a significant asset for Rhode Island, one that generates revenue 2
269	269	through increased tourism and economic activity; creates jobs and economic opportunities; 3
270	270	revitalizes communities adding to quality of life and property values; and fosters creativity, 4
271	271	innovation, and entrepreneurship. 5
272	272	(2) Since 1998, the establishment of arts districts, where “one-of-a-kind, limited-6
273	273	production” works of art may be sold exempt from state sales tax, has resulted in an increased 7
274	274	presence for the arts in designated cities and towns, with benefits to those communities and to the 8
275	275	state. 9
276	276	(3) Since the establishment of arts districts, many communities have sought legislation to 10
277	277	expand the program to their city or town. 11
278	278	(4) There is value in expanding the arts district program statewide, providing incentives for 12
279	279	the sale and purchase of art. This is a unique opportunity for Rhode Island to shape history, and 13
280	280	gain an advantage over other states, by becoming the first-and-only state in the country to declare 14
281	281	a statewide sales tax exemption on art. This will strengthen Rhode Island’s identity as an arts-15
282	282	friendly destination and “State of the Arts.” 16
283	283	(b)(1) This section only applies to sales by writers, composers, and artists residing in and 17
284	284	conducting a business within the state of Rhode Island. For the purposes of this section, a “work” 18
285	285	means an original and creative work, whether written, composed, or executed for “one-of-a-kind, 19
286	286	limited production” that falls into one of the following categories: 20
287	287	(i) A book or other writing; 21
288	288	(ii) A play or the performance of said play; 22
289	289	(iii) A musical composition or the performance of said composition; 23
290	290	(iv) A painting, print, photograph, or other like picture; 24
291	291	(v) A sculpture; 25
292	292	(vi) Traditional and fine crafts; 26
293	293	(vii) The creation of a film or the acting within the film; or 27
294	294	(viii) The creation of a dance or the performance of the dance. 28
295	295	(2) For the purposes of this section, a “work” includes any product generated as a result of 29
296	296	any of the above categories. 30
297	297	(3) For the purposes of this section, a “work” does not apply to any piece or performance 31
298	298	created or executed for industry-oriented, commercial, or related production. 32
299	299	(c)(1) This section applies to sales by any individual: 33
300	300	(i) Who is a resident of, and has a principal place of business situated in, the state of Rhode 34
301	301
302	302
303	303	LC001321 - Page 9 of 15
304	304	Island. 1
305	305	(ii) Who is determined by the tax administrator in consultation with the Rhode Island 2
306	306	council on the arts, after consideration of any evidence he or she deems necessary or that is 3
307	307	submitted to him or her by the individual, to have written, composed, or executed, either solely or 4
308	308	jointly, a work or works that would fall into one of the categories listed in subsection (b)(1). 5
309	309	(2) This section also applies to sales by any other gallery located in the state of Rhode 6
310	310	Island. 7
311	311	(3) The tax administrator shall not make a determination unless: 8
312	312	(i) The individual(s) concerned duly make(s) an application to the tax administrator for the 9
313	313	sales tax exemption that applies to the works defined in this section; and 10
314	314	(ii) The individual has complied and continues to comply with any and all requests made 11
315	315	by the tax administrator. 12
316	316	(d) Any individual to whom this section applies, and who makes an application to the tax 13
317	317	administrator, is entitled to a sales tax exemption for the sale of a work or works sold from the 14
318	318	individual’s business located in the State of Rhode Island that would, apart from this section, be 15
319	319	subject to the tax rate imposed by the state of Rhode Island. 16
320	320	(e) When an individual makes a request for the exemption, the tax administrator is entitled 17
321	321	to all books, documents, or other evidence relating to the publication, production, or creation of the 18
322	322	works that may be deemed necessary by the tax administrator for the purposes of the exemption. 19
323	323	The time period in which to provide this information is in the sole discretion of the tax administrator 20
324	324	and specified in the notice. 21
325	325	(f) In addition to the information required in subsection (e), the tax administrator may 22
326	326	require the individual(s) to submit an annual, certified accounting of the numbers of works sold; 23
327	327	the type of work sold; and the date of the sale. Failure to file this report may, in the sole discretion 24
328	328	of the tax administrator, terminate the individual’s eligibility for the exemption. 25
329	329	(g) Any person storing, using, or otherwise consuming in this state any work or works 26
330	330	deemed to be exempt from the sales tax pursuant to this section is not liable for the use tax on the 27
331	331	work or works. 28
332	332	(h) Notwithstanding the provisions of this section, any individual to whom this section may 29
333	333	apply shall comply with all the administration, collection, and other provisions of chapters 18 and 30
334	334	19 of this title. 31
335	335	(i) The certificate of exemption shall be valid for four (4) years from the date of issue. All 32
336	336	certificates issued prior to the effective date of this section shall expire four (4) years from the 33
337	337	effective date of this section. 34
338	338
339	339
340	340	LC001321 - Page 10 of 15
341	341	(4)(j) The Rhode Island council on the arts will oversee the transition to a statewide arts 1
342	342	district program and work with the state tourism agencies; local chambers of commerce; and 2
343	343	advertising/marketing agencies to promote this program, and will coordinate its efforts with the 3
344	344	city and town governments. The Rhode Island council on the arts may request, and shall receive, 4
345	345	from any department, division, board, bureau, commission, or agency of the state any data, 5
346	346	assistance, and resources, including additional personnel, that will enable it to properly carry out 6
347	347	this program. 7
348	348	(5) The tax administrator, in cooperation with the Rhode Island council on the arts, will 8
349	349	gather data to assess the overall impact of the statewide arts district program, and issue an annual 9
350	350	report, including, but not be limited to, the impact of the tax exemption on employment, tourism, 10
351	351	sales, and spending within the arts sector and adjacent businesses, and any other factors that 11
352	352	describe the impact of the program. 12
353	353	SECTION 6. Section 44-19-13 of the General Laws in Chapter 44-19 entitled "Sales and 13
354	354	Use Taxes — Enforcement and Collection" is hereby amended to read as follows: 14
355	355	44-19-13. Notice of determination. 15
356	356	(a) The tax administrator shall give to the retailer or to the person storing, using, or 16
357	357	consuming the tangible personal property a written notice of his or her determination. Except in the 17
358	358	case of fraud, intent to evade the provisions of this article, failure to make a return, or claim for 18
359	359	additional amount pursuant to §§ 44-19-16 — 44-19-19, every notice of a deficiency determination 19
360	360	shall be mailed within three (3) years after the fifteenth (15th) day of the calendar month following 20
361	361	the month for which the amount is proposed to be determined or within three (3) years after the 21
362	362	return is filed, whichever period expires later, unless a longer period is agreed upon by the tax 22
363	363	administrator and the taxpayer. 23
364	364	(b) Notwithstanding the provisions of subsection (a) of this section, under no circumstances 24
365	365	shall the tax administrator issue a notice of a deficiency determination for any sales or use tax 25
366	366	determined to be due and payable more than ten (10) years after the return is filed or was due to be 26
367	367	filed, nor shall the tax administrator commence any collection action for any tax that is due and 27
368	368	payable unless the collection action is commenced within ten (10) years after a notice of a 28
369	369	deficiency determination becomes a final collectible assessment; provided, however, that the tax 29
370	370	administrator may renew a statutory lien that was initially filed within the ten-year (10) period for 30
371	371	collection actions. Both of the aforementioned ten-year (10) periods are tolled for any period of 31
372	372	time the taxpayer is in federal bankruptcy or state receivership proceedings. “Collection action” 32
373	373	refers to any activity undertaken by the division of taxation to collect on any state tax liabilities that 33
374	374	are final, due, and payable under Rhode Island law. “Collection action” may include, but is not 34
375	375
376	376
377	377	LC001321 - Page 11 of 15
378	378	limited to, any civil action involving a liability owed under chapters 18, 18.1, 18.2, and 19 of title 1
379	379	44. This section excludes any sales and use tax liabilities that are deemed trust funds as defined in 2
380	380	§ 44-19-35, as well as any meals and beverage tax liabilities that are collected pursuant to § 44-18-3
381	381	18.1, and any hotel tax liabilities that are collected pursuant to § 44-18-36.1. 4
382	382	(c) The ten-year (10) limitation shall not apply to the renewal or continuation of the state’s 5
383	383	attempt to collect a liability that became final, due, and payable within the ten-year (10) limitation 6
384	384	periods set forth in this section. 7
385	385	SECTION 7. Section 44-20-5 of the General Laws in Chapter 44-20 entitled "Cigarette and 8
386	386	Other Tobacco Products Tax" is hereby amended to read as follows: 9
387	387	44-20-5. Expiration, duration, and renewal of manufacturer’s, importer’s, 10
388	388	distributor’s, and dealer’s licenses. [Effective January 1, 2025.] 11
389	389	(a) Effective January 1, 2025, to add manufacturer and distributor: Any manufacturer, 12
390	390	importer, or distributor license and any license issued by the tax administrator authorizing a dealer 13
391	391	to sell cigarettes and/or other tobacco products and/or electronic nicotine-delivery system products 14
392	392	in this state shall expire at midnight on June 30 next succeeding the date of issuance unless (1) 15
393	393	suspended or revoked by the tax administrator; (2) the business with respect to which the license 16
394	394	was issued changes ownership; (3) the manufacturer, importer, distributor, or dealer ceases to 17
395	395	transact the business for which the license was issued; or (4) after a period of time set by the 18
396	396	administrator; provided such period of time shall not be longer than three (3) years, in any of which 19
397	397	cases the license shall expire and terminate and the holder shall immediately return the license to 20
398	398	the tax administrator. 21
399	399	(b) Every holder of a dealer’s license shall annually, on or before February 1 of each year, 22
400	400	renew its license by filing an application for renewal along with a twenty-five dollar ($25.00) 23
401	401	renewal fee. The renewal license is valid for the period July 1 of that calendar year through June 24
402	402	30 of the subsequent calendar year. 25
403	403	(c) Every holder of a manufacturer's, importer's, or distributor's license shall annually, on 26
404	404	or before February 1 of each year, renew its license by filing an application for renewal along with 27
405	405	a one thousand dollar ($1000) renewal fee; provided, that for a distributor who or that does not 28
406	406	affix stamps, the renewal fee shall be one hundred dollars ($100). The renewal license is valid for 29
407	407	the period beginning July 1 of that calendar year through June 30 of the subsequent calendar year. 30
408	408	SECTION 8. Section 44-23-9 of the General Laws in Chapter 44-23 entitled "Estate and 31
409	409	Transfer Taxes — Enforcement and Collection" is hereby amended to read as follows: 32
410	410	44-23-9. Assessment and notice of estate tax — Collection powers — Lien. 33
411	411	(a) The tax imposed by § 44-22-1.1 shall be assessed upon the full and fair cash value of 34
412	412
413	413
414	414	LC001321 - Page 12 of 15
415	415	the net estate determined by the tax administrator as provided in this chapter. Notice of the amount 1
416	416	of the tax shall be mailed to the executor, administrator, or trustee, but failure to receive the notice 2
417	417	does not excuse the nonpayment of or invalidate the tax. The tax administrator shall receive and 3
418	418	collect the assessed taxes in the same manner and with the same powers as are prescribed for and 4
419	419	given to the collectors of taxes by chapters 7 — 9 of this title. The tax shall be due and payable as 5
420	420	provided in § 44-23-16, shall be paid to the tax administrator, and shall be and remain a lien upon 6
421	421	the estate until it is paid. All executors, administrators, and trustees are personally liable for the tax 7
422	422	until it is paid. 8
423	423	(b) Notwithstanding the provisions of subsection (a) of this section, under no circumstances 9
424	424	shall the tax administrator issue any notice of deficiency determination for the amount of the estate 10
425	425	tax due more than ten (10) years after the return was filed or should have been filed, nor shall the 11
426	426	tax administrator commence any collection action for any estate tax due and payable unless the 12
427	427	collection action is commenced within ten (10) years after the date a notice of deficiency 13
428	428	determination became a final collectible assessment. “Collection action” refers to any activity 14
429	429	undertaken by the division of taxation to collect on any state tax liabilities that are final, due, and 15
430	430	payable under Rhode Island law. “Collection action” may include, but is not limited to, any civil 16
431	431	action involving a liability owed under chapters 22 and 23 of title 44. 17
432	432	(c) The ten-year (10) limitation shall not apply to the renewal or continuation of the state’s 18
433	433	attempt to collect a liability that became final, due, and payable within the ten-year (10) limitation 19
434	434	periods set forth in this section. 20
435	435	SECTION 9. Section 44-30-83 of the General Laws in Chapter 44-30 entitled "Personal 21
436	436	Income Tax" is hereby amended to read as follows: 22
437	437	44-30-83. Limitations on assessment. 23
438	438	(a) General. Except as otherwise provided in this section the amount of the Rhode Island 24
439	439	personal income tax shall be assessed within three (3) years after the return was filed, whether or 25
440	440	not the return was filed on or after the prescribed date. For this purpose a tax return filed before the 26
441	441	due date shall be considered as filed on the due date; and a return of withholding tax for any period 27
442	442	ending with or within a calendar year filed before April 15 of the succeeding calendar year shall be 28
443	443	considered filed on April 15 of the succeeding calendar year. 29
444	444	(b) Exceptions. 30
445	445	(1) Assessment at any time. The tax may be assessed at any time if: 31
446	446	(i) No return is filed; 32
447	447	(ii) A false or fraudulent return is filed with intent to evade tax; or 33
448	448	(iii) The taxpayer fails to file a report, pursuant to § 44-30-59, of a change, correction, or 34
449	449
450	450
451	451	LC001321 - Page 13 of 15
452	452	amended return, increasing his or her federal taxable income as reported on his or her federal 1
453	453	income tax return or to report a change or correction that is treated in the same manner as if it were 2
454	454	a deficiency for federal income tax purposes. 3
455	455	(2) Extension by agreement. Where, before the expiration of the time prescribed in this 4
456	456	section for the assessment of tax, or before the time as extended pursuant to this section, both the 5
457	457	tax administrator and the taxpayer have consented in writing to its assessment after that time, the 6
458	458	tax may be assessed at any time prior to the expiration of the period agreed upon. 7
459	459	(3) Report of changed or corrected federal income. If the taxpayer shall, pursuant to § 44-8
460	460	30-59, file an amended return, or report a change or correction increasing his or her federal taxable 9
461	461	income or report a change or correction that is treated in the same manner as if it were a deficiency 10
462	462	for federal income tax purposes, an assessment may be made at any time prior to two (2) years after 11
463	463	the report or amended return was filed. This assessment of Rhode Island personal income tax shall 12
464	464	not exceed the amount of the increase attributable to the federal change, correction, or items 13
465	465	amended on the taxpayer’s amended federal income tax return. The provisions of this paragraph 14
466	466	shall not affect the time within which or the amount for which an assessment may otherwise be 15
467	467	made. 16
468	468	(4) Deficiency attributable to net operating loss carryback. If a taxpayer’s deficiency is 17
469	469	attributable to an excessive net operating loss carryback allowance, it may be assessed at any time 18
470	470	that a deficiency for the taxable year of the loss may be assessed. 19
471	471	(5) Recovery of erroneous refund. An erroneous refund shall be considered to create an 20
472	472	underpayment of tax on the date made. An assessment of a deficiency arising out of an erroneous 21
473	473	refund may be made at any time within three (3) years thereafter, or at any time if it appears that 22
474	474	any part of the refund was induced by fraud or misrepresentation of a material fact. 23
475	475	(6) Armed forces relief. For purposes of this tax, the date appearing in 26 U.S.C. § 692(a) 24
476	476	shall be January 1, 1971. 25
477	477	(c) Omission of income on return. Notwithstanding the foregoing provisions of this section, 26
478	478	the tax may be assessed at any time within six (6) years after the return was filed if an individual 27
479	479	omits from his or her Rhode Island income an amount properly includible therein which is in excess 28
480	480	of twenty-five percent (25%) of the amount of Rhode Island income stated in the return. For this 29
481	481	purpose there shall not be taken into account any amount that is omitted in the return if the amount 30
482	482	is disclosed in the return, or in a statement attached to the return, in a manner adequate to apprise 31
483	483	the tax administrator of the nature and amount of the item. 32
484	484	(d) Suspension of limitation. The running of the period of limitations on assessment or 33
485	485	collection of tax or other amount (or of a transferee’s liability) shall, after the mailing of a notice 34
486	486
487	487
488	488	LC001321 - Page 14 of 15
489	489	of deficiency, be suspended for the period during which the tax administrator is prohibited under § 1
490	490	44-30-81(c) from making the assessment or from collecting by levy, and for sixty (60) days 2
491	491	thereafter. 3
492	492	(e) Limitations exclusive. No period of limitations specified in any other law shall apply to 4
493	493	the assessment or collection of Rhode Island personal income tax. Under no circumstances shall 5
494	494	the tax administrator issue any notice of a deficiency determination for Rhode Island personal 6
495	495	income tax due or payable more than ten (10) years after the date upon which the return was filed 7
496	496	or due to be filed, nor shall the tax administrator commence any collection action for any personal 8
497	497	income tax due and payable unless the collection action is commenced within ten (10) years after 9
498	498	a notice of deficiency determination became a final collectible assessment; provided however, that 10
499	499	the tax administrator can renew a statutory lien that was initially filed within the ten-year (10) 11
500	500	period for collection actions. Both of the aforementioned ten-year (10) periods are tolled for any 12
501	501	period of time the taxpayer is in federal bankruptcy or state receivership proceedings. “Collection 13
502	502	action” refers to any activity undertaken by the division of taxation to collect on any state tax 14
503	503	liabilities that are final, due, and payable under Rhode Island law. “Collection action” may include, 15
504	504	but is not limited to, any civil action involving a liability owed under chapter 30 of title 44. This 16
505	505	section excludes any liabilities that are deemed trust funds as defined in § 44-30-76, as amended. 17
506	506	(f) The ten-year (10) limitation shall not apply to the renewal or continuation of the state’s 18
507	507	attempt to collect a liability that became final, due, and payable within the ten-year (10) limitation 19
508	508	periods set forth in this section. 20
509	509	SECTION 10. Sections 1 and 2 of this act shall take effect January 1, 2026, and sections 3 21
510	510	through 9 shall take effect upon passage. 22
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514	514
515	515
516	516	LC001321 - Page 15 of 15
517	517	EXPLANATION
518	518	BY THE LEGISLATIVE COUNCIL
519	519	OF
520	520	A N A C T
521	521	RELATING TO ALCOHOLIC BEVERAGES -- TAXATION OF BEVERAGES
522	522	***
523	523	This act would provide technical and other corrections to various general laws relating to 1
524	524	taxation. 2
525	525	Sections 1 and 2 of this act would take effect January 1, 2026, and sections 3 through 9 3
526	526	would take effect upon passage. 4
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528	528	LC001321
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530	530